Making your business sustainable becomes more affordable when you align tax schemes, guarantees and bank financing properly instead of applying for them separately.
Business owners who want to make their operations sustainable quickly run into a maze of schemes: EIA, MIA, Vamil, BMKB-Groen, and then there is standard bank financing. Each scheme has a different purpose and application method, making it tricky to see how they complement one another.
The key point is that these schemes do not compete, but can actually be stacked to reduce the net investment and get the financing sorted. In this article, I explain what each scheme does, how to combine them, and what to watch out for so you don't fall between two stools.
EIA: tax relief on energy-saving investments
The Energy Investment Allowance (Energie-investeringsaftrek) allows you to deduct an additional portion of the investment in specific energy-saving operating assets from your profit, on top of standard depreciation. This yields a tax benefit, not a direct cash subsidy. The asset must feature on the energy list (energielijst) determined annually, so check the current conditions with RVO before finalising an investment.
For financing, this benefit is relevant because it improves your liquidity position in the longer term via a lower tax assessment, which a bank can factor into assessing your repayment capacity.
MIA and Vamil: benefits for environmentally friendly investments
The Environmental Investment Allowance (Milieu-investeringsaftrek) and the Arbitrary depreciation of environmental investments (Willekeurige afschrijving milieu-investeringen) are comparable to the EIA, but aimed at environmentally friendly business assets rather than specifically energy conservation. Here, too, the asset must be listed on the environmental list (milieulijst). In some cases, MIA and Vamil can be applied alongside EIA, provided the asset is not double-counted for the very same component.
The tax benefit of MIA and Vamil, just like EIA, comes via your tax return and is therefore not an immediate cash injection at the start of the project. Bear this in mind in your cash flow planning: you will need to pre-finance the investment first.
BMKB-Groen: guarantee scheme for sustainability
RVO's BMKB scheme guarantees part of a bank loan if you lack sufficient collateral, and the BMKB-Groen variant is specifically aimed at sustainability investments. This makes it more attractive for a bank to lend, as part of the risk rests with the government rather than entirely with the bank.
This scheme is intended for situations where your collateral is limited, for example because you lease your premises instead of owning them, or because the sustainability measure itself holds little collateral value. Discuss with your bank whether this applies to your project, and check the current conditions with RVO.
How to combine the schemes
The practical sequence is usually: first determine which investment you want to make and whether the asset is on the energy or environmental list, then apply for the tax schemes via your tax return, and in parallel discuss with your bank whether BMKB-Groen is required to secure the loan. Ensure your records are in order, as notification deadlines apply for EIA and MIA after entering into the commitment.
- Check whether your operating asset is on the energy or environmental list for the current year
- Register the investment with RVO on time; deadlines are strict
- Discuss with your bank whether BMKB-Groen can help if your collateral is limited
- Factor in pre-financing, as the tax benefit is processed via your tax return
- Ask your accountant or adviser to include the schemes in your annual plan, not in retrospect
Calculation example: stacking on an insulation and solar project
Suppose you invest 120,000 euros in roof insulation and solar panels. Part of the investment, for example 90,000 euros, qualifies for the energy list and thus for EIA. The tax benefit from this reduces your effective investment over the years, depending on your profits and the applicable corporate income tax rate. For the remaining financing of 100,000 euros after deducting your own equity contribution, you apply for a loan from your bank, with BMKB-Groen serving as a guarantee because you rent your premises.
Always run these types of scenarios through with your own adviser and current percentages, as the exact tax benefits depend on your specific business situation and the regulations in force at the time.
Why this is relevant for the Eindhoven region
In Brainport, home to many manufacturing and technology companies, sustainability and innovation often go hand in hand. Investments in energy-efficient production equipment, for example, qualify both for innovation subsidies and for energy and environmental schemes. It therefore pays to take a broad look at your sustainability plan with your adviser, rather than applying for each scheme in isolation.
Next steps
First compile a list of the investments you are considering and check per investment whether it is on the energy or environmental list. Contact your accountant or adviser to apply for the tax schemes correctly and on time, and discuss with your bank whether BMKB-Groen is required to secure the financing. Also read the page on subsidies and innovation funding for a broader overview, and use the financing calculator for an initial indication of your borrowing requirement.
Frequently asked questions
- Can I apply EIA and MIA simultaneously to the same investment?
- In some cases you can, provided it does not concern the exact same part of the asset. Check the current terms and lists with RVO to assess double application correctly.
- What is the difference between BMKB and BMKB-Groen?
- BMKB-Groen is a variant of the standard BMKB scheme specifically aimed at sustainability investments. The core mechanism—a government guarantee on bank financing—is similar.
- When do I need to register an investment for EIA or MIA?
- Notification deadlines apply after entering into the commitment, so register your investment promptly. Check the current deadlines with RVO before entering into the commitment.