New tax breaks for companies investing in energy transition

Rooftop solar panels installed on a commercial building, generating clean renewable energy.
From 1 January 2025, Belgian companies, and SMEs in particular, will have an additional incentive to invest in climate and energy transition. Thanks to a reform of the investment deduction, sustainable investments can count on a unique tax advantage of 40% for SMEs and 30% for large companies. This offers entrepreneurs a concrete opportunity to link tax benefits to environmentally and energy-friendly choices.

What does the measure entail?

  • One-off deduction: Companies are allowed to deduct part of their investments from the taxable base, leading to a tax reduction and partial recovery of investment costs.
  • Focus themes: Mobility (such as zero-emission vehicles and cycling infrastructure), energy (including renewable energy and heat pumps) and environment (reuse, recycling and carbon reduction).
  • Strict exclusion: Investments in fossil energy and other environmentally damaging sectors are excluded from the scheme.

Increased deduction rates

Besides the increased deduction of 40% (SMEs) and 30% (large companies), other percentages are also adjusted:

  • The standard deduction for SMEs rises from 8% to 10%.
  • A specific deduction of 13.5% remains for environmental investments in research and development.

Broad impact and budget

The reform, supported by an additional budget of €100 million, should help accelerate the reduction of carbon emissions and stimulate green innovation. This measure is an important fiscal lever to accelerate the energy transition and support companies in their sustainable transition.

Cooperation and certification

To benefit from these advantages, companies must have their investments certified by the FPS Mobility and the regions. This requires close cooperation between the federal and regional authorities.

Conclusion

This reform makes sustainable innovation more accessible and financially attractive for Belgian companies. The initiative shows that economy and ecology can go hand in hand, with businesses and the climate both benefiting from green choices.

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