New Investment Aid for High Efficiency Cogeneration

Last July 2016, Malta Enterprise issued incentive guidelines in respect of new investment aid for high efficiency cogeneration.

Aim of such investment aid is to assist undertakings that invest in co-generation equipment, energy efficient solutions that simultaneously generate thermal energy and electrical and/or mechanical energy. Assistance shall be granted inform of a tax credit calculated as percentage of the eligible costs. The percentage depends on the size of the entity:

  • 65% - Small
  • 55% - Medium
  • 45% - Large

Eligible costs

In respect of new equipment, the eligible cost shall be the extra investment costs for the equipment needed for the installation to operate as high-energy efficiency co-generation equipment, when compared to conventional electricity or heating installations of the same capacity. When it comes to upgrades of equipment, the eligible cost shall be the extra investment cost to upgrade the equipment to a higher efficiency when an existing installation already meets the high-efficiency threshold. The costs not directly linked to the achievement of a higher level of energy efficiency shall not be eligible. A minimum investment of €15,000 is required. 


Applicants must submit their application form prior to incurring any expenditure. Beneficiaries would need to  have the Incentive Entitlement Certificate  issued by the Corporation prior to buying any equipment. This incentive applies only to undertakings, including partnerships and companies, but not to individuals.

How Mazars can help

Our team of highly trained professionals can provide you with more information about your company’s eligibility for such investment aid and also assist you in the application process for such tax credit.

Contact us if you need further help or information.

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