NL-7:Energy Investment Allowance (EIA)
Energy Investment Allowance (EIA) is a tax relief programme which gives a direct financial advantage to companies that invest in energy-saving equipment and sustainable energy.
Energy Investment Allowance (EIA)  is a tax relief programme which gives a direct financial advantage to companies that invest in energy-saving equipment and sustainable energy. Entrepreneurs may deduct 44% of the investment costs for such equipment (purchase and/or production costs) from their company's pre-tax profits, over the calendar year in which the equipment was purchased. Investment costs up to a maximum of EUR 113 million may be reported per calendar year.
Annually the ministry publishes a Technology Eligibility List, a list of the technologies that are eligible for the fiscal scheme. The Energy List  is updated on an annual basis. Technologies that reached a certain market share of which the costs decreased substantially are taken off the list. Companies can also fill a request to put a specific energy saving technology on the list. If the technology meets certain criteria it will be integrated in the list.
Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.
Policy Instrument Type: Economic, Incentives & Subsidies
Position in the PyramidAbout Us
Start Date: 1997
|Supports||Long-Term Agreements on Energy Efficiency||Effort Defining|
|Supports||Permits under the Environmental Management Act||Supporting Measure|
|Supports||Long-term Agreement on Energy Efficiency for EU ETS enterprises (LEE)||Effort Defining|
Ministry of Economic Affairs
Ministry of Finance
Primary Objective: Energy
Stimulate investments in energy efficient technologies
In principle any company
Driver of energy consumption or emissions affected by policy: Technology implementation rate (of efficient technologies)
Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.
Quantitative Target? no
Progress Monitored? yes
Verification Required? no
Requirements on the Target Group
- Report investments within three months of purchase to AgentschapNL 
- Permits: If a building permit or Public Works and water Management Act (Wbr) permit is compulsory for an investment, this permit must have been issued by the competent authority at the application time for EIA via the IRWA. For investments in sustainable energy, such as solar energy, wind energy and energy from biomass for which an environmental permit is required, the application must have been issued before applying to the EIA.
Support by Government
A technology eligibility list is provided to support implementation of the Energy Investment Allowance.
Complexity of Implementation
Requires only a check on eligibility of measures against an existing technology list, whether measure has been implemented.
Only reporting on the implementation of the measure.
Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.
|Impact||Quantitative Estimate||Qualitative Estimate|
|Estimated effect on energy consumption or emissions||Not Applicable||Medium|
|Estimated costs/benefits for industry||Negative, reduces industry costs||Negative, reduces industry costs|
|Estimated cost for government||Not Applicable||Not Applicable|
|General Benefits||Industry increases its energy efficiency and reduces its CO2 emissions, which provides benefits for the environment and economy, improving competitiveness|
|Specific Benefits||• Reduced costs on energy efficiency equipment due to tax relief; • Increased implementation of energy efficiency equipment.|
References & Footnotes
 Energie Investerings Aftrek http://www.senternovem.nl/eia/
 AgentschapNL (2012). Energy and companies, Energy list 2012, http://www.agentschapnl.nl/content/brochure-energie-en-bedrijven-energielijst-2012
 AgentschapNL eLoket (AgencyNL digital portal) : http://www.agentschapnl.nl/organisatie/eloket
(*1) the national energy agency has undergone various mergers and name changes in the last decade, from Novem (the Dutch agency for Energy and Environment), to SenterNovem to currently AgenctschapNL (AgencyNL), see: http://www.agentschapnl.nl/
Other Useful Resources
by Ulrika Lomas, Tax-News.com, Brussels, 23 July 2012. Alluding to figures contained in its EIA annual report, the ministry explains that as a result of the tax reduction, companies in the Netherlands invested almost EUR1.5bn (USD1.8bn) in renewable energy and energy efficiency last year, 45% more than in 2010. The ministry says that the investments resulted in energy savings and carbon dioxide reductions equivalent to the emissions of 330,000 households.