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What happens to unused EDI tax credits?

Unused Economic Development Incentive (EDI) credits are not lost. They can be carried forward for up to five years after the initial incentive period ends.

  • Scenario: A solar energy firm has an unused EDI credit of ₦20 million at the end of its 5-year incentive period. It can apply this credit to reduce its tax liabilities in any year between 2027 and 2031.