The Minister of Finance gave clarifications on the benefits for thermal modernization in personal income tax. According to the minister, an air conditioner with a heating function cannot be deducted, but the director of the National Tax Information, who decided in 2022 that such a device can be deducted by the taxpayer, has a different opinion.
The thermal retrofit benefit is an opportunity to reduce income tax by deducting the costs of a thermal retrofit project from its tax base. It aims to encourage Poles to use solutions and technologies that raise the energy standard of a building, thereby reducing its energy demand. First of all, the insulation of buildings and the replacement of heating devices with energy-saving and low-emission ones are encouraged.
Relief of thermomodernization. Minister explains who can benefit from it
On March 31, clarifications were published by the Minister of Finance regarding who and under what circumstances can use the thermomodernization benefit.
In order to use the exemption, it is necessary to check whether the planned equipment and materials, as well as the planned work, are indicated in the annex to the Decree of the Minister for Investment and Development of December 21, 2018 on determining the list of types of building materials, devices and services related to the implementation of thermal modernization projects (updates from 2021) - reminds the Murator Plus website.
Among the devices, the purchase and installation of which makes you eligible for the benefit, there are:
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heating appliances,
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solar and photovoltaic installations,
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mechanical ventilation
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as well as insulating materials and window and door joinery.
– It should be remembered that not every expense can be deducted under this benefit. Only the costs of thermal upgrades of single-family homes are deductible, and you must have title to the building. To make the deduction, an invoice issued by an active VAT payer is required. Investments in thermal modernization should be completed within 3 years, explained Adam Allen, tax consultant, partner of Thedy & Partners, in a comment to the minister’s explanations.
Relief of thermomodernization. Can air conditioning be subtracted?
In addition, the benefit is limited and the limit for spouses is separate - each has its own. It is also worth adding that when financing an investment with a loan, a benefit can also be included. However, if the benefiting taxpayer receives a refund of the deducted expenses, the tax preference will need to be adjusted.
Among the devices, the purchase and installation of which gives you a benefit, there is no air conditioner with a heating function. The explanations contradict the explanation of the director of the State Tax Information Service dated March 4, 2022 (No. 0113-KDIPT2-2.4011.1091.2021.3.AKU), in which he stated that the right to deduct the thermo-modernization benefit will be available to those taxpayers who have purchased an air conditioner with a heating option as part of the implementation of a thermal retrofit project and demonstrate the relationship of the costs incurred with the aforementioned thermal retrofit project.
Activities consistent with the purpose of thermal modernization may include:
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an improvement resulting in a reduction in the demand for energy supplied for heating residential buildings,
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full or partial replacement of energy sources with renewable sources or the use of highly efficient cogeneration.
Source: Wprost
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