Investment tax credit - Öko-IFB regulation finally published

The modernized Investment Tax Deduction (IFB - see also KI 04/23) provides for an increased IFB of 15 % for the purchase or production of climate-friendly business assets of the depreciable fixed assets – namely when the investment stems from the area of greening. At the end of May 2023, the final version of the Öko-IFB Ordinance was published, which contains details regarding those environmental business assets for which the higher IFB can be claimed. Temporarily, the Ordinance applies to purchases or productions that take place after December 31, 2022.

Compared to the draft review, the following significant changes have been made to the Öko-IFB Regulation:

• The Öko-IFB 15 % is now also available for hydrogen refueling stations (both publicly and privately accessible). The prerequisite for this is that the hydrogen available is exclusively derived from renewable energy sources to power fuel cell vehicles.
• The final version of the regulation also includes commercial products for the production of biomethane. What is new is that the Öko-IFB is also entitled to a share of the costs of purchasing and producing the products, provided that registration in the source data bank is completed at the time of completion.
• The Öko-IFB 15 also % stands for economic goods for the production of hydrogen from renewable sources.
• The final version of the Öko-IFB Regulation also includes the possibility of plausibilization by the taxpayer themselves. Until now, in cases where no subsidy is granted, the tax office has been able to rely on an assessment by qualified third parties (for example, civil engineers) to determine whether the corresponding investment falls within the scope of the ecological upgrading, or to allow a plausibilization to be performed at the taxpayer’s request. The plausibilization by the taxpayer themselves is limited to acquisition or production costs of no more than €50,000. Upon request of the tax office, it must then be demonstrated that the requirements for the Öko-IFB were met at the time of acquisition or production.

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