If you, as an agricultural entrepreneur, want to invest in energy-efficient or environmentally friendly business assets in the coming year, you can get a tax investment deduction. That is, if they are on the Energy or Environment list for 2021.
The lists for Energy Investment Allowance (EIA) and Environmental Investment Deduction (MIA) and Random Depreciation of Environmental Investment (Vamil) have been published by the Netherlands Enterprise Agency (RVO). In 2021, tax benefits are available for investments in Maatlat Sustainable Livestock stables and stable techniques, precision agriculture, protein transition, circular agriculture, low-emission yards and environmentally friendly mobile machines.
Led longer than average
LED lighting is one of the most popular investments, for which EIA is requested. In 2021 you can only receive EIA benefits for lamps that have a longer than average lifespan. The requirement for energy efficiency per power will be dropped.
In addition to the specific techniques on the energy list, it is also possible to report energy savings via the so-called general code. What is new is that the energy saving per invested euro is no longer the leading factor. From now on, the payback period will be considered. This must be at least 5 years.
The advantage
By using the EIA scheme, agricultural entrepreneurs can deduct 45% of the investment costs from the taxable profit. With the MIA, the investment allowance can be up to 36% of the investment amount. That deduction is in addition to the usual investment deduction. With the Vamil, 75% of the investment costs can be written off at any time.
The budget for the EIA for 2021 has increased by € 2 million compared to 2020 to € 149 million. In 2019, the total investment amount within agriculture and horticulture was € 54 million, which was a decrease of 20% compared to the previous year. The subsidy applications for energy-efficient milk cooling were the most frequent at that time. The budgets for MIA and Vamil for the next year are € 114 million and € 25 million respectively.
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