EIA Energy Investment Allowance: a guide for businesses
Direct answer
The Energy Investment Allowance (EIA) is a Dutch tax scheme that lets entrepreneurs deduct an extra share of an investment in energy efficient business assets from their taxable profit. This deduction comes on top of regular depreciation and reduces the tax you pay. The deduction percentage is set each year. The investment must match a description on the RVO Energy List.
- Clear definition
- Data-driven assessment
- Risks and opportunities visible
- Practical next steps
EIA Energy Investment Allowance: scattered information versus Energy Intelligence
Any business buying a heat pump, efficient cooling or another energy saving technology pays for it first. The Dutch government wants to make that choice more attractive. The EIA therefore lets you deduct an extra part of such an investment from your profit. Think of a bakery replacing an old oven with an efficient model from the Energy List. Two organisations are involved: RVO assesses the technology, and the Tax Administration processes the deduction in your tax return.
- You deduct part of the investment costs from your taxable profit as an extra allowance, on top of the normal depreciation of the asset.
- Only investments that match a code description on the current RVO Energy List qualify.
- You report the investment within three months of the order date through RVO's online application portal, otherwise the benefit lapses.
Insight
Traditional approach
Information is scattered across portals, documents, invoices or separate spreadsheets.
Modern approach
Data, context and interpretation are brought together into a clear decision picture.
Decision-making
Traditional approach
Choices are made based on averages, assumptions or occasional analyses.
Modern approach
Scenarios, KPIs and current measurement data make the trade-off more concrete and repeatable.
Follow-up
Traditional approach
Actions often stay non-committal or disappear into separate reports.
Modern approach
Follow-up actions, monitoring and reporting are linked to the same energy data.
How does the tax deduction work?
The EIA is not a grant paid into your account but a deduction in your tax return. You depreciate the asset as you would with any investment. On top of that, you may deduct a percentage of the investment costs from your taxable profit once. That percentage is set annually by the government; check the current position with RVO. A lower taxable profit means less income tax or corporate income tax. The benefit therefore depends on your profit and your tax rate. If your business makes no profit in a given year, the deduction delivers little that year; discuss options with your accountant or tax adviser. The deduction applies to purchase costs and to production costs, for example when you build an installation yourself.
- Extra deduction from taxable profit, on top of regular depreciation
- The deduction percentage is set annually
- The benefit works through lower income tax or corporate income tax
- Applies to purchase costs and production costs
What is the Energy List and how do you apply?
The Energy List is RVO's annually updated list of business assets that qualify for the EIA. Each technology has a code with a precise description, for example for heat pumps, LED lighting or insulation. Your investment must match that description at the time of ordering. Besides specifically described technologies, the list contains generic codes for tailored investments that demonstrably save a substantial amount of energy. You apply digitally through RVO's online application portal, using the eHerkenning business login. Do this within three months of the order date. For production costs, you apply within three months after the quarter in which you incurred them. RVO assesses the application and issues an EIA statement. With that statement you apply the deduction in your tax return. Applying too late means the benefit lapses.
- Check the code and description on the current Energy List before you order
- Applications go digitally through RVO's online application portal, with eHerkenning
- The deadline is three months from the order date
- After RVO issues the EIA statement, you apply the deduction in your tax return
Combining with other schemes and points of attention
The EIA does not stand alone. For the same asset you cannot receive both the EIA and the Environmental Investment Allowance (MIA); you choose the scheme that fits best. Combining the EIA with the small scale investment allowance (KIA) is possible under conditions. If you also receive a subsidy for the same investment, ask RVO what this means for the amount on which you receive the deduction. The main advantage of the EIA is that energy efficient technology becomes fiscally more attractive than a standard alternative. There are points of attention as well. The application deadline is strict, the Energy List description is precise, and the benefit depends on your taxable profit. Therefore include the scheme early in the investment decision and document the order and the application properly.
- No EIA and MIA for the same asset
- Combining with the KIA is possible under conditions
- The benefit depends on your taxable profit and tax rate
- Strict application deadline: document the order and the application properly
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