More investments in energy-saving measures thanks to increased investment deduction

23 March 2021


The increased investment deduction for energy-saving investments, which was created by the Flemish Government to encourage companies to invest in energy saving and renewable energy, is bearing fruit. More and more companies are making use of the measure and the amount of investment is rising.

In 2020, many companies signed up for this tax benefit. In total, 1,130 investments were made, amounting to EUR 683 million, according to the Flemish Minister of Energy Zuhal Demir and Luc Peeters, administrator-general of the Flemish Energy and Climate Agency. The number of files submitted remains roughly the same each year, but the amount approved for investment deduction has more than doubled in the last five years.

The figures therefore show that more and more companies are making use of this tax benefit to invest, for example, in improving their insulation, installing PV panels, improving the efficiency of their industrial processes and increasing the efficiency of their HVAC or lighting.

Luminus Solutions closely follows the energy legislation and can advise and guide you in your energy saving project. For more information about the possibilities of an investment deduction for your company, please contact our experts. They will be happy to explain it to you.


What is an (increased) investment deduction?

An investment deduction is a tax benefit whereby a certain percentage of the purchase or investment value of the investments may be deducted from the taxableprofit. Energy-saving investments and investments in renewable energy made by medium-sized and large enterprises are eligible for an inreased investment deduction of 13.5%, which corresponds to an aid rate in the form of tax relief of about 4%. In this way, the government stimulates energy-saving investments and investments in renewable energy in companies and we can gradually make the transition to a climate-neutral society in Flanders.

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