This means that you can deduct more than the actual costs you have incurred. This scheme was introduced to encourage companies to invest in certain sustainable and environmentally friendly assets, such as energy-saving measures and eco-friendly business resources. By making these costs 120% deductible, it becomes more attractive for companies to make such investments.

The idea behind this scheme is that promoting sustainable investments benefits both the economy and the environment. By allowing additional deductibility of costs, the financial burden for companies is alleviated, encouraging them to invest in sustainable and environmentally friendly projects.

It is important to note that the specific conditions and application areas of this scheme may vary depending on the tax system in your country. It is advisable to contact a tax advisor or the tax authorities to discuss the details and possibilities of the 120% deductibility in relation to your specific business investments.