Key tips on energy, climate and mobility

The end of the year is a good time to consider the available tax facilities for sustainability in the areas of mobility and energy. Below, we have included some year-end tax tips for 2024 which can help individuals and businesses save money and contribute to sustainability goals.

Energy investment allowance

Companies investing in energy-efficient equipment or technology can benefit from the energy investment allowance (‘EIA’). In 2024, this scheme allows a tax deduction of up to 40% on eligible investments, reducing taxable profit. The scheme covers equipment like high-efficiency boilers, heat pumps, solar panels, and energy management systems.

The main conditions for applying EIA are:

• the asset must be new;
• the amount of energy investments must be at least 2,500 euros per asset;
• the asset must be on the energy list; and
• the asset must be reported to RVO in a timely manner (the main rule is that a notification must be made within 3 months after the obligation to purchase has been entered into).

We advise you to review planned energy saving investments and make eligible purchases before the end of the year to take advantage of this allowance.

Environmental investment allowance and random depreciation of environmental investments

Companies investing in environmentally friendly assets can benefit from the environmental investment allowance (‘MIA’). In 2024, this scheme offers a tax deduction of up to 45% on eligible investments, reducing taxable profit. Eligible items include equipment for reducing CO₂ emissions, waste processing, and energy-efficient vehicles.

The main conditions for applying MIA are:

• the asset must be new;
• the amount of environmental investments must be at least 2,500 euros per asset;
• the asset must be on the environmental list; and
• the asset must be reported to RVO in a timely manner (the main rule is that a notification must be made within 3 months after the obligation to purchase has been entered into).

Vamil is a tax advantage for entrepreneurs investing in environmentally friendly assets. Vamil allows 75% of an investment to be depreciated at any time. The remaining 25% of the investment is depreciated regularly. With Vamil, a liquidity and interest advantage can normally be achieved because tax payments can be deferred. It may also be advantageous to make the arbitrary depreciation in the year(s) in which high profits are made.

We advise you to check the eligible investments on MIA/Vamil list and consider completing these purchases before the end of the year to benefit from MIA/Vamil deduction in the current tax year.

Subsidy for large scale renewable projects

The subsidy for large-scale renewable projects (Stimuleringsregeling Duurzame Energieproductie en Klimaattransitie: ‘SDE++’) supports large renewable energy projects, focusing on CO₂ reduction. Eligible projects include renewable electricity, heat production, and CO₂-saving technologies.

Facilities for electric vehicles

For businesses and individuals, several tax benefits support electric vehicle (‘EV’) use, such as reduced additional tax liability (so-called ‘bijtelling’) for EVs and zero-emission commercial vehicles.

We advise you to consider purchasing or leasing EVs before year-end to secure lower additional tax liability rates and potential MIA benefits.

Solar panels purchase and installation

For the purchase and installation of solar panels on business premises a rate of 21% of VAT is due. The entrepreneurs can claim VAT return.  However, installing solar panels on a private home qualifies for VAT exemption, making it easier to install solar energy systems at a lower cost.

Entrepreneurs that invested in solar panels on their business premises should make sure to claim back the VAT on installation costs.

Home sustainability mortgage deduction

Homeowners investing in energy-saving improvements like insulation, HR++ glass, or heat pumps may qualify for mortgage interest deductions if costs are financed through a sustainability loan.

Conclusion

Stay updated on evolving tax regulations and sustainability subsidies, as the Dutch government regularly updates its tax incentives in line with climate objectives and overall sustainability goals. Consulting with a tax advisor familiar with Dutch energy and other sustainability measures can further enhance tax optimization. You can find more in our dedicated Sustainable tax is responsible tax - Forvis Mazars - Nederland page.

Want to know more about the above year-end tips?

Would you like to know more about a subject from these year-end tips? Your Forvis Mazars tax advisor is more than happy to assist you further.