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Energy Investment Allowance-EIA
Energy - March 18, 2025

Energy Investment Allowance (EIA) 2024: What is it and how does it work?

What is the Energy Investment Allowance (EIA)?

The Energy Investment Allowance (EIA) is an attractive tax scheme for entrepreneurs who want to invest in energy-saving technologies and sustainable energy. Through the EIA, companies can deduct up to 45.5% of their investment costs from their taxable profit, in addition to regular depreciation. This leads to a significant reduction in income or corporate tax and makes sustainable investments financially more attractive.

 

Who is the EIA intended for?

The scheme is intended for entrepreneurs who are liable for income tax or corporate tax and invest in energy-saving measures. This applies to companies in various sectors, such as industry and production companies, real estate and utility construction, the agricultural sector, hospitality and retail, and transport and logistics.

Wat is Energie-investeringsaftrek?

Which investments qualify?

To qualify for the EIA, the investment must meet the conditions of the Energy List, which is compiled annually by the government. Some examples of investments on this list include:

  • Solar panels and solar water heaters
  • Heat pumps and energy-efficient climate systems
  • LED lighting and smart lighting systems
  • Heat and cold storage (ATES)
  • Insulation of commercial buildings
  • Energy-efficient production processes and machines
  • Energy monitoring systems: An energy monitoring system (EMS) provides detailed insight into energy consumption within a company, allowing inefficiencies to be identified and energy costs to be reduced. This contributes to more efficient energy management and can be part of broader energy management systems such as ISO 50001.

The complete list can be found on the RVO (Netherlands Enterprise Agency) website.

What are the conditions for the EIA?

To use the EIA, you must meet certain conditions:

  • The company must be liable for income tax or corporate tax.
  • The minimum investment per business asset is €2,500.
  • The investment must be listed on the current Energy List.
  • The application must be submitted to RVO within three months of placing the order.
  • The investment must not have been used before and must be newly purchased.

More information about the exact conditions can be found on the Tax Authority’s website (Belastingdienst): Investment Scheme Conditions.

 

 

 

What are the benefits of the energy investment deduction?

Taking advantage of the Energy Investment Deduction offers several benefits:

  • Direct tax savings: 45.5% additional deduction of the investment cost.
  • Faster payback time: Tax benefit reduces the net cost of the investment.
  • Lower energy costs: The investment ensures more efficient energy use and structural savings.
  • Achieving sustainability goals: EIA helps companies to become more sustainable and reduce their CO2 emissions.
  • Increased corporate value: Sustainable investments can contribute to a better corporate image and higher property value.

How does applying for the energy investment allowance work?

Applying for the Energy Investment Allowance involves the following steps:

  1. Check if your investment is on the Energy List.
  2. Submit a notification to RVO through eLoket within 3 months after the investment.
  3. Process the investment in your tax return and apply the extra deduction.
  4. Receive the tax benefit with your next income or corporate tax return.

 

 

Common mistakes in EIA application

Although the scheme is accessible, mistakes are regularly made that can lead to rejection of the application:

  • Late notification to the RVO (within 3 months required).
  • Investment does not meet the conditions of the Energy List.
  • Incorrect invoices or insufficient specification of the investment.
  • No correct processing in the tax return.

Combine the EIA with other subsidies

The EIA can be combined with other subsidies, such as:

  • MIA (Environmental Investment Allowance) for environmentally friendly investments.
  • SDE++ (Stimulation of Sustainable Energy Production) for large-scale sustainable energy projects.
  • ISDE (Investment Subsidy Sustainable Energy) for smaller sustainable installations such as heat pumps.

 

Conclusion: Make smart use of the EIA

The Energy Investment Allowance is a powerful instrument for companies wanting to invest in energy savings and sustainability. By making smart use of the scheme, companies can reduce their costs while contributing to a more sustainable future. Ensure you submit your application timely and correctly to optimally benefit from the financial advantages.