The text on this page was automatically translated and hence may differ from the original. No rights can be derived from this translation.
On behalf of the Ministries of Finance, Climate and Green Growth, and Infrastructure and Water Management, Dialogic conducted research on the Energy Investment Allowance (EIA) and Environmental Investment Allowance (MIA). Both are fiscal schemes that have been encouraging companies to invest in energy-saving and environmentally friendly technologies since 1997 and 2001 respectively by offering them tax benefits.
We investigated whether a fiscal scheme is preferable to a direct subsidy in the case of the EIA, and how the operation of the EIA and MIA can be improved and streamlined for businesses.
Is a fiscal scheme preferable to a direct subsidy in the case of the EIA?
We concluded that a one-to-one conversion of the current fiscal scheme EIA to a subsidy has negative effects in the short term. Structurally, the conversion does not have positive effects on target group reach, effectiveness, efficiency, and policy aspects. The research and the findings below focus on a one-to-one conversion of the EIA. In this regard, we find that this conversion primarily introduces new uncertainties regarding state aid frameworks. Exploring alternative principles for the subsidy's design was beyond the scope of the research. Therefore, we did not examine to what extent the conversion allows for a different substantive approach that could potentially improve target group reach, effectiveness, or efficiency. More data (e.g. data on the extent and reasons for non-use) and additional research are needed to determine (1) what substantive adjustments to the EIA are desirable, (2) whether such adjustments can only be shaped under a subsidy scheme, and (3) whether these adjustments align with state aid frameworks.How can the operation of the EIA and MIA be improved and streamlined for businesses?
In the report, we make several suggestions to improve and streamline the operation of the EIA and MIA for businesses:- Enhancing awareness among SMEs through differentiation of the deduction percentage.
- Increasing awareness of the Energy List through even better collaboration with suppliers of assets listed on the Energy List.
- Expanding pre-consultation with RVO for generic applications.
- Introducing horizontal supervision on applications by intermediaries.
- Discontinuing chain authorization in the new ICT portal.
- (Further) improving knowledge and information sharing between implementation organisations.
- Enhancing data collection and analysis.
