The Energy investment allowance (EIA) was a tax scheme that allowed companies in the Netherlands to take extra advantage of investments in energy-efficient technologies and renewable energy, such as specific LED lighting solutions. In that year, the energy investment deduction amounted to 45.5% of the investment cost that could be deducted from taxable profit, on top of regular depreciation. Thus, many entrepreneurs realised an average benefit of around 11% net on investment costs.
from 2023, other schemes around tax incentives for energy saving will apply (e.g. the Environmental Investment Allowance or other forms of subsidy). So always check the current status.
The EIA scheme had an annual budget of millions of euros (e.g. €149 million in 2022) and aimed to encourage companies to make energy-saving investments. For example, efficient LED luminaires appeared on the Energy List. This gave entrepreneurs a specific code with which they could register their investment for the tax deduction. There was also a generic code for customised investments that were proven to save significant energy, even if they were not specifically on the Energy List.
To qualify for the EIA, a company had to:
In addition, there was a notification period and had a eRecognition login tool required (confidence level minimum 1) to submit the application.
Every year, the RFO published the Energy list, listing the assets and required characteristics (e.g. certain lumen/W, lifetime, etc.) to qualify for EIA. The LED lighting had to demonstrably deliver significant energy savings. If you did not directly find your specific (LED) solution in the list, but it did meet the savings standard, you could register it under a generic code.
As the EIA scheme has changed as of 2023 and LED lighting is (possibly) no longer or differently covered by it, many business owners are advised to look at alternative tax schemes or subsidies. Think about:
For up-to-date information, please refer to the website of the RFO and the Tax Office.
Do you have questions about the EIA or are you looking for other ways to provide tax incentives for your LED investments?
If you are considering investing in our sustainable lighting, please feel free to contact us with your customer number.
We like to think with our clients and refer you to the right agencies or schemes if necessary.
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Disclaimer: This article is intended to provide general information and is not intended as professional advice. For specific questions or tailored advice, we recommend contacting our experts.
