The Cabinet sees the energy investment allowance (EIA) as one of the ways to achieve its stated energy and climate goals. This tax incentive scheme will therefore be continued. This is evident from a letter Which Minister Wiebes submitted following the evaluation report on the energy investment deduction to the House.
Energy investment deduction
The energy investment allowance is a tax deduction. Entrepreneurs who invest in business assets, which are classified as innovative in the field of energy, may claim a deduction from taxable profits for income or corporate tax purposes. Which business assets are eligible for the energy investment deduction is shown in the energy list, which is set annually.
Find out how the energy investment deduction works in our article Energy investment allowance (EIA) direct financial benefit. It is important to report an energy investment on time to RFO.
Recommendations
Of course, the Cabinet does act on the recommendations of the evaluation report. For instance, starting 2019, the deduction will be reduced from 54.5% to 45%. Then, of course, the net tax benefit is lower. But sufficient incentive remains for entrepreneurs to make energy investments, according to the Cabinet. To reduce the administrative burden, the possibility of further integrating the digital counter for the energy investment deduction and that for the environmental investment deduction/VAMIL is being investigated. Final responsibility for the energy list will lie with the Minister of Economic Affairs.