The Energy Investment Allowance (EIA) lowers the investment costs of companies that invest in energy-efficient technologies. With EIA, companies receive an additional deduction of 45% of the investment costs, on top of the regular depreciation. As a result, companies pay less tax. The total net benefit is up to 13,5% for companies that pay Dutch corporate taxes.
Which investments are covered by EIA?
All clearly defined assets that are listed in the brochure ‘Energy List 2019’ can be subject to EIA, but also specific customized investments – that result in substantial energy savings – can be covered. Finally, it can be interesting to place your company’s product on the Energy List to lower the investment threshold for (potential) customers, resulting in more competitivity.
All energy-efficient investments qualify for EIA, as long as:
- The company pays corporate taxes (IB or vpb) in the Netherlands, Aruba, Curaçao or the BES-islands;
- The application is submitted within 3 months after the investment;
- The investment relates to an asset that has not been used before;
- The invested amount is higher than € 2.500.
In addition to the purchase costs, the production costs of energy-efficient technologies are also eligible for EIA. Think of, for example, wage- and material costs for the production and installation of these assets. This also applies to expenses for technical provisions for – or adjustment of – existing assets.
EIA for clearly defined investments
Each year, a brochure of the energy-efficient investments that qualify for EIA is published. This Energy List describes approximately 150 assets, divided into a number of categories. In total, 5 categories are listed: company buildings, processes, means of transport, sustainable energy and energy advice. The Energy List 2019 offers a clear overview of all energy-efficient technologies that belong to each category.
EIA for customized investments
Is your specific investment not individually mentioned in the Energy List, but does it result in significant energy reduction? In this case, it’s possible to apply for this asset under a generic code. Important is to be able to demonstrate that the investment replaces an existing technology in your own company, resulting in energy reduction.
Company-specific products on the Energy List
It is possible to place your company’s product(s) on the next Energy List to lower the investment threshold for customers and to improve the competitive position of this product. For this, a proposal for inclusion in the Energy List need to be submitted, which describes the asset and shows the potential energy reduction of the product.
Ugoo supports companies in maximizing the EIA income. For more information about EIA, please contact one of our consultants (020-3655531).