# Example: Deduction for improvement works that reduce the consumption of non-renewable primary energy

The couple formed by Mr. TP and Mrs. PZ, married in a legal community regime, carried out works in March 2022 in their habitual residence (located in a building for residential use) which consisted of the installation of insulating panels (trasdosados) in the walls and thermal insulation in false ceilings. Likewise, a new aerothermal heating and air conditioning system was installed in the home.

The total amount (including the issuance of energy efficiency certificates) amounted to 28,000 euros. The amount was paid in two payments. One at the beginning of the work for an amount of 20,000 euros and another at the end for the rest (8,000 euros). Payments were made by registered checks.

In addition, a subsidy was requested and obtained from the program to promote the improvement of energy efficiency and sustainability in homes in the amount of 8,000 euros.

To prove compliance with the requirements for the practice of this deduction, the issuance of an energy efficiency certificate was requested before and after the works. The latter was issued on December 20, 2022 and resulted in the qualification of the home as energy class "B", on the energy consumption scale.

Determine the amount of the deduction for 2022, both in individual and joint taxation.

## Solution:

Don TP taxpayer:

• Deduction base: 20,000 euros ÷ 2 = 10,000. (2 spouses)

Note: The amount of the public subsidy obtained (8,000 euros) is deducted from the total amount paid (28,000 euros). Therefore, 28,000 - 8,000 = 20,000

• Maximum basis of deduction: 7,500 euros

• Deduction amount: (7,500 x 40%) = 3,000

Taxpayer Mrs. PZ:

• Deduction base: 20,000 euros ÷ 2 = 10,000. (2 spouses)

Note: The amount of the public subsidy obtained (8,000 euros) is deducted from the total amount paid (28,000 euros). Therefore, 28,000 - 8,000 = 20,000

• Maximum basis of deduction: 7,500 euros

• Deduction amount: (7,500 x 40%) = 3,000

Don TP Joint Statement and Mrs. PZ

• Deduction base: 20,000 euros = 20,000

• Maximum basis of deduction: 7,500 euros

• Deduction amount: (7,500 x 40%) = 3,000