Loan
Updated: 09.01.2019
Author: Stijn Anciaux
A tax benefit exists for consumers who invest or put their savings in a green fund. This enables the banks to offer loans at lower interest rates to ‘green’ projects. For a project to qualify for such a loan it should apply for a declaration on the basis of the Regulation Green Projects 2016. In general projects, which positively affect the environment, can apply for this declaration. The declaration is valid for 10 or 15 years depending on the application (art 16. 1. (a) & (d) RGP 2016).
Eligible technologies
All RES-E technologies except biomass and biogas are eligible.
Wind energy | Wind energy is eligible (art.7.c., RGP 2016) |
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Solar energy | PV is eligible (art.7.d., RGP 2016) |
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Geothermal energy | Eligible (art.7.f., RGP 2016) |
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Hydro-power | Hydropower is eligible (art.7.g., RGP 2016) |
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Amount
In practice the declaration on the basis of RGP 2016 will result in a reduction of the interest rate in the order of 1%. Minimum project costs are € 25,000 (art.15. 1. (e), RGP 2016) unless the project is related to art. 7.d. & e. or art. 8.a. RGP 2016.
Addressees
Entitled party: Any investor in ‘green’ projects is entitled to the tax benefit on the basis of RGP 2016, provided the project has a declaration stating that it qualifies for the label green project.
Procedure
Process flow | - The investor applies for a loan on the basis of RGP 2016 at a bank which manages a green fund
- The bank applies for a green project declaration at the Netherlands Enterprise Agency
- The Netherlands Enterprise Agency reviews the application on behalf of the Ministry of Infrastructure and Water Management
- If successful, the declaration will be granted by the reviewing agency to the bank and the investor Now, the bank can offer the loan at a reduced interest rate
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Competent authority | ‘Dienst Regelingen’ and ‘Rijksdienst voor Ondernemend Nederland - NL Milieu en Leefomgeving’ |
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Distribution of costs
State | The State receives less income from capital and income tax. |
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