Energy Investment Deduction (EIA)

As an entrepreneur, you can invest in sustainable energy, new energy-efficient business equipment, or other energy projects. For example, you could install solar panels or make your business building energy-neutral. You can benefit from the Energy Investment Deduction (EIA) for these types of investments. Entrepreneurs who use the EIA in 2024 can deduct 40% of their investment amount from their profits in that year. Of course, certain conditions must be met to qualify for the EIA.

When can you claim the EIA?

The business asset you’ve invested in must be listed on the current Energy List of the Netherlands Enterprise Agency (RVO) and recognized as an energy investment by the Ministry of Finance and the Ministry of Economic Affairs. Additionally, the asset must not have been used previously, and it must be reported within three months of the order being placed. In 2024, the minimum investment amount per asset is €2,500, with a maximum investment amount of €136 million per calendar year. As an entrepreneur, you’ll want to maximize your benefit, so it’s good to know that the Energy Investment Deduction (EIA) can be combined with the Small Investment Deduction (KIA), which likely provides additional
benefits.

Environmental Investment Deduction (MIA)

The Environmental Investment Deduction (MIA) allows entrepreneurs to deduct a portion of their investments in environmentally friendly business assets from their profits. This offers a tax benefit for sustainable investments. With the MIA, a specific percentage of your profits can be deducted, depending on how common the business asset is and its environmental impact. The possible percentages are 27%, 36%, and 45%. The applicable percentage is determined by consulting the Environmental List from the RVO.

When can you claim the MIA?

The conditions for the Energy Investment Deduction also apply to the Environmental Investment Deduction. This means that a minimum investment of €2,500 must be made in a business asset, and the ability to offset losses is limited. Additionally, the asset must be listed on the Environmental List from the RVO and must not have been used previously. The total investment amount must not exceed €25 million. Environmental investments are categorized into three groups by the RVO. In 2024, you can claim 45% for category 1, 36% for category 2, and 27% for category 3.

Random Depreciation of Environmental Investments (VAMIL)

Certain environmental investments qualify for VAMIL, allowing you to deduct part of the investment amount from your profits. This can be done at any time, enabling you to defer the deduction to a later year when you may be investing less. With this scheme, you can deduct up to 75% of the invested amount in environmentally friendly business assets from your profits. The MIA and VAMIL are often combined. The MIA applies to different environmental investments than VAMIL, and both types of investments are listed on the RVO’s Environmental List.

Report your investment to the RVO on time

Make sure to report your sustainable business investment promptly to the Netherlands Enterprise Agency (RVO) to ensure you can claim the investment schemes. You must submit the application for this investment scheme within 3 months of committing to the investment. These 3 months start from the signing of the order confirmation or quote. Don’t wait until you receive the invoice, as it may be too late by then.
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