Sweden has amended tax reduction rules for green technology installations, effective 1 July 2025. 

Sweden’s government has published Law No. SFS 2025:541 in the Official Gazette on 28 May 2025.

This legislation amends the tax reduction rules on the installation of green technology.

The key provisions of this law are:

  • The law caps the tax reduction payment a contractor can request from the tax authority.
  • The payment will be deducted directly from the buyer’s invoice and is limited to three-seventeenths of the amount paid by the buyer.
  • The payment can be equivalent to the difference between the charged amount for green technology installation (including VAT) and the buyer’s actual payment to the contractor before the request was made.
  • Payments are prohibited if the buyer’s total preliminary tax deduction is over SEK 50,000 in a tax year.

The amendments take effect on 1 July 2025 and apply to payments made in full after 30 June 2025.