Tax benefit for reducing nitrogen emissions
Your company can contribute to reducing nitrogen emissions. This is possible by replacing or modifying your business assets. If you invest in doing so, you may be eligible for tax benefits.
What is nitrogen?
Almost 80% of the air consists of nitrogen (N2). Nitrogen is a colourless and odourless gas that by itself does not harm us or nature. But too much nitrogen does harm the environment and health. Especially if it mixes with other substances through chemical reactions. In traffic and construction, for example, nitrogen oxides (NOx) are released. And in agriculture and animal husbandry, manure causes emissions of ammonia (NH3).
To reduce excess nitrogen emissions, the government is working on measures in agriculture, industry, construction, traffic and transport.
Replace your business assets
You can help reduce nitrogen emissions by replacing or modifying (parts of) your business assets. Examples of solutions and techniques:
- Reuse nitrogen from waste in your production process.
- Use a heating system with low nitrogen emissions.
Make use of tax benefits
You will find environmentally friendly and energy-saving business assets on the Netherlands Enterprise Agency (RVO) Environment List and Energy List (in Dutch). To be eligible for a tax scheme, your business asset must be on one of these lists.
You can save on your taxes through the MIA and Vamil if you invest in environmentally friendly assets or techniques. With the MIA, you can deduct up to 45% of your investment costs from your profit. Vamil allows you to write off up to 75% of your investment costs at a time of your choosing. Your tax advantage can amount to over 14% of the investment amount with MIA/Vamil. View the calculation examples and use the calculation tool (in Dutch) to calculate your benefit.
EIA (Energy Investment Allowance): allows you to deduct up to 45.5% of the investment costs for new, energy-saving operating assets or techniques. This is in addition to the usual investment deduction. This reduces your taxable profit. Read how to apply for EIA.
Check the conditions before applying
You must meet a number of conditions to be eligible for one of these tax benefits. You must meet a number of conditions to get tax relief. For example, the asset must be new: it must not have been used before. Check the conditions of the MIA and Vamil (in Dutch), and the conditions of the EIA (in Dutch).
The Netherlands Enterprise Agency (RVO) handles the applications for these tax schemes.
Put your own business asset on the Environmental List or Energy List
The tax benefits only apply to business assets that are on the Environment List and the Energy List. Are you a producer or supplier of a low-nitrogen or energy-saving product that is not yet on one of these lists? Then you can have it included in the Environment List (in Dutch) or the Energy List (in Dutch). You can then point out to your customers that if they buy the product from you, they are eligible for a tax benefit.
Questions relating to this article?
Please contact the Netherlands Enterprise Agency, RVO