The Environmental Investment Allowance (MIA) encourages entrepreneurs to invest in environmentally friendly business assets and the construction of sustainable buildings. Each year, the Environmental List is published on behalf of the Ministry of Infrastructure and Water Management, consisting of a large number of environmentally friendly business assets and technologies. This list also includes the code for circular buildings.

In circular construction, the choice is made for used and/or sustainable materials that can be (re)used after demolition. Also important: during construction and the management of inventories, no harmful emissions to air, water, or soil may occur. All of this requires smarter design methods.

The benefits and subsidy amount

The tax subsidy concerns an investment deduction of 45% on eligible construction costs. With a tax rate of approximately 25.8%, the effective subsidy benefit is about 11.6%.

For homes, a maximum investment amount of €700 per m² of usable floor area (BVO) has been added this year. This means a maximum tax subsidy of approximately €81.30 per m² BVO. This limitation does not apply to utility buildings.

Additionally, the tax subsidy may not exceed 30% of the additional costs of circular construction compared to a reference situation. For medium and small companies, this is 40% and 50%, respectively.

Important conditions

The following conditions are associated with the MIA Circular code: ▪ All purchased wood used must meet the requirements for sustainable wood as set by the Timber Procurement Assessment Committee.

▪ The materials used must consist on a volume basis of at least:

1. 50% renewable raw materials, or b. 25% reused building products, or c. 50% demountable and reusable building products

▪ Throughout the building’s entire life cycle, an up-to-date report or dataset of all elements and components of the building must be available. ▪ New methodology: The MPG calculation requires the use of Environmental Performance of Buildings Determination Method 1.2 or higher and validated calculation tools with A2 data. ▪ MPG requirements for utility buildings: MPG requirements set at a maximum of €0.90 per m² (without industrial function) or €0.60 per m² (with industrial function). ▪ MPG requirements for homes: The maximum allowed costs per m² range from €0.60 to €0.99, depending on the type and size of the home. ▪ The eligible investment for residential buildings is limited to €700 per m² BVO. ▪ For a new building (or part thereof), the primary fossil energy use in kilowatt-hours per square meter of usable floor area per year (BENG 2) must be at least 10% lower than required under the Environmental Planning Decree. ▪ For a renovated building (or part thereof), the primary fossil energy use in kilowatt-hours per square meter of usable floor area per year (BENG 2) must be at least 20% lower than before the intervention. ▪ An independent assessor must validate the above conditions in a design and completion report.

Applying for the subsidy?

Van Draeckeburgh has over 20 years of experience in applying for the Environmental Investment Allowance. We can make an accurate estimate of the expected benefit. Our advisors submit applications on time. We ensure that your project team stays on the right track to fully utilize the subsidy benefit while you enjoy maximum advantage.

Would you like to know if the MIA offers possibilities for your project? Feel free to contact us or try the subsidy scan in advance.