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Tax deduction for energy saving investments in residential buildings


A certain percentage of energy saving investments could be deducted from the income tax. This percentage used to be 40% with an absolute ceiling of a couple thousand euro's. However, from the 1st of January 2012, only expenses for roof isolation were covered by a tax deduction. In 2017, this tax deduction for roof isolation was also abolished.


In the period 2006-2013, tax reductions for energy saving investments amounted to more than three billion EUR. In 2012, 20% of people who declared income taxes made use of this provision. The provision was mostly used by home-owners; usage was very limited for rented houses. In addition, the provision was predominantly used by people with higher incomes. This makes the effect of the measure on reducing energy poverty questionable.