The Cyprus Council of Ministers has approved a draft bill that provides certain tax incentives for energy-saving investments. This includes: An increase in the capital deduction from 3% to 7% for investment to increase the energy efficiency of buildings; An increase in the capital allowance from 10% to 20% for machinery and equipment connected to renewable energy systems and technical energy efficiency improvement systems; and An increase in the capital allowance from 20% to 25% for new commercial electric motor vehicles, taxis, and buses. The incentives would generally apply for capital expenditure incurred during tax years 2023, 2024, and 2025.