Environmental list 2020 provides a nice incentive for AM in the Netherlands
Great news for Additive Manufacturing in the Netherlands. Starting from 2020, 3D printers are in certain cases eligible for the investment deduction for environment-friendly investments. From now on, 3D printers are listed on the Dutch Environmental List as equipment with reduced consumption of raw materials. Entrepreneurs who wish to invest in 3D printers can therefore benefit from the 36% Environmental Investment Deduction (Milieu-investeringsaftrek, MIA). In addition, they can depreciate 75% of their investment at any time (Vamil). Both are subject to approval – the investment may not be 100% covered at the time of submission and the reduced use of raw materials must be demonstrated.
In the Netherlands a system exists to stimulate investments in environment-friendly assets. On the one hand, they have the Environmental Investment Deduction (Milieu-investeringsaftrek, MIA) and, on the other, the Depreciation of Environmental Investments (Vamil). Vamil allows companies to depreciate 75% of an investment at any time. How quickly or slowly you depreciate is up to you. This arrangement gives you a liquidity and interest advantage. With MIA, companies can benefit from an extra deduction option from the taxable profit. This applies on top of the other tax deduction possibilities such as voluntary depreciation. If an asset qualifies for the MIA, 13.5%, 27% or 36% of the investment amount may be charged extra to the profit for the calendar year in which this asset was purchased. This reduces the amount of tax you pay. All assets that qualify for the MIA/Vamil can be found on the Environmental list.
Compared to last year, 50 new assets have been included on the Environmental List 2020 and from now on this list also offers a very nice incentive for Additive Manufacturing in the Netherlands. As of 2020, 3D printing is also eligible for the MIA/Vamil for equipment with reduced raw material consumption. According to the RVO site “equipment that is technically necessary to reduce the consumption of raw materials, with the exception of equipment to reduce water consumption and 3D printers in dental practices” is eligible. “Examples of equipment for the reduction of raw material consumption are […] 3D printers (excluding application in dentistry), […]. This means that 3D printers (except those for use in dentistry) fall under the company asset code F 1200, allowing you as a company to enjoy 36% MIA + Vamil.
By means of the MIA/Vamil arrangements, the Dutch government wants to facilitate the market introduction and market expansion of innovative and environment-friendly technologies. The inclusion of such a technology on the Environmental List lowers the financial threshold for entrepreneurs who want to work with the innovative technique. After all, they will then be able to apply for the MIA/Vamil. For 3D printing in the Netherlands, this can certainly be a nice boost.
Want to know more? All detailed information about the MIA/Vamil can be found here.