The application period for the tax credit has ended, the refund is no longer available for application.

A company that implements a major investment in Finland aimed at a climate-neutral economy with eligible investment costs of at least EUR 50 million is entitled to the investment credit.

The investment credit is granted by Business Finland. The compensation must be applied for from Business Finland before the start of the work on the investment project.

When to apply for an investment credit

General conditions for granting an investment credit

The right to an investment credit is granted upon application to a company that implements an investment that meets the conditions specified in the Finnish Act (148/2025) on the tax credit for certain large investments aimed at a climate-neutral economy:

1. energy production from renewable sources and energy storage;
2. decarbonisation of industrial production processes and energy efficiency measures; or
3. sectors that are strategic for the transition to a climate-neutral economy.

What is required of your company

A company is not a company in difficulty.

An investment rebate cannot be granted to a company which has been issued with an outstanding recovery order based on a previous Commission decision declaring the aid unlawful and incompatible with the internal market.

A company is not entitled to an investment credit if the company or group to which it belongs is a credit institution or other financial institution.

The investment credit cannot be granted if the company, the group to which it belongs, the owner of the company or group or the party exercising effective control over the company or group is on the European Union's sanctions list.

What kind of investments are rebate granted for?

Investments in energy production from renewable sources and energy storage

Investment projects for the production of energy from renewable sources and energy storage that concern:

1. energy production from renewable sources, as defined in Article 2(1) of Directive (EU) 2018/2001 of the European Parliament and of the Council on the promotion of the use of energy from renewable sources, including the production of renewable hydrogen and renewable hydrogen-based fuels; but excluding electricity generation;
   
   
2. electricity storage or heat storage;
   
   
3. the storage of renewable hydrogen, biofuels, bioliquids, biogas, biomethane, and biomass fuels, when at least 75 per cent of the stored content is obtained annually from a renewable hydrogen, biofuel, bioliquid, biogas or biomass fuel production plant directly connected to the storage.

The facility or equipment on which the investment is based must be completed and operational within 36 months from the date on which the investment credit is granted. If this 36-month deadline is not met, one per cent of the investment credit granted to the company on the basis of the investment project in question will be deducted for each month exceeding the 36-month time limit. However, no deduction will be made from the amount of the investment credit if the company can prove that the delay was caused by an unforeseen reason beyond the company's control, which the company could not have avoided by exercising due care.

In addition, where the investment concerns the production of renewable hydrogen or renewable hydrogen fuels, the granting of the investment credit requires that the hydrogen and hydrogen-derived fuels are produced from renewable energy sources in accordance with the non-renewable energy requirements laid down in the Renewable Energy Directive, its implementing acts or delegated acts. renewable liquid and gaseous transport fuels of biological origin.

In addition, if the investment concerns the production of biofuels, bioliquids, biogas, biomethane or biomass fuels, the granting of the investment credit is subject to the condition that the fuels produced comply with the requirements of the Renewable Energy Directive, its implementing or delegated acts and the sustainability criteria and greenhouse gas emissions. auml; criteria.

For an investment in renewable energy production or storage, the applicant shall demonstrate that the implementation of the investment project complies with the 'do no significant harm' principle (DNSH principle). The activities are considered to cause significant harm

1. climate change mitigation if it causes significant greenhouse gas emissions;
2. adaptation to climate change, if it increases the adverse impact of the current climate and the expected future climate on those activities or on people, nature or property;
3. the sustainable use and protection of water and marine resources, where this undermines the good status or good ecological potential of water bodies, including surface waters and groundwaters, or, in the case of marine waters, the good environmental status;
4. circular economy, including waste prevention and recycling, if it causes significant inefficiencies in the use of materials or in the direct or indirect use of natural resources, or if it significantly increases the generation, incineration or disposal of waste, or if the long-term disposal of waste may cause significant inefficiencies.long-term harm to the environment;
5. the prevention and reduction of environmental pollution if it significantly increases emissions of pollutants into the air, water or soil;
6. the protection and restoration of biodiversity and ecosystems where it significantly undermines the good status and resilience of ecosystems or the conservation status of habitats and species, including habitats and species of interest to the Union.
   DNSH Question Response Guidelines and Examples 

Extensive DNSH preliminary assessments can be found in Appendix 3 of Finland's Sustainable Growth Programme (especially the section Transformation of the energy system, starting from page 427). According to the Finnish Environment Institute, the assessment methods developed for the Sustainable Growth Programme can also be applied to other projects that require DNSH assessments.

Investments in decarbonisation of industrial production processes and energy efficiency measures

An investment project that enables at least one of the following is eligible for the investment credit:

1. Direct greenhouse gas emissions from the company's fossil fuel-based industrial plant as an energy source or feedstock will be reduced by at least 40 per cent compared to the situation before the investment through the electrification of production processes or the transition to renewable hydrogen or renewable hydrogen. fuels instead of fossil fuels;
   
   
2. The energy consumption of the company's industrial plant will be reduced by at least 20 per cent for the operations supported by the investment credit compared to the situation prior to the subsidy.

The reduction in direct greenhouse gas emissions is measured on the basis of the average direct greenhouse gas emissions of the five calendar years preceding the application for investment credit entitlement. When looking at the reduction in direct greenhouse gas emissions, the actual greenhouse gas emissions from biomass combustion are also taken into account.

The reduction in energy consumption is measured on the basis of the average energy consumption during the five calendar years preceding the application for investment credit entitlement.

For investments related to activities covered by the ETS, the investment must lead to a reduction in greenhouse gas emissions from the company's industrial plant below the reference values of the free allocation.

If the investment project concerns the replacement of fossil fuels with renewable hydrogen or fuels produced from renewable hydrogen, the granting of the investment credit requires that the use of fossil fuels in the industrial plant ceases and the plant uses only renewable hydrogen or fuels produced from renewable hydrogen.

The facility or equipment on which the investment is based must be completed and operational within 36 months from the date on which the investment credit is granted. If this 36-month deadline is not met, one per cent of the investment credit granted to the company on the basis of the investment project in question will be deducted for each month exceeding the 36-month time limit. However, no deduction will be made from the amount of the investment credit if the company can prove that the delay was caused by an unforeseen reason beyond the company's control, which the company could not have avoided by exercising due care.

The investment credit is not granted on the basis of an investment that leads to an increase in the company's total production capacity. However, such an increase in production capacity does not include an increase in capacity of no more than two per cent compared to the situation prior to the investment, which is necessary for technical reasons.

An investment credit is not granted on the basis of an investment that is solely concerned with meeting the applicable European Union standards.

If the investment project concerns the decarbonisation of industry involving the use of renewable hydrogen, the granting of the investment credit is subject to the condition that the hydrogen used is produced from renewable energy sources in accordance with the Renewable Energy Directive and its implementing acts or delegated acts.renewable liquid and gaseous transport fuels of non-biological origin.

If the investment concerns the decarbonisation of industry involving the use of renewable hydrogen fuels, those fuels shall meet the following requirements:

1. they are liquid and gaseous fuels produced from renewable hydrogen with an energy content derived from renewable sources other than biomass;
   
   
2. achieve life-cycle greenhouse gas emission reductions of at least 70 % compared to a fossil reference point of 94 g CO2eq/MJ; and
   
   
3. they have been produced for renewable liquid and gaseous transport fuels of non-biological origin in accordance with the methodologies set out in the Renewable Energy Directive and its implementing acts or delegated acts.

Investments in strategic sectors for the transition to a climate-neutral economy

The following investments in strategic sectors for the transition to a climate-neutral economy are eligible for the investment credit:

1. investments in the production of equipment essential for the transition to a climate-neutral economy;
   
   
2. investments in the production of key components directly intended for the manufacture of the equipment specified in paragraph 1 and primarily used therein; or
   
   
3. investments in the production or recovery of critical raw materials necessary for the production of equipment and components as defined in points 1 and 2.

In point 1, equipment essential for the transition to a climate-neutral economy means batteries, solar panels, wind turbines, heat pumps, electrolysers and carbon capture, utilisation and storage equipment. The components mentioned in section 2 refer to components in accordance with the Act on Investment Credits (148/2025). The critical raw materials referred to in point 3 refer to the critical raw materials referred to in Annex 4 to Commission Regulation (EU) No 651/2014.

Granting an investment credit requires that:

1. the investment is kept at the location of the investment for at least five years after the completion of the investment;
   
   
2. there is a concrete risk that the investment will not materialise in the EEA;
   
   
3. The company or group of companies to which it belongs does not transfer to Finland from another EEA country the same or similar production activities on the basis of which the investment credit is granted during the period commencing from the application for the investment credit and ending two years after the completion of the investment.

An investment credit will not be granted if the company or group of companies to which it belongs has, during the two years preceding the application for the investment credit, transferred the same or similar production activities to Finland from another EEA country for which the investment credit is being applied for.

Acceptable costs

Investments in energy production from renewable sources and energy storage: The costs accepted as the basis for the investment credit are the costs of the investment project to the extent that the costs are allocated to the construction of new capacity or the upgrading of the power plant's capacity. If the investment project is related to upgrading the capacity of the power plant, only the additional costs related to the upgraded capacity are eligible as grounds for the investment credit.

Investments in decarbonisation of industrial production processes and energy efficiency measures: The eligible costs of the investment rebate include the costs of equipment, machinery and plants required for electrification, the transition to hydrogen or hydrogen-based fuels, and the improvement of energy efficiency, as well as other investment costs.

Investments in strategic sectors for the transition to a climate-neutral economy: Eligible costs for the investment credit include the costs of the investment project related to tangible assets needed for the production or recovery of assets, such as land, buildings, factories, equipment, machinery, and intangible assets, such as patent rights, licences, know-how or other intellectual property.

The eligible costs and the terms and conditions of purchases made within the Group and from associated companies are described in more detail in section 8 of the terms and conditions of the investment credit. A link to the terms and conditions will be published when the funding is available for application. 

There are no acceptable costs

• Wages
• Overheads
• entertainment expenses
• interest and other financing costs
• Fees based on the Act on Criteria for Charges Payable to the State and fees based on special fee legislation
• Cost provisions
• travel expenses paid or reimbursed by the company entitled to the investment credit;
• VAT paid by the undertaking entitled to the investment credit as part of the purchase price of the goods or services.

Amount of the investment rebate

The amount of the investment credit is 20 per cent of the costs accepted as the basis for the investment credit. The maximum amount of the investment bonus is EUR 150 million per company. If the company is part of a group, the maximum amount of the investment bonus is calculated for each group.

Reduction and accrual of the investment credit

Based on the company's euro-denominated claim, the investment credit will be deducted from the company's income tax in the tax year beginning during the company's calendar year 2028 and in the following 19 tax years. However, the investment credit can be deducted at the earliest in the tax year during which the investment is completed. The investment credit is deducted from corporate income tax after foreign tax credits.

However, the investment credit can be deducted by a maximum of ten per cent of the total amount of the investment credit granted to the company in each tax year.

Before you apply

Before applying for an investment credit, carefully read the terms and conditions and the Act (148/2025). 

Apply for an investment credit

The compensation will be applied for from Business Finland before the start of the work on the investment project.
The commencement of work on an investment project refers to the commencement of construction work related to the investment or the first legally binding commitment to order equipment or other commitment that makes the investment irreversible, whichever occurs earlier. The purchase of land and preparatory work, such as obtaining permits and carrying out preliminary feasibility studies, will not be considered as the start of the works.

More info on

Business Finland's contact persons

Sini Uuttu 
sini.uuttu (at) businessfinland.fi and

Hanna Rinta-Erkkilä
hanna.rinta-erkkila (at) businessfinland.fi