For investments in installations for self-consumption of electrical energy or intended for the use of certain renewable energy sources in homes in the Valencian Community, as well as for the participation fee in investments in collective facilities where the homes are located.

Regulations: Art. 4.One.o) Law 13/1997, of December 23, regulating the autonomous section of the personal income tax and other transferred taxes, of the Valencian Community .

Amount of deduction

20% of the amount of the amounts invested in installations made in homes in the Valencian Community and in collective installations in the building intended for any of the purposes indicated below, provided that these are not related to the exercise of an economic activity:
- Self-consumption electricity installations, as established in article 9.1.a of Law 24/2013, of December 16, of the Electricity Sector, and its implementing regulations (self-consumption electricity supply modality).
- Facilities for producing thermal energy from solar energy, biomass or geothermal energy for generating hot water, heating and/or air conditioning.
- Facilities for the production of electrical energy from photovoltaic solar energy and/or wind energy, for the electrification of homes isolated from the electrical distribution network and whose connection to it is not feasible from a technical, environmental and/or economic point of view.
Note: The notes that characterize the exercise of an economic activity and the returns derived from it are discussed in Chapter 6.
Installations that are mandatory under Royal Decree 314/2006, of March 17, approving the Technical Building Code (CTE), will not give the right to practice this deduction.

Remember: In 2017 and 2018, this deduction was exclusively applicable to investments made in the taxpayer's habitual residence.

Requirements for applying the deduction

This deduction may be applied to investments made in the domestic in any type of dwelling, both those that are habitual and those that constitute second homes, provided they are located within the territory of the Valencian Community.

The deduction is not applicable when it concerns housing whose use is transferred to third parties (rented housing, housing transferred to third parties without compensation, housing of which only the bare ownership is held, etc.), since it is not included in its usual sense in the term "second residence".

Note: For the purposes of this deduction, the concept of housing contained in the regional regulations governing housing will apply.
In the case of housing complexes under a horizontal property regime in which these installations are carried out in a shared manner , provided that they have legal coverage, this deduction may be applied by each of the owners individually according to the participation coefficient that corresponds to them, provided that they comply with the rest of the established requirements
The deduction will require prior recognition by the regional administration. For this purpose, the Valencian Institute of Business Competitiveness (IVACE) will issue the corresponding accreditation certificate.

The IVACE will determine the typology, technical requirements, maximum reference costs and other characteristics of the equipment and facilities to which the deduction established in this section is applicable. The IVACE may carry out the technical control and verification actions on the installed equipment that it considers appropriate.
The actions subject to deduction must be carried out by installation companies that meet the requirements established by regulations.

Deduction base

The basis of this deduction consists of the amounts actually paid in the year by the taxpayer.

In the case of housing owned by the community property, the expenses of the family home are attributable to both spouses, regardless of who actually pays them or which of them appears as the holder of the invoice. For its part, in the regime of separation of assets, the allocation of expenses to one or the other spouse or to both must be made based on who actually made the expense.

In the case of payments from financing obtained from a bank or financial institution, the amortization of capital for each fiscal year will be considered to form part of the deduction base, with the exception of interest.

Financing costs, other than interest, only form part of the base when they have been included in the capital to be financed.

Note: To apply the deduction, the expense and payment receipts must be kept, which must comply with the provisions of the applicable regulations.
The application of the deduction is conditional on the delivery of the monetary amounts derived from the act or legal transaction that gives the right to its application being made by credit or debit card, bank transfer, personal check or deposit into accounts in credit institutions.

The requirement for this is established in the sixteenth Additional Provision of Law 13/1997, of December 23, which regulates the autonomous section of the Personal Income Tax and other transferred taxes.

Maximum annual base

The maximum annual base for this deduction is set at 8,000 euros . The indicated base will also be considered as maximum deductible investment limit for each home and fiscal year . Any portion of the investment supported by public subsidies will not qualify for deductions.

The limit of 8,000 euros per dwelling and fiscal year applies to all taxpayers with respect to the same dwelling.

In the case of several taxpayers and with respect to the same dwelling, the limit of 8,000 euros is distributed according to the percentage of ownership of the real right held over the dwelling by the taxpayers, whether or not they are taxpayers for the tax.
The amounts corresponding to the tax period not deducted may be applied in the settlements of the tax periods that conclude in the 4 immediate and successive years .

Application rules:

Amounts paid in a year that remain to be deducted must be deducted in the maximum amount permitted in each of the following years and may not be deducted outside the four-year period.
If in a year there are amounts paid in the year and others from previous years pending deduction, these will be applied first to determine the amounts paid in the year that can be deducted in the following years.
The deduction corresponding to amounts paid in a year in which the taxpayer has not filed a return, as well as the deduction not applied for reasons other than the application of the maximum deduction base, cannot be applied in subsequent years.
The deduction corresponding to amounts invested in a year in which the taxpayer has not filed a return, as well as the deduction "not enjoyed" for reasons other than the application of the maximum deduction base (for example, because the deduction has no effect on the final result of the return), only has an effect in said year, without it being possible to transfer it to subsequent years.
In exceptional cases where the deduction is applied to more than one home, if the total investment made in the year exceeds the maximum deduction base, the deduction corresponding to each home is made, firstly, taking into account the specific circumstances of each home and, secondly, in proportion to the deductible investment, both in the year of the investment and in the case of application to the four immediate and successive tax periods.

Other conditions for the application of the deduction

The application of this deduction will require 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, increases or decreases in value experienced during the aforementioned tax period by 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 assets situation