If you invest in sustainable business assets as a business, you might be eligible to apply for the energy investment allowance (EIA), the environmental investment allowance (MIA) and/or the random depreciation of environmental investments (VAMIL). These schemes can offer interesting tax benefits. We have list the most important conditions for you.
MIA and VAMIL
The MIA and VAMIL are two separate fiscal schemes for investments in business assets that are on the Environment List. The MIA allows businesses to deduct up to 45% of the investment amount from the taxable profit. It then depends on the environmental effects and the prevalence of the business asset how high the percentage is. With the VAMIL, a maximum of 75% of the investment can be depreciated at a given moment. By writing off the investment earlier, businesses can reduce the taxable profit in a specific year and create an interest and liquidity advantage.
Conditions
The MIA and VAMIL can be used by any business in the income tax and corporate tax returns. To benefit from the MIA and VAMIL, your investment must meet at least the following conditions:
- the asset is on the Environment List;
- the asset has not been used before;
- the investment must relate to acquisition and/or production costs of the asset;
- the amount of the investment must be at least € 2,500 per asset.
Environment List 2023
The Environmental List is available for reference on the website of the Netherlands Enterprise Agency (RVO) A new Environmental List is published every year.
Several amendments have been made to the Environmental List 2023. Some notable changes are:
- Circular economy: the environment list 2023 provides a number of new opportunities to invest in assets that contribute to the circular economy. Some examples are (1) making the production process more sustainable by using raw materials with a relatively low impact, (2) using recycled polyethylene (PE) in the sheathing of distribution cables and (3) new circular building materials and design options.
- Sustainable agriculture: the proposed nitrogen measures have caused a number of changes in the MIA/VAMIL allowance for investments in sustainable stables. For example, there is no longer a tax advantage when investing in so-called mega stables. Additional requirements for sustainable stables are also included and eligibility for MIA/VAMIL is possible, among other things, when investing in a plasma installation for treating animal manure.
- Sustainable mobility: MIA/VAMIL is available from 2023 for a number of new investments in electric and hydrogen vehicles and mobile equipment. In addition, the options for charging points have been expanded: they may now also be installed for personal use.
- Climate and air: the tax break for gas-fired boilers with low nitrogen emissions has been suspended. However, a new tax break has been introduced for air-conditioning systems based on dew-point cooling.
EIA
The EIA is a fiscal scheme that applies to investments in business assets that are on the Energy List. In 2023, the EIA is 45.5% of the investment.
Conditions
The EIA is open to any entrepreneur in income and corporate tax. To benefit from the EIA, your investment must meet the following conditions, among others:
- the asset is on the Energy List;
- the asset has not been used before;
- the amount of the investment must be at least € 2,500 per asset;
- it is not possible to receive both EIA and MIA for the same asset.
Energy List 2023
The Energy List is also available for reference on the website of the RVO. A new Energy List is published every year.
Several amendments have been made to the 2023 Energy List. Some notable changes are:
- Commercial buildings: you will no longer receive an energy investment allowance for certain technologies from 2023. This includes direct-fired radiant panels, heat exchangers for free cooling and energy-efficient extraction systems. LED lighting and lighting conservation systems are also no longer on the list. In contrast, the scheme has been expanded to include more heat pumps and insulation methods.
- Processes: with regard to cooling systems, it is now mandatory to apply heat recovery for systems with a cooling capacity greater than or equal to 100 kW. Supermarket refrigeration units are additionally subject to the mandatory use of at least one parallel compressor.
- Transport equipment: electric refrigeration on refrigerated road transport has been added to the list. Standard air conditioning units and collapsible shipping containers are no longer eligible for an energy investment allowance.
- Renewable energy: energy investment allowances for solar panels that are not connected to the electricity grid will only be granted for systems that contribute significantly to the energy transition. The same applies to investing in a battery for storing sustainably generated electricity.
Please note! To be eligible for MIA, VAMIL or EIA, the asset must be reported to the RVO within three months of investment (entering into investment commitment).
Applying for EIA and MIA/VAMIL
To apply for EIA and MIA/VAMIL, please visit the RVO site. To log in, eRecognition 2+ or higher is required.
If you need any assistance with applying or if you would like us to take care of it for you, please contact Ruben Hennissen at rhennissen@joanknecht.nl or by phone on +31 40 240 9474, or speak with one of our tax advisers at the top right of this page (mobile devices: at the bottom). We are here to help you.