Government announces tax incentives for large businesses to go green
Tax incentives have been announced for larger businesses aimed at encouraging them to adopt more energy efficient practices, thereby becoming more sustainable without compromising competitiveness.
The announcement was jointly made by Energy Minister Joe Mizzi and Economy Minister Chris Cardona. The Water and Electricity Agency, falling under Mizzi’s ministry, and Malta Enterprise, under Cardona’s ministry, will jointly be assessing and administering the scheme.
The aid awarded through this measure will come in the form of a tax credit which may be utilised against tax payable by the beneficiary.
Minister Mizzi stated that this scheme was the second step following the launch of an energy audits scheme earlier this month, whereby enterprises are now assisted in implementing audit recommendations. He added that this scheme, which complements others such as Micro-Invest, is intended to be accessible to a variety of industries. This includes hotels, service-providers and factories interested in investing in energy efficiency.
The scheme covers: investment in substitution or upgrading of equipment and installations to reduce energy consumption in manufacturing processes; Renovation or upgrading of equipment of existing installation for heating or cooling systems in the industrial hotel sector; The improvement of energy efficiency of existing illumination systems; Any other action not contemplated in the abovementioned wh ich is expected to achieve energy saving of at least of 20%.
Eligible enterprises are those in manufacturing, repair, overhaul or maintenance of aircraft, industrial electromechanical equipment, information hosting and/or processing, waste industrial packaging, telecommunication, and laundry and dry cleaning.
Minister Cardona noted how such incentives encourage businesses to adopt a more sustainable and environment-friendly measures.
“Competitiveness and sustainability are inherent, with sustainable companies being the future. Progressive companies use their environmental strategy not only to save, but to innovate, create value and build a competitive advantage, with endless opportunities and products,” said Minister Cardona.
Besides direct financial gains, Minister Mizzi stated that schemes would also contribute to economic growth, employment, and a cleaner and more secure supply of energy.