The Energy Investment Deduction (in Dutch: Energie-investeringsaftrek, EIA in short) is a fiscal vehicle with the goal of stimulating the utilization of sustainable energy by organizations.
This vehicle entails that a certain percentage of a specific investment can be deduced from that year’s profit. Consequently, the organization has a lower fiscal profit due to which taxable profit is lower. The investment deduction does not influence the depreciation. The concerned assets are published on a yearly basis in the so-called Energy-list. For assets not present in this list separate regulations are applicable.
The deduction can also be applied in case of a lease. Investments in the Netherlands Antilles and Aruba are also eligible for this regulation, but the rules differ slightly from Dutch rules.
Within the EIA costs are eligible for the subsidy when they are investments in assets that haven’t been used before by the organization. These assets need to comply with conditions as defined in the Energy-list.
This concerns generically defined assets, including:
- New or recently in use buildings, machinery, processes or vehicles that are energy efficient.
- Investments in the combined generation of power and warmth.
- Investment in assets concerning sustainable energy.
These investments need to fulfill a certain energy-saving norm, which is dependent upon the category. Also, specific energy-investments are named, which are proven to comply with specific energy saving norms.
In the Energy-list, examples are named which can be assumed to comply to specific saving-norms. An investment occurs from the moment an asset is ordered (so from the moment an payment obligation towards a third party is accepted).
Within three months of accepting this obligation, the investment should be reported. If this does not happen in time, the right to EIA is void. The EIA can be applied by income tax and corporate tax paying entrepreneurs.
Contribution and conditions
Through the EIA it is possible to deduct 54,5% of the investment costs from your fiscal profit. The investment needs to be at least € 2.500,-.
Budget and deadlines
Applications can be filed throughout the year.