The new designation, under the Capital Investment Encouragement Law, means that companies are eligible to receive government grants at a rate of 20% of the investment amount, and to pay corporate taxes at a rate of only 7.5%. These grants are only relevant to new factories and the expansion of existing factories in the city of Beit Shemesh.
Beit Shemesh Mayor Dr. Aliza Bloch thanked Economy Minister Amir Peretz and Finance Minister Israel Katz for the decision. "The significance of the decision is the recognition and backing of the state for urban activity in the fields of industry and commerce and the provision of an incentive for new establishments to make the city their home while assisting existing ones to expand their activities. The Beit Shemesh Municipality is boosting the fields of trade and employment."