Global Daily Tax News, Denmark To Expand Green Technology Tax Perks, (Oct 17, 2025)

The Danish Government has tabled draft legislation for the introduction of a number of green technology tax incentives.

Bill L 25, which will be subject to first reading in parliament on November 4, provides for various measures, including:

• Expanding the existing scheme for the refund of electricity tax when charging electric cars to also companies that offer charging facilities;

• Temporarily reducing the volume-based packaging tax to zero in 2026 and 2027, to offset a larger-than-expected increase to the producer fee;

• Exempting pure biofuels, regardless of use, from the carbon dioxide tax;

• Expanding the possibility of reimbursement of electricity tax for electricity used as traction power for electric trains for freight transport;

• Exempting certain buses from registration tax when used to transport residents to scheduled activities, even when the resident is not elderly;

• Amending the Fuel Consumption Tax Act to provide that a person with reduced functional capacity can obtain exemption from green ownership tax when acquiring a zero-emission car; and

• Expanding access to information in the Vehicle Register for valuation organizations.

The legislation would become effective from January 1, 2026.