TAO tax incentive
for industrial battery storage
Under §22/H of the Hungarian Corporate Tax Act, the cost of an electricity storage investment can be claimed as a tax incentive — over 6 years from commissioning. Combined with the Jedlik Ányos grant, the aid intensity can be maximised.
§22/H
section of the TAO Act
6 years
claim period
30 M€
maximum incentive
9%
TAO rate it is deducted from
About the incentive
What is the TAO incentive for electricity storage?
Since 1 January 2024, §22/H of Act LXXXI of 1996 on Corporate Tax has provided a new tax incentive for investments that create electricity storage. Its aim is to encourage businesses to build energy storage capacity for their own use.
The incentive can be deducted from the corporate tax payable in the tax year in which the investment is commissioned (or, at the taxpayer’s choice, in the following tax year) and in the 5 subsequent tax years — 6 tax years in total.
The eligible cost is the acquisition value of the electricity storage investment, calculated at market prices. Together with all other state aid claimed, the incentive may not exceed 30% of the eligible cost (a higher intensity is possible with the SME bonus), and may be at most the forint equivalent of EUR 30 million.
Maximum intensity (GBER)
Small enterprise
Base 30% + SME bonus 20%
50%
Medium-sized enterprise
Base 30% + SME bonus 10%
40%
Large enterprise
Base 30%, no SME bonus
30%
Important: This applies to all state aid combined. If you also receive a Jedlik grant, the TAO incentive can be claimed up to the remaining headroom.
Conditions
Conditions for claiming the tax incentive
Electricity storage
The incentive is available only for newly installed investments that create electricity storage (batteries, BESS).
75% renewable share
At least 75% of the stored energy must come from a renewable source (e.g. solar PV). The storage and the renewable plant must be connected at the same POD.
Prior notification
Before the investment starts, an electronic notification must be submitted to the Ministry of Finance, using the form published on the Ministry’s website.
6-year period
The tax incentive can be claimed over 6 tax years from the tax year of commissioning (or from the following tax year) — at the taxpayer’s choice.
Grid connection
A valid grid connection and network usage agreement is required. The storage and the renewable source must be connected at the same POD.
Exclusions
It cannot be combined with the development tax incentive (§22/B) or the energy efficiency tax incentive (§22/E) for the same investment.
Cumulation
Jedlik grant + TAO tax incentive
The two forms of support can be combined, but under the EU GBER rules the combined intensity may not exceed the maximum for your company size.
Example: small enterprise, HUF 200 million BESS investment
Example: small enterprise, HUF 200 M, but only 35% from Jedlik
Here the TAO incentive reduces the effective own contribution by HUF 30 M — spread over 6 tax years, that is ~HUF 5 M of tax savings a year.
Example: large enterprise, HUF 500 M, 30% from Jedlik
The examples above are for illustration only. The exact intensity and cumulation rules depend on the specific investment, the company size and the Jedlik grant decision. Involving a tax advisor is recommended.
Why does this matter?
Many businesses leave money on the table
Most industrial businesses do not know the TAO incentive exists. ICP does not just install the system — we help you make use of the full range of available support.
Little known
TAO §22/H came into force in 2024. In the Hungarian market almost only tax advisors write about it — no battery storage contractor actively communicates it. If you don’t look for it, you won’t find it.
The 75% share is critical
Both the Jedlik grant and the TAO incentive require 75% of the stored energy to come from a renewable source. If this is not met, both forms of support must be repaid. ICP’s simulation engine secures this in advance.
Option without capital investment
If neither the own contribution for a grant nor the TAO incentive is enough, under the Energy Infrastructure as a Service model we fund the investment. In that case the TAO incentive is claimed on ICP’s side — resulting in a lower service fee.
Frequently asked questions
Questions about the TAO tax incentive
Can the TAO §22/H incentive also be claimed for a solar PV system?
No. §22/H applies only to investments that create electricity storage (batteries). A solar PV system on its own does not qualify for this tax incentive. However, solar PV is a necessary condition, because the 75% renewable charging share must be met.
What if our tax liability is not large enough to use the incentive?
The tax incentive is spread over 6 tax years. If in a given year the corporate tax payable is not enough to use the full incentive, the remainder can be carried forward to subsequent years — within the 6-year period.
When must the notification be made?
BEFORE the investment starts, using the electronic form published on the Ministry of Finance website. If notified afterwards, the incentive cannot be claimed. ICP flags this during project planning.
Can the TAO incentive be combined with the Energy Infrastructure as a Service model?
Yes, and this is one of ICP’s unique advantages. If ICP funds the investment (under the service model), the TAO incentive is claimed on ICP’s side, which results in a lower service fee for the client.
Do you need a tax advisor to claim the TAO incentive?
It is recommended. ICP provides the technical design, guarantees the 75% share and delivers the installation, but for tax-law questions (notification, cumulation rules, tax return) we recommend involving a tax advisor. We can help with this through our partners, too.
Make the most of the TAO incentive
Request a free consultation — we will prepare a comprehensive technical and financial calculation that includes the combined Jedlik + TAO support options.
ICP does not provide tax advisory services. For tax-law questions on the TAO incentive, we recommend involving a tax advisor.