The investment credit shall be granted upon application to a company that carries out a large investment aiming at a climate neutral economy in Finland related to energy production from renewable sources and energy storage, low-carbon industrial production processes and energy efficiency measures or sectors that are strategic for the transition to a climate-neutral economy.
Investment credit may be awarded for investment projects related to promoting energy production from renewable sources and storage of renewable energy, decarbonisation and energy efficiency of industrial production processes and to promoting the transition to a climate neutral economy.
The amount of the investment credit is 20 per cent of the costs eligible as the basis for the investment credit. The maximum amount of the investment credit is EUR 150 million per company. If the company belongs to a group, the maximum amount of the investment credit is calculated for each group.
The conditions for granting investment credit are described in more detail in the Act on tax credits for certain large investments aiming at a climate neutral economy and on the website Tax credit for large clean transition investments.
Investment projects eligible for investment credit for the production of energy from renewable sources and for the storage of energy concerning:
The plant or equipment on which the investment credit is based must be completed and operational within 36 months of the date on which the investment credit was granted. If this 36-month period is not complied with, the amount of the investment credit granted to the company under the investment project in question shall be reduced by one per cent for each month exceeding the 36-month period. However, no reduction will be made from the amount of the investment credit if the company demonstrates that the delay was due to an unforeseen reason beyond the company's control, which the company could not have avoided by exercising due diligence.
The granting of the investment credit requires that the principle of “no significant harm” is observed in the implementation of the investment project
Investment credits are granted for investment projects that enable at least one of the following:
An industrial installation means:
If the investment project concerns the replacement of fossil fuels with renewable hydrogen or fuels produced from renewable hydrogen, the granting of tax credit requires that the use of fossil fuels in the industrial facility ceases and that the facility utilizes only renewable hydrogen or fuels produced from renewable hydrogen.
The plant or equipment on which the investment credit is based must be completed and operational within 36 months of the date on which the investment credit was granted. If this 36-month period is not complied with, the amount of the investment credit granted to the company under the investment project in question shall be reduced by 1 per cent for each month exceeding the 36-month period. However, no reduction will be made from the amount of the investment credit if the company demonstrates that the delay was due to an unforeseen reason beyond the company's control, which the company could not have avoided by exercising due diligence.
The investment credit shall not be granted on the basis of an investment which leads to an increase in the company's total production capacity. However, for technical reasons, such an increase in production capacity does not include an increase in capacity of up to two% compared to the situation prior to the investment.
Investment credit shall not be granted on the basis of an investment which merely fulfils the applicable European Union standards.
The following investments in sectors that are strategically strategic for the transition to a climate-neutral economy are eligible for the investment credit:
Equipment essential for the transition to a climate neutral economy means batteries, solar panels, wind turbines, heat pumps, electrolysis equipment and equipment for the capture, recovery and storage of carbon dioxide. Components refer to the components in accordance with the annex to Act. Critical raw materials mean critical raw materials referred to in Annex 4 to Commission Regulation (EU) No 651/2014.
The company is not entitled to an investment credit if:
The investment credit is applied for before the start of works of the investment project. Start of works means either the start of construction works relating to the investment or the first legally binding commitment to order equipment or any other commitment that makes the investment irreversible, whichever is earlier. Buying land and preparatory works such as obtaining permits and conducting preliminary feasibility studies are not considered as start of works.
The application period ends 29.8.2025. The application is submitted in Business Finland's online service.