Abbreviated form of legal source(s)
- Income tax law 2001
Description of support scheme
Through the Energy Investment Allowance (EIA – Energie Investerings Aftrek), enterprises who choose to invest in energy-efficient technologies and sustainable energy can gain tax benefits. The EIA allows enterprises to deduct a maximised percentage of eligible energy investments from the enterprise’s taxable profit for that year (art. 3.42 par. 1 Income tax law 2001). The percentage and maximum are determined by law and can change per year. For 2024 these were 40% and € 149,000,000 respectively. The total investment costs per enterprise must be higher than € 2,500. The total budget for 2024 was € 431,000,000. The Energy List published every year describes eligible investments. Proposals for the Energy List for the next year can be submitted until 1 September of the running year.
Amount
For 2024 the amount of tax deduction may cover up to 40% of total investments made in renewable energy or energy-efficiency technologies (art. 3.42 par. 3 Income tax law 2001). The actual percentage varies per project and depends on several characteristics, such as the source of energy.
Addressees
Enterprises that choose to invest in renewable energy plants, energy-efficiency technologies, or energy-saving projects (Income Tax Act 2001, art. 3.42 and art. 3.43).
Procedure
Enterprises must apply for this tax benefit online with the Netherlands Enterprise Agency that will review these applications and approves or denies the application. The application will then be passed on to the Tax Authority that will determine which percentage of tax credit will be awarded.
Competent authority
- Netherlands Enterprise Agency
- Tax Authority