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Practical Income Manual 2020.

For amounts destined for the acquisition or rehabilitation of habitual residence, coming from public aid

Regulations: Art. 4.Uno.m) Law 13/1997, of December 23, which regulates the regional section of the personal income tax and other transferred taxes, of the Valencian Community.

Amount and requirements for applying the deduction

The amount that comes from among the following:

  • 102 euros per taxpayer provided that he has actually allocated, during the tax period, to the acquisition or rehabilitation of the home that constitutes or will constitute their habitual residence, amounts coming from a subsidy for this purpose granted by the Generalitat, charged to its own budget or that of the State.

    The amounts will be understood to be effectively destined for the acquisition or rehabilitation of the habitual residence in accordance with the rules for temporary allocation of income established in the state regulations regulating the Personal Income Tax .

    Note: The criteria for the temporary allocation of certain aid related to the rehabilitation of the habitual residence are discussed in Chapter 11. 

    When the aid is allocated in several tax periods, the amount of the deduction will be prorated between the years in which such allocation occurs.

    For their part, the concepts of habitual residence and rehabilitation of the same are those established in the aforementioned regulations.

  • The amount resulting from applying the average rate of general regional tax on the amount of public aid , provided that the taxpayer has actually allocated, during the tax period, to the acquisition or rehabilitation of the home that constitutes or will constitute your habitual residence, the amounts from the public aid for this purpose granted by the Generalitat, charged to its own budget or that of the State.

    In the case of public aid for rehabilitation, it must be granted in the field of building rehabilitation and regeneration and urban renewal in those neighborhoods or groups of buildings and homes that require the demolition and replacement of their buildings, the redevelopment of their free spaces or the review of its equipment and provisions, including, where appropriate, the temporary relocation of residents.

    Note: The taxpayer must choose to apply one or the other amount (102 euros or the amount resulting from applying the average rate of general regional tax on the amount of public aid) when the requirements for both are met.

  • The application of the deduction is conditioned to the delivery of the monetary amounts derived from the legal act or business that entitles its application to be made by credit or debit card , bank transfer, nominative check or deposit into accounts at credit institutions .

    This requirement is required by the sixteenth Additional Provision of Law 13/1997, of December 23, which regulates the regional section of the Personal Income Tax and other transferred taxes.

  • It is also required that the verified amount of the taxpayer's assets at the end of the tax period exceeds the value shown by its verification at the beginning of the same by at least the amount of the investments made .

    For these purposes, the increases or decreases in value experienced during the aforementioned tax period by the assets that at the end of the period continue to form part of the taxpayer's assets will not be computed.

    See chapter 16 for verification of the financial situation

Incompatibility

This deduction is incompatible, for the same amounts, with the deduction "For the first acquisition of their habitual residence by taxpayers aged 35 or younger" and with the deduction "For the acquisition of their habitual residence by a person with a disability."