Denmark’s Ministry of Taxation has introduced Bill L 195 on 9 April 2025 to establish a temporary increase in the depreciation basis for certain new green assets, as part of the green investment window linked to the Agreement on Green Tax Reform.
The bill would allow businesses and self-employed individuals to apply a 108% depreciation rate on the cost of eligible new assets acquired between 1 January 2025 and 31 December 2026, provided they are used exclusively for business purposes. Excluded from this incentive are expenses related to passenger cars, ships, software, and machinery powered by fossil fuels.
The eligible asset categories align with those under section 5 D of the Danish Depreciation Act, which provides a similar incentive between 2020 and 2022. The bill is scheduled to take effect the day after its publication in the Official Gazette.
Earlier, the Denmark Ministry of Taxation announced a newly agreed framework for the Green Investment Window is a step toward strengthening Danish businesses in their shift toward a more sustainable economy on 30 January 2025.
