Parliament approved a temporary increase in the investment allowance for ecological assets between November 2025 and December 2026.
The Austrian National Council (Nationalrat) approved a draft bill, on 15 October 2025, introducing a temporary increase in the investment allowance.
The bill amends the Income Tax Law of 1988 by adding a new item, Z 480 to § 124b, which establishes the increased investment tax allowance.
The allowance applies to acquisition or production costs incurred between 1 November 2025 and 31 December 2026.
Under the amendment, the standard investment allowance of 20% of eligible costs is increased to 22% for assets linked to ecological measures.
The amendment also outlines rules for calculating the allowance when acquisitions are completed after the specified period and for managing costs incurred in November and December 2025 that exceed a proportionate maximum.
