Cost-effective sustainability thanks to subsidies

Cost-effective sustainability thanks to subsidies

The sustainable transition is nothing new anymore. Many entrepreneurs, including many of our member meeting venues and hotels, are also participating in it. Yet some venues still have cold feet.

We want to allay some of the fears that sustainable innovation is expensive with this blog post. In fact, there are a number of subsidies and tax breaks for sustainable initiatives by entrepreneurs. These subsidies can then contribute to obtaining various sustainability certificates. So "advantageous" sustainability thanks to subsidies!

In this blog post, we list some of the possibilities of subsidies and tax breaks.

Grants

Sustainable Energy Investment Subsidy (ISDE)
The ISDE is a subsidy to sustainably heat your (business) premises using a heat pump or solar boiler. This subsidy can also be used for "smart" energy generation using a wind turbine or solar panels.

In 2022, the ISDE subsidy for (hybrid) heat pumps and insulation measures larger than 1 kW is increased from 20% to 30% of the average total investment cost. (The increased subsidy for these measures only applies to measures actually implemented in 2022). You can find more information about this on the website of the Central government

Stimulating Sustainable Energy Transition and Climate Transition (SDE++)
Meanwhile, have you supplied your premises with renewable energy? Then the SDE++ can be used to generate -and invest in- renewable energy, heat and/or gas. You can apply for this subsidy at my.rvo.nl and the moment you are awarded the SDE++, you will receive a fixed subsidy amount per kilowatt-hour of solar energy generated for 15 years.

If you are awarded an SDE++ subsidy for solar panels, you will receive a fixed subsidy amount per kilowatt-hour of solar energy generated for 15 years. Do pay attention to the opening deadlines and the available budget. For budgeting and openings, go to the site of the RFO.

In 2021, this was a maximum of 7.22 euro cents per kWh generated.

SME sustainability grant scheme (SVM)
This scheme has been temporarily discontinued. A large number of entrepreneurs told the RFO that the quality of advice from certain parties was inadequate. The SVM does reopen, according to the RFO site.

This subsidy scheme covers hiring an energy consultant. It allows SMEs to get up to 750 euros back when hiring a professional.

Zero Emission Commercial Vehicles Grant (SEBA)
Let's preface by saying that there is no more sustainable way than cycling, walking and public transport. But for those entrepreneurs who still choose the car, there is a subsidy for fully emission-free company cars. Both when buying and leasing. Apart from the tax benefits (reduced addition and no motor driving tax), you can reclaim up to 12% of the new car price through the SEBA in 2022. This goes up to a maximum of €5,000. So making your car fleet more sustainable is a lot more advantageous through subsidies.

Tax benefits

In addition to becoming more sustainable thanks to subsidies, there are a large number of tax benefits you can get from sustainable investments. We list them:

Energy investment allowance (EIA)
The energy investment deduction allows investments in CO2 reduction, energy-efficient techniques and renewable energy to be partly deducted from taxable profit.

The deduction can be used for premises, product and transport. However, there are several conditions you need to meet as an organisation. One of the conditions is that the investment made meets the description on the energy list of rijksdienst voor ondernemend Nederland (RVO)

Random depreciation of environmental investments (VAMIL)
You can gain another very interesting tax advantage with the VAMIL scheme. This is because environmentally friendly business investments can be depreciated up to 75% at a time convenient to you. This means that in any calendar year, you can write off a percentage of up to 75% so that less tax has to be paid.

The condition for this tax benefit is that the asset to be depreciated on the environmental list of the RFO states.

Environmental investment allowance (MIA)
The MIA was introduced to purchase environmentally friendly business assets. It is often combined with the VAMIL. In fact, both schemes use the Environmental List. This list includes all business assets eligible for MIA and/or VAMIL

The MIA scheme allows you to deduct up to 45% of the investment cost from taxable profit since 2022.

Small-scale investment deduction (KIA)
Not for long-term investments, but definitely worth mentioning; KIA, this deduction is for business assets you invest in in a calendar year. Think office furniture, computers and tablets. The KIA is a deduction from your profit. The amount you may deduct depends on the amount invested in the financial year. You can find the amount of the KIA here.

With this overview of subsidies and tax breaks, we hope to have given you a handle on options for your sustainable investments.

Not sure yet what kind of investment you want to make? Check out our other blog posts;

Getting started with sustainability certificates
10 steps to a sustainability certificate

What are you?