Tax regulation mechanism (Energy investment deduction)

• Income tax law 2001
• Energy List 2021

Through the Energy Investment Allowance, enterprises who choose to invest in energy-efficient technologies and sustainable energy can gain tax benefits. 45.5% of the amount of eligible energy investments will then be deducted from the enterprise’s taxable profit for that year (art. 3.42 par. 1 Income tax law 2001).
The budget for the Energy Investment Allowance for 2021 is 149 million euros. The investment costs must amount to minimum 2,500 EUR and maximum 126 million EUR per calendar year. The Energy List published every year describes eligible investments. Proposals for the Energy List 2022 can be submitted until 1 September 2021.

The amount of tax allowance may cover up to 45.5% of total investments made in renewable energy or energy-efficiency technologies (art. 3.42 par. 3 Income tax law 2001). The level of funding varies per project and depends on several characteristics, such as the source of energy.

Enterprises which choose to invest in renewable energy plants, energy-efficiency technologies, or energy-saving projects (art. 3.42 and art. 3.43 Income tax law 2001).

Enterprises must apply for this tax benefit online with the Netherlands Enterprise Agency who will review these applications and approves or denies the application. The application will then be passed onto the Tax Authority who will choose what amount of tax credit will be awarded.

• Netherlands Enterprise Agency
• Tax Authority