The Netherlands

The Netherlands

Netherlands Taxes and incentives for renewable energy KPMG Global Energy & Natural Resources.

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Support schemes

Investment and other subsidies

The following schemes are applicable for solar, wind, geothermal, hydro, biomaterial and offshore technologies.

  • An additional deduction of 41.5 percent of the amount invested in qualifying assets is available under the Energy Investment Allowance (Energie-investeringsaftrek or EIA):
    • Investments must be included on the Energy List (Energielijst) to qualify.
    • The maximum amount of investment for which the EIA can be claimed per calendar year per taxpayer is €118 million. Pro rata calculation applies in the case of transparent entities.
    • The amount per qualifying investment must be more than €2,500.
    • A granted EIA will be revoked partially or in full (added back to the fiscal profit) on alienation of the assets within a five-year period.
    • No prior use of the asset that is the object of investment is permitted.
    • The EIA and the Environmental Investment Allowance (see below) cannot be applied simultaneously.
    • Certain formal conditions apply to requests for the EIA.
    • The EIA is subject to a maximum annual budget, to be determined annually (€119 million in 2015).

Applicability: Not directly applicable to renewable energy, although assets for which this tax incentive is applicable can be used as part of the production of energy from renewables.

  • An additional deduction is granted of up to 36 percent of the amountinvested in qualifying environmentally friendly assets under the Environmental Investment Allowance (Milieu-investeringsaftrek or MIA):
    • Depending on the asset, the amount that can be deducted from the fiscal profit is 13.5, 27,or 36 percent of the investment costs. The maximum qualifying investment cost that is taken into account is €25 million per taxpayer per calendar year.
    • Investments must be included on the Environmental List (Milieulijst) to be qualifying assets.
    • The amount per qualifying investment must be more than €2,500.
    • A granted MIA will be revoked partially or in full (added back to the fiscal profit) on alienation of the assets within a five-year period.
    • No prior use of asset that is the object of investment is permitted.
    • The EIA and the MIA cannot be applied simultaneously.
    • Certain formal conditions apply to requests for the MIA.
    • The MIA is subject to a maximum annual budget, to be determined annually (€93 million in 2015).

Applicability: Not directly applicable to renewable energy, although assets for which this tax incentive is applicable can be used as part of the production of energy from renewables.

  • Free depreciation/depreciation at will is granted on qualifying environmentally friendly assets (Willekeurige afschrijving milieuinvesteringen or VAMIL):
    • Investments must be included on the Environmental List (Milieulijst) to qualify.
    • Free depreciation of up to 75 percent of the investmentcosts of the qualifying asset is granted. The maximum qualifying investment costs that are taken into account amount to €25 million per taxpayer per calendar year.
    • The total amount of qualifying investments must be more than €2,500 per application.
    • No prior use of asset that is the object of investment is permitted.
    • Certain formal conditions apply to requests for the accelerated depreciation.
    • Free depreciation/depreciation at will is subject to a maximum annual budget, to be determined annually (€38 million in 2015).

Applicability: Not directly applicable to renewable energy, although assets for which this tax incentive is applicable can be used as part of the production of energy from renewables.

  • Capital invested in green funds(appropriated funds invested in environmentally friendly projects or groene fondsen) is exempt from personal income tax:
    • A private investor will not be taxed for capital invested in green funds.
    • The maximum amount of invested capital exempted on an individual basis is €56,928.
    • A tax credit will be granted of 0.7 percent of the invested capital, with a maximum amount of invested capital of €56,928 on an individual basis.

Applicability: Investments in green funds.

Operating subsidies

Feed-in tariff

As of 1 April 2014, the regulation for the feed-in tariff (Stimulering Duurzame Energieproductie or SDE+) for 2014 has opened. This regulation includes the following features:

  • a budget ceiling established for all types of renewable energy such as wind, geothermal, solar photovoltaic, biomass and hydro
  • phased opening
  • a ‘free category’ to enhance investments in certain technologies
  • feed-in tariff granted for a certain period (5, 8, 12 or 15 years)
  • a maximum subsidy amount for the Netherlands, to be determined annually (EUR3.5 billion in 2015).

Taxes and Incentives for renewable energy

A 2015 KPMG report that provides updates on renewable energy promotion policies for over 31 countries.

 
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