New allowances in corporate taxation

From 1 January 2024, taxpayers can benefit from a tax allowance for investments in the construction of electricity storage facilities. The tax allowance is available for 6 tax years, with the first tax year being either the year of installation or the following tax year, at the taxpayer's option. This incentive is intended to encourage the installation of new electricity storage facilities which enable the taxpayer to store electricity generated for its own use.

To qualify, the taxpayer must purchase at least 75% of the energy fed into the electricity storage during the year from a renewable energy power plant connected to the public grid at the same point as the electricity storage. The aid intensity of the tax incentive, including all state aid, is 30% of the eligible costs of the investment in present value, up to a maximum of EUR 30 million. The intensity can be increased by 20 percentage points for small enterprises and 10 percentage points for medium-sized enterprises. Eligible costs are the cost of the investment, calculated at market prices in the case of linked enterprises.

The tax allowance can only be applied if the taxpayer makes the relevant electronic notification to the Minister responsible for tax policy before the planned start of the investment. It is advisable to pay particular attention to the deadlines, as no request for verification can be submitted if the notification is late. The tax incentive can be claimed in accordance with the regulations in force at the time of the notification. In order to benefit from the allowance, there are further conditions (such as a valid and effective network connection contract and network usage contract).

The tax allowance cannot be used in combination with the development tax credit, the energy efficiency tax credit and the aid under Commission Decision SA.102428. Moreover, the tax incentive is not accessible to - among others - operators of fisheries and aquaculture products, companies facing financial difficulties or having unpaid debts resulting from illegal aid. Compliance with the conditions of the tax allowance will be monitored at least once before the end of the third tax year following the first use of it.