Companies can receive a tax rebate for the next two years if they invest in converting their production to be more climate-friendly. This has now been adopted after the government and several parties in the Danish Parliament have agreed on the implementation of the green tax reform. An option is therefore now being introduced for companies to receive an increased depreciation basis for climate investments until 2027.
- It is important that we use tax policy to support and value companies that invest in Denmark, says Tax Minister Rasmus Stoklund (S) in a press release.
The increased depreciation basis will be 108 percent. This means that companies can receive a larger deduction for their expenses for green investments. This means that companies can deduct eight percent more in tax than the investment has cost. Such an investment could, for example, be that a gas-powered factory is converted to electric power.
Joy in the agreement circle
Overall, DKK 1.1 billion has been allocated for the rebate. The measure was adopted in the green tax reform from 2022, which introduced a CO2 tax on industry's greenhouse gas emissions. The tax rebate is thus a carrot that is intended to make the transition easier for companies before they are hit by the tax.
The SF, Conservatives and the Radical Party are behind the implementation, together with the government. The parties note their satisfaction that the transition can be made easier financially for Danish companies.
- In order to achieve a good green transition, our business community must have the right framework conditions for transitioning. With this agreement, we are improving the terms of procurement, so that part of the burden becomes a little easier to bear, says Frederik Bloch Münster, tax spokesman for the Conservatives in the press release.
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