On Friday 10 October in Luxembourg, European finance ministers approved conclusions on tax incentives to promote clean technologies and industry as part of the ‘Clean Industrial Deal’.
Published in July (see EUROPE 13588/1), the European Commission’s communication on this ‘Deal’ aims to support industrial decarbonisation and make the EU a competitive and attractive location for manufacturing. The Commission is proposing to use tax incentives to stimulate clean industry in the form of targeted tax credits and accelerated depreciation. It recommends that these incentives respect certain general principles, in order to ensure that these measures are cost-effective, simple and timely.
In their conclusions, the European ministers welcomed this recommendation. They invite the Commission to consider new measures to help Member States implement and apply these tax incentives. However, they recognise that Member States have different company tax systems and approaches.
The ministers also stressed that flexibility in the implementation of tax incentives is essential. They stress that Member States are free to design, implement and apply tax incentives according to their particular circumstances, taking into account the potential budgetary implications.
Finally, the Council encourages Member States, with the support of the Commission, to evaluate, where appropriate, the effectiveness of the incentives they have implemented and to exchange best practice with other Member States.
Link to the conclusions: https://aeur.eu/f/ivu (Original version in French by Anne Damiani)