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Ground rent tax for wind power

Agreement on ground rent tax for wind power in the Norwegian Parliament

After hearing, the Norwegian government settled  a new proposal for ground rent tax. As a result of the consensus in the Parliament, further changes are now being made. 

Changes in the draft law after the consensus in the Parliament

  • The effective tax rate is set to 25%.
  • For new power plants, a payment scheme for negative ground rent income is introduced when they are put into operation, and the Tax Administration has conducted a review of the determined tax. In the meantime, negative ground rent income is carried forward with interest. The introduction requires the approval of this scheme by the EEA.
  • For existing power plants, the entry value receives a 40% markup compared to the government`s original proposal. However, the entry value cannot be higher than 85% of the historical cost of investments. The entry value is written off linearly against the ground rent tax over 5 years.
  • The settlement does not entail changes in the production levy.

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