Purposes and amount of the investment credit
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 (148/2025) on tax credits for certain large investments aiming at a climate neutral economy and on the website Tax credit for large clean transition investments.
Purpose of the investment credit for investments in low-carbon industrial production processes and energy efficiency measures
Investment projects eligible for investment credit for the production of energy from renewable sources and for the storage of energy concerning:
- energy production from renewable sources as defined in Article 2(1) of Directive (EU) 2018/2001 of the European Parliament and of the Council on the promotion of the use of energy from renewable sources, including the production of renewable hydrogen and fuels based on renewable hydrogen, but excluding electricity generation;
- storage of electricity or heat;
- storage of renewable hydrogen, biofuels, bioliquids, biogas, biomethane and biomass fuels when at least 75 per cent of the content stored is obtained annually from a production plant for renewable hydrogen, biofuels, bioliquids, biogas or biomass fuels directly connected to the storage.
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
Purpose of the investment credit for decarbonisation and energy efficiency investments
Investment credits are granted for investment projects that enable at least one of the following:
- direct greenhouse gas emissions from the company's industrial plant using fossil fuels as an energy source or raw material decrease by at least 40 per cent compared to the situation prior to the investment by electrifying production processes or by switching to renewable hydrogen or fuels produced from renewable hydrogen instead of fossil fuels;
- the energy consumption of the company's industrial plant in terms of activities supported by the investment credit will decrease by at least 20% compared to the situation prior to the aid.
An industrial installation means:
- for activities covered by the emissions trading scheme (ETS), a stationary technical unit in accordance with Article 3(e) of Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC;
- for investments not covered by the emissions trading scheme, a technical unit comparable to a stationary technical unit referred to in point 1.
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.
Purpose of the investment credit for investments in sectors strategic to the transition to a climate-neutral economy
The following investments in sectors that are strategically strategic for the transition to a climate-neutral economy are eligible for the investment credit:
- investments in the production of equipment essential for the transition to a climate neutral economy;
- investments in the production of components directly intended for the manufacture of the equipment specified in paragraph 1 and primarily used therein; or
- investments in the production or recovery of critical raw materials needed for the production of the equipment and components specified in paragraphs 1 and 2.
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 (148/2025). Critical raw materials mean critical raw materials referred to in Annex 4 to Commission Regulation (EU) No 651/2014.
Restrictions on the scope of the investment credit
The company is not entitled to an investment credit if:
- the company or group to which it belongs is a firm in difficulty within the meaning of Commission Communication 2014/C 249/01 on State aid for rescuing and restructuring firms in difficulty outside the financial sector;
- the company or group to which it belongs has been issued an outstanding recovery order based on a previous Commission decision declaring the aid unlawful and incompatible with the internal market;
- the company or group to which it belongs is a credit institution or other financial institution;
- the company, the group to which it belongs, the owner of the company or group, or the party exercising effective control over the company or group is on the European Union's sanctions list.
Applying for an investment credit
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.
