Kevin Grün
October 18, 2024
The Growth Opportunities Act 2024 (Germany) creates new incentives for companies to invest in technologies that enhance energy efficiency. A crucial component of this law is the special depreciation, which is particularly attractive for companies that invest in the ESO® system (Electronic Power Optimization). The ESO® system not only reduces energy consumption but also offers long-term cost savings — a combination that becomes even more lucrative thanks to the Growth Opportunities Act.
The Growth Opportunities Act was introduced to strengthen the competitiveness of businesses and encourage them to invest in modern technologies. A key feature of the law is the special depreciation for investments in energy efficiency. Companies can write off up to 40% of acquisition costs in the first year. This makes investments in future technologies like the ESO® system especially attractive.
The Growth Opportunities Act offers tax benefits for energy efficiency investments to promote business competitiveness and the adoption of modern technologies. The Special Depreciation allows companies to write off up to 40% of acquisition costs in the first year.
The ESO® system helps businesses optimize energy consumption and save on costs in the long term. Energy-intensive industries, in particular, benefit from the combination of energy savings and tax advantages.
The ESO® system helps companies optimize their energy consumption by reducing reactive power and minimizing voltage fluctuations in the power grid. As a result, both energy consumption and energy costs decrease — on average by 8-12%. Energy-intensive industries such as manufacturing or the service sector particularly benefit from these savings.
With the new special depreciation under the Growth Opportunities Act, investing in the ESO® system becomes even more attractive: 40% of the system's costs can be claimed for tax purposes, significantly easing company liquidity.
For more information on special depreciation, visit the website of the Federal Ministry for Economic Affairs and Climate Action
The combination of the ESO® system and the benefits of the Growth Opportunities Act offers companies a unique opportunity to increase their energy efficiency while also benefiting from significant tax advantages.
The immediate depreciation of up to 40% of acquisition costs provides an immediate relief to a company's liquidity. At the same time, the energy savings achieved through ESO® ensure a sustainable reduction in ongoing operating costs.
In the long term, this combination leads to a significant improvement in competitiveness. The investment in ESO® not only pays off more quickly but also helps companies prepare for future challenges in an increasingly energy-conscious market environment.
A concrete example demonstrates how the Synergy of ESO® and the Growth Opportunities Act can help companies significantly reduce their energy costs.
To make the benefits of this synergy tangible, let's look at a specific case: A medium-sized company invests €10,000 in an ESO® system. Through the special depreciation of 40%, the company can claim €4,000 for tax purposes in the first year. Assuming a tax rate of 30%, these results in a tax saving of €1,200.
In addition to this tax benefit, the company benefits from the energy savings provided by ESO®. With annual energy costs of €40,000 and an average saving of 10%, energy expenses are reduced by €4,000 per year. Thus, in the first year alone, the total savings amount to €5,200 — a significant sum that largely refinances the investment.
In addition to the immediate tax benefits, the ESO® system also provides long-term energy savings, reducing operating costs and increasing competitiveness.
By optimizing power consumption, companies can reduce their energy costs by an average of 8-12%. Combined with the special depreciation, this means that the investment in ESO® not only pays off faster but also reduces operating costs and increases competitiveness in the long term.
Additionally, the Growth Opportunities Act supports the transition to environmentally friendly and climate-friendly technologies, providing an extra bonus for companies focused on energy efficiency and sustainability.
To fully benefit from these advantages, a structured approach to implementing the ESO® system is recommended.
First, companies should conduct a thorough analysis of their current energy consumption. Based on this, a well-informed consultation on the specific savings potential through ESO® can be carried out. The tax benefits for the company should then be calculated in detail to allow for a comprehensive view of the investment.
With this information, business decision-makers can make an informed choice for a future-proof investment. Implementing ESO® in combination with the benefits of the Growth Opportunities Act not only represents an investment in the company's competitiveness but also a significant step towards a more sustainable and efficient economy.
Contact us to learn more about the ESO® system and the tax benefits!
The Growth Opportunities Act, in combination with the ESO® system, offers companies a unique opportunity to increase their energy efficiency while also benefiting from significant tax advantages. Now is the ideal time to invest in a sustainable and cost-efficient future. By taking advantage of these synergies, companies can not only reduce their operating costs and improve their liquidity but also make an important contribution to climate protection.
The time to act is now. Invest in ESO®, leverage the Opportunities of the Growth Opportunities Act, and position your company as energy-efficient, cost-conscious, and future-oriented. It's a step that pays off in many ways — for your company, for the environment, and for a sustainable economy.
