Request for comments
Proposal to extend tax credit for clean transition investments

The tax credit would encourage companies to carry out major investments in industries and technologies that reduce dependence on fossil fuels and promote the clean transition. The Ministry of Finance is requesting comments on the proposal.

The tax credit for clean transition investments was adopted in 2025 as a temporary form of support. The Government is proposing that this tax credit to support investments be extended to the end of 2027.

The extension of the tax credit is based on the Clean Industrial Deal State Aid Framework adopted by the European Commission in the summer of 2025 to support clean industry, the economy and the clean transition in EU Member States.

Tax credit to support sectors and technologies vital to the clean transition

Projects could be eligible if they relate to:

• the production of biofuels, biogas and renewable low-carbon synthetic fuels or to the long-term storage of electricity and heat;
• the decarbonisation of industrial operations; or
• the production of clean technology end products and their key components as well as of critical raw materials.

The minimum investment size would remain EUR 50 million. In the case of industrial decarbonisation investments, it would be possible to count an investment programme consisting of multiple individual investments towards the minimum investment size. State aid rules mean that the euro limit would not be applied to fuel production and energy storage projects.

Support in the form of a tax credit

The amount of the tax credit would be 20 per cent of the eligible investment costs, but no more than EUR 150 million per company or group of companies. For some net zero technology investments, state aid rules would cap the credit at 15 per cent.

Companies could first use the tax credit in the year when the investment is completed, but no earlier than in 2029.

The conditions for granting and using the tax credit would remain largely unchanged. 

Public consultation underway

The Ministry of Finance requests comments on the government proposal. Comments may be submitted until 19 June.

Prior notification of the introduction of the tax credit was submitted to the European Commission. The Commission must find the credit compatible with the single market before it can enter into force. Discussions are ongoing with the Commission. The details of the tax credit may change and be refined as these discussions proceed.

Inquiries:
Laura Puro, Senior Specialist, tel. +358 295 530 127, laura.puro(at)gov.fi