Green tax incentive for business transition

Companies in Denmark can now receive a tax rebate when investing in climate-friendly production changes over the next two years, following an agreement on the enactment of the green tax reform. The reform allows for an increased depreciation basis of 108 percent for climate investments until 2027, enabling businesses to deduct eight percent more in tax than the cost of their green investments. This could include, for instance, converting a gas-powered factory to electric. A total of 1.1 billion Danish kroner has been allocated for this rebate. The measure, which provides a financial incentive for the transition before the introduction of a CO2 tax on industrial emissions, was agreed upon by the government and parties like Green Left, Conservative Party, and Danish Social Liberal Party. The agreement aims to facilitate the economic burden of transitioning for the Danish business sector.