Of Energy investment allowance (EIA). was a tax arrangement with which companies in the Netherlands could benefit extra from investments until and including 2022 in energy-efficient techniques en Sustainable energy, such as specific LED lighting solutions. In that year, the energy investment allowance was 45.5% of the investment costs that could be deducted from taxable profit, in addition to regular depreciation. With this, many entrepreneurs achieved an average net benefit of approximately 11% on the investment costs.
From 2023, different regulations will apply to fiscal incentives for energy saving (for example, the Environmental Investment Deduction or other forms of subsidies). Therefore, 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 instance, efficient LED fixtures were included on the Energy List. This provided entrepreneurs with a specific code with which they could register their investment for a tax deduction. Additionally, there was a generic code for custom-made investments that demonstrably saved significant energy, even if they weren't specifically listed on the Energy List.
To qualify for the EIA, a company had to:
Besides that, there was a merger period in there was a eHerkenning login method required (minimum confidence level 1) to submit the application.
Each year, the RVO published the Energy list, containing the company assets and required properties (e.g., certain lumens/W, lifespan, etc.) to qualify for EIA. The LED lighting had to demonstrably deliver significant energy savings. If your specific (LED) solution was not directly found in the list, but it did meet the savings benchmark, you could register it under a generic code.
Since the EIA regulation changed in 2023 and LED lighting (possibly) no longer or differently falls under it, it is advisable for many entrepreneurs to look into alternative fiscal schemes or subsidies. Consider:
For current information, please refer to the websites of the RVO and the Tax Administration.
Do you have questions about the EIA or are you looking for other ways to stimulate your LED investments fiscally?
Please feel free to contact us with your customer number if you are considering investing in our sustainable lighting.
We enjoy thinking along with our clients and will refer you to the appropriate authorities 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 customized advice, we recommend contacting our experts.
