Construction Industry Sees Hope with Increased ROT Deduction

The temporary increase of the ROT deduction from next week on gets the construction industry to sense morning air after several tough years. We hear from member companies that the phones have started ringing, says Tanja Rasmusson who is business policy chief for The Construction Companies.

» Published: May 11 2025

Construction Industry Sees Hope with Increased ROT Deduction
Photo: Lisa Arfwidson/SvD/TT

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As of May 12, the government's initiative for a temporary increase in the rot deduction comes into effect. It means that those who have hired a company for some form of rot work can deduct 50 percent of the labor costs, instead of as previously 30 percent.

The change applies from May 12 and for the rest of the year, and despite being time-limited, the construction industry is counting on a boost.

It can help maintain employment in a very tough time for many construction companies and craftsmen, especially the smaller ones, says Tanja Rasmusson at the industry organization Byggföretagen.

Jobs count

She says that the increased rot deduction is a step in the right direction for the construction industry, which in 2024 saw 2,000 construction companies go bankrupt.

Every job counts, so if construction companies can keep staff thanks to this deduction, we are very happy about it.

The hope is that the stimulus measure will be able to be the deciding factor that gets individuals to go ahead with, for example, a planned kitchen renovation or a patio construction.

We hear from member companies that the phones have started ringing. But how many will take action is hard to predict.

A boost

The industry organization Byggmaterialhandlarna is also optimistic and believes that the increased rot deduction will give a boost to the industry.

It's not all doom and gloom anymore. I think it will be positive and also contribute to keeping skills in the construction sector, rather than everyone leaving when there's no construction, says Monica Björk, CEO of Byggmaterialhandlarna.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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