According to Act LXXXI of 1996 on Corporate Tax and Dividend Tax, taxpayers may claim tax relief for the installation and operation of investments and renovations for energy efficiency purposes in the tax year following the installation of the investment or renovation - or, at their discretion, in the tax year of the installation of the investment or renovation - and in the five tax years thereafter.
The eligible tax relief depends on the geographical location (Budapest or other location) and the size of the enterprise (small, medium, large).
The relief is available for a wide range of energy efficiency measures (modernisation of boundary structures, thermal insulation, replacement of windows and doors, modernisation of lighting, replacement of boilers, use of renewable energy sources (except solar panels), etc.), thus significantly improving the return on investment in some cases.
The "Decree 176/2017 (4 July 2017) of the Government on the Rules for the Implementation of the Tax Benefit for Energy Efficiency Investments" stipulates that in the case of energy efficiency investments, two energy audits are required, one before the investment and one after the investment. The audit shall show the final annual energy savings. The certificate may be issued by an energy auditor or energy auditing organisation registered with the Hungarian Energy and Public Utilities Regulatory Office at the request of the taxpayer.
Our company has contributed to the energy efficiency improvements of its partners by carrying out several successful TAO audits, such as boiler replacement projects, lighting modernisation projects or the installation of liquid chillers with free cooling.