The EIA is intended for entrepreneurs who want to invest in energy-saving technologies and the use of sustainable energy in their business. The EIA provides double benefits for these investments. Not only do you save on your energy costs, but you also pay less income or corporate tax.
The fiscal subsidy is provided for energy-saving investments in commercial buildings and processes.
▪ Improving the energy label
▪ Insulated glass
▪ Enhancing insulation in existing commercial buildings
▪ Heat pumps
▪ Thermal energy storage
• Heat recovery from ventilation air
EIA can also be applied for obtaining an energy advice or custom Energy Performance Certificate (EPA) advice. This advice must be provided before the investment commitment (contract) is made. The eligible investments are listed on the Energy List.
Key changes in 2023
The government has increased the budget by €100 million, making €249 million available in 2023.
▪ LED lighting has become commonplace and is therefore no longer eligible for subsidies.
▪ Due to rising energy costs, investments in energy-saving measures are paying off more quickly. For this reason, some assets are no longer eligible for subsidies, including the directly fired radiant panel, the free cooling heat exchanger, adiabatic humidification equipment, and the energy-efficient exhaust system.
▪ Air-to-water heat pumps with a capacity of 70kW or more are eligible with a Seasonal Coefficient of Performance (SCOP) value of at least 4.0.
To be eligible, the above measures must meet certain technical requirements listed in the Energy List.
What’s in it for you?
You can deduct 45.5% of the investment costs from your taxable profit, in addition to your usual depreciation. This results in a net tax benefit of 11.74%. Of course, energy-efficient measures also result in lower energy costs.
What can we do for you?
Van Draeckeburgh has over 20 years of experience in applying for the Energy Investment Allowance. We are able to provide an accurate estimate of the expected benefits. Our advisors submit the applications on time. We ensure that your project team stays on the right course to effectively utilize the subsidy advantage while you benefit from maximum savings.