The Energy Investment Deduction (in Dutch: Milieu-investeringsaftrek, or MIA) and the Arbitrary Depreciation of Environmental Assets (in Dutch: Willekeurige afschrijving milieu-investeringen or Vamil for short) are meant to stimulate investments in environmentally friendly assets. Based on the law concerning income tax (2001) entrepreneurs are able to apply for an investment deduction for assets that concern, among others, the following areas:
1. Raw materials and waste
2. Food and agricultural production
4. Climate and air
5. Lack of space
6. Built environment
The MIA can also be applied to environmental advice. This can be done by attributing the consulting costs to the costs of the investment. The MIA is also applicable to investments in Aruba, Curaçao, Saint Martin or the BES-islands.
Within the MIA eligible costs are those related to investments in assets not used before. These assets need to fulfill the condition as defined in the Environment-list (In Dutch: Milieulijst).
- All acquisition costs and development costs that are attributable to the asset as far as not excluded in the description of the asset; Development costs are costs for the utilization of own personnel, material from own warehouse and during self-managed activities for third parties;
- Environmental costs (are a part of development costs);
- Costs for parts that are technically necessary for and exclusively subservient to these assets and, therefore, do not have meaning on their own. Examples are pipes, appendices and measuring- and control equipment.
- Costs for the adaptation of assets if the ‘adapted assets’ fulfill the criteria of the Environment-list.
- Costs for the replacement of worn or defect assets, if the replacement is beneficial to the environment or animal welfare. This means that the replacement of (a part of) equipment should result in a reduction of emission, or increased water savings, waste prevention and animal welfare.
Within three months of entering the payment obligation, the investment should be reported. With regard to the development costs, this period of three months starts at the start of the quarter following that in which the costs are incurred. In case EIA is being utilized for a specific asset, this same asset cannot be reported for MIA.
Contributions and conditions
In the Environment-list there are various categories of investments, based on their environmental impact. The deductible percentage varies between the categories, with 13,5% for the investments with the least impact and 36% for the ones with the biggest positive impact. In addition to this there is also a category for which also 75% Vamil can be applied. With the Vamil arbitrary depreciation of environment-improving assets can be applied.
The investment needs to be at least €2.500,-. Investments of more than € 25 million are excluded in principle (except if approved by the European Commission).
Budget and deadlines
Applications can be done throughout the year.