The Energy Investment Allowance makes it more financially attractive for companies to invest in energy-saving assets. In addition, energy-efficient investments also result in lower energy bills. With this scheme, the government encourages sustainable business.
Which energy investments are eligible
The EIA is a tax deduction scheme. The scheme offers direct financial benefits to entrepreneurs who invest in energy-saving assets and renewable energy. The overview of energy investments is divided into five categories: company buildings, processes, means of transport, renewable energy and energy advice. Examples of eligible energy investments include insulation and LED lighting.
Level of subsidy
If an asset qualifies for EIA, 55.5% (was 58% until 2016) of the investment cost may be deducted from taxable profit in 2017. As a result, the net benefit is on average 13.5% of the investment.
Main conditions
- The amount of energy investment is a minimum of €2,500 per asset.
- You should apply for the EIA within 3 months of ordering the supply.
- The savings must meet one of the bottom two conditions:
- The asset is listed in the Energy List. The list consists of assets proven to meet the relevant savings standard.
- Of business assets not on the energy list, the applicant must demonstrate that these assets meet the applicable energy performance requirement (savings standard). - You cannot get both an energy investment deduction and an environmental investment deduction for the same asset at the same time.
If you have any questions or uncertainties, contact your adviser.
This article was produced in collaboration with Major Q. Major Q is a specialist in grant acquisition. You can find more information about Major Q here.
