Government Proposes Extension of Tax Support for Clean Transition Investments

• Finland plans to extend the temporary tax credit for clean transition investments, allowing new applications until the end of 2027.
• The credit is intended to promote large electricity-intensive industrial investments and support clean industry development in Finland, based on EU state aid rules (CISAF).
• Eligible projects include renewable fuel production, long-duration electricity and heat storage, industrial emissions and energy-use reduction, and clean technology manufacturing capacity.
• The minimum investment remains EUR 50 million, though some decarbonization investments may have a lower threshold at programme level; no fixed euro minimum applies to fuel production and storage projects due to state aid rules.
• The credit equals up to 20% of eligible investment costs, capped at EUR 150 million per company or group (15% for some clean tech manufacturing projects), and is deducted from corporate income tax starting no earlier than the year the investment is completed, and not before 2029.

Source: vm.fi

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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