Entrepreneurs have more opportunities in the new year to invest in energy-efficient business assets with tax benefits. The number of applications for this Energy Investment Allowance (EIA) increased sharply in recent years. This year € 10 million more is available.
The government financially supports companies' energy-efficient investments with tax benefits from the EIA scheme. This way it gives an impulse to energy saving, reducingCO2 emissions and using sustainable energy. Companies that invest in an asset on the Energy List can deduct 40% of the investment costs from their profits through the scheme. This reduces the taxable profit and thus makes the investment cheaper for them. In 2024, €259 million is available for this purpose.
Additional budget
Entrepreneurs are very interested in the tax benefit. The number of applications to the Rijksdienst voor Ondernemend Nederland (RVO) increased sharply in recent years. For both 2025 and 2026 there will be a one-time additional available budget for the EIA: € 441 million in 2025 and € 470 million in 2026. From 2027 the budget will be structurally increased by € 53 million per year.
A Cabinet response to the results of the policy evaluation of the scheme (2017-2021) already revealed that the energy investment deduction will be reduced from 45.5% to 40%. The maximum reporting amount per calendar year per company will be €149 million per year in 2024.
Changes 2024
The Energy List is the basis of the scheme. This list contains innovative, energy-saving and sustainable energy technologies and business assets that receive tax breaks. RVO adjusts the list every year. Company assets are then added, removed or adjusted with different requirements.
Some notable adjustments in the Energy List 2024 are:
- Payback period
In 2024, no longer include business assets whose payback period is clearly less than 5 years. The Energy Conservation Obligation requires companies and institutions to implement all energy-saving measures with a payback period of 5 years or less. These mandatory measures no longer have a tax benefit from the EIA. - Solar panels
Adjustments also apply to solar panels with an electricity connection for small consumers. From 2024, a maximum capacity of 55 kW will apply to these. As a result, there is only tax benefit for investments in smaller installations with a higher payback period. - More benefit for energy label A++ and higher
For entrepreneurs who achieve the highest attainable energy performance improvement for their commercial building according to the renovation standard (A++ or A+++), the maximum investment amount has been increased. This makes investing in maximum energy performance improvements of commercial buildings extra attractive. - New assets
New assets are also included, such as a sprinkler system for agricultural crops and vacuum coolers for bakeries.
Entrepreneurs can also apply for the investment deduction for business assets that are not specifically described in the Energy List. RVO then tests the investment for, among other things, the payback period.
Fewer free-riders
With the adjustments to the Energy List, the share of "free-riders" will decrease. Free-riders are entrepreneurs who would have made investments in energy technologies even without the tax benefit of the EIA. The adjustments to the Energy List and the increase in available budgets for the coming years make the scheme effective and future-proof.
