Relief measures from NEHG (Austrian National Emissions Certificates Trading Law) for energy-intensive businesses and carbon leakage

Since 1 October 2024 there is the option to apply via NEIS for the relief measures for energy-intensive businesses and businesses at risk of carbon leakage for the years 2022 and 2023. The application is to be filed until 30 November 2024. The option to partial refund of the paid NEHG tax is intended to counteract the loss of competitiveness or the relocation of production and related emissions abroad because of the NEHG tax.

Scope

As of 1 October until 30 November 2024 an application for the relief from the NEHG tax can be made for the years 2022 and 2023. The following businesses are covered:

• Agriculture and forestry businesses
• Energy-intensive businesses and businesses at risk of carbon leakage

Businesses, whose paid energy taxes and costs of the NEHG tax exceed 0.5% of the net production value of the financial year applied for, are considered as energy-intensive businesses. Note that only the costs for energy resources used for heating purposes can be refunded.

According to section 24 para. 1 NEHG, energy-intensive businesses are exempted of at least 45% of the tax burden from the NEHG. According to annex 2 NEHG, businesses, which are active in economic sectors exposed to a significant risk of carbon leakage, will be exempted between 60% and 95% from the burden from the NEHG.

Note that the refunded NEHG tax has to be reinvested in climate protection measures.  In the introduction phase, this means for periods until the end of 2024, only 50% of the refunded amount must be reinvested in climate protection measures; for the transition phase, this means for periods as of 2025, at least 80% of the refunded amount has to be reinvested in climate protection measures.

Minimum content of the application

The application for the relief measures for energy-intensive businesses and businesses at risk of carbon leakage, must be filed via the NEIS-system and must contain the following information in particular:

• Disclosure of the requested relief measure
• Name and address of the applicant (relief measure participant)
• of the business for which the application is requested
• Burden from the NEHG for the application period
• Verification of the eligibility to file an application for the relief measure
  • calculation of the energy intensity (net production value)
  • allocation to an economic sector or subsector, if there is an economic sector exposed to a significant risk of carbon leakage according to annex 2 and
• an auditor’s report of a tax advisor, an auditor or an accountant.

In practice

As an auditor’s report of a tax advisor, an auditor or an accountant is necessary for the application, we recommend getting in contact on time.

We are happy to support you with our expertise.