The energy investment allowance (EIA) has also been significantly adjusted from 1 January 2024.
Entrepreneurs who invest in energy-efficient business assets may deduct 40% of the purchase cost from the profit on which they pay income or corporate tax. This deduction makes it attractive to invest in such assets.
Free riders
One of the aims of the adjustment is to significantly reduce the number of “free riders”. Free riders are entrepreneurs who would also have made the energy investments without the tax benefit of the EIA. This is achieved, among other things, by no longer including company assets with a payback period of clearly less than 5 years on the energy list.
Energy list
The energy list was published in the Official Gazette of 29 December 2023. RFO indicates on its website An overview of the main changes.
EIA can also be applied for company assets not specifically included in the energy list. RVO will then test the investment for its payback time, among other things.