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) and Sixteenth Additional Provision Law 13/ 1997, of December 23, which regulates the regional section of the Personal Income Tax and other transferred taxes, of the Valencian Community

Deduction amount

Note: In 2017 and 2018, this deduction was exclusively applicable to investments made in the taxpayer's habitual residence. As of 2019, it was extended to all types of homes. And since January 1, 2021, different percentages have been established depending on whether it is a habitual residence or another type of home.

40 percent of the amount of the amounts invested in installations carried out in the habitual residence of the Community Valenciana and in collective facilities of the building intended for any of the purposes indicated below:
1. Electrical self-consumption installations, as established in article 9.1 of Law 24/2013, of December 26, on the Electrical Sector, and the regulations that develop it, that have been registered in the Administrative Registry of self-consumption of the Valencian Community.
  In accordance with the provisions of article 9.1 of Law 24/2013, the following modalities of self-consumption are distinguished:
  - Supply modality with self-consumption without surpluses: when the installed physical devices prevent the injection of any excess energy into the transportation or distribution network.
  - Supply modality with self-consumption with surpluses: when the generation facilities can, in addition to supplying energy for self-consumption, inject surplus energy into the transportation and distribution networks.
2. Installations for the production of thermal energy from solar energy, biomass or geothermal energy for the generation of domestic hot water, heating and/or air conditioning.
3. Installations for the production of electrical energy from solar photovoltaic or wind energy, for the electrification of homes isolated from the electrical distribution network and whose connection to it is unfeasible from a technical, environmental or economic point of view.
20 percent of the amount of the amounts invested in facilities, intended for any of the purposes indicated above, carried out in the homes that constitute second homes for the taxpayer, as long as these are not related to the exercise of an economic activity.

Note:To determine whether or not the home is affected by the exercise of economic activities, the state regulations governing personal income tax will be followed .

Note: The notes that characterize the exercise of an economic activity and the returns derived from it are discussed in chapter 6.
Those installations that are mandatory by virtue of the application of Royal Decree 314/2006, of March 17, which approves the Technical Code of Building (CTE).

Requirements for applying the deduction

The homes must be located in the territory of the Valencian Community.

Note: For the purposes of this deduction, the concept of housing contained in the regional regulations governing housing will be used.
In the case of housing complexes under the horizontal property regime in which these installations are carried out on a shared basis, as long as they have legal coverage, this deduction may be applied by each of the owners individually according to the participation coefficient that corresponds to them, as long as they comply with the rest of the established requirements.
The actions subject to deduction must be carried out by installation companies that meet the requirements established by regulation.
Deduction requires prior recognition by the regional administration.

For these purposes, the Valencian Institute of Business Competitiveness (IVACE) will issue the corresponding accreditation certification.

The IVACE determines 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, and may carry out the actions of control and technical verification on the installed equipment that it deems appropriate.

The certificate will be issued by the IVACE, in accordance with the Resolution of February 8, 2022 , of the president of the Valencian Institute of Business Competitiveness (IVACE), which establishes the requirements and procedure to obtain it, and proves that both the applicant and the facility meet all the requirements for the application of the deduction.

The procedure requires that the certificate be requested by each of the taxpayers who wish to apply the aforementioned deduction, being obliged to justify the amount invested through an invoice issued in the name of the applicant.

However, in the case of marriages under a community regime, the accreditation of the deduction will be admissible by means of a certificate from the IVACE issued in the name of only one of the spouses, as long as the investment has been made during the validity of the partnership. marital property, and both may deduct in their personal income tax return 50% corresponding to the amounts paid for the investment in said facilities.

For its part, in the case of marriages under a regime of separation of property, or in any other case of acquisition of the common facility, the right to apply the deduction will correspond to the person who has actually made the investment, and must request the certificate IVACE accreditation for each of the taxpayers who wish to apply the deduction.
To apply the deduction proof of expense and payment must be kept , which must comply with the provisions of its applicable regulations.

Deduction base

The base of this deduction is constituted by the amounts actually paid in the year by the taxpayer.

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

Financing expenses, 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, proof of expense and payment must be kept, which must comply with the provisions of their applicable regulations.
The application of the deduction is conditional on the delivery of the monetary amounts derived from the legal act or business that gives the right to its application to be made by credit or debit card, bank transfer, nominative check or deposit into accounts in credit institutions.

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

Annual maximum base

The maximum annual base of this deduction is established at 8,800 euros . The indicated base will also be considered maximum deductible investment limit for each home and financial year . The part of the investment supported, where appropriate, with public subsidies will not give the right to deduction.

The limit of 8,800 euros per home and year applies to the group of taxpayers with respect to the same home.

In the case of several taxpayers and with respect to the same home, the limit of 8,800 euros is distributed according to the percentage of ownership of the real right held over the taxpayer's home, whether or not non-filers for Personal Income Tax .

Note: For taxpayers who died before October 28, 2022, the maximum base of the deduction will be 8,000 euros.
The amounts corresponding to the tax period not deducted may be applied in the settlements of the tax periods that end in the four immediate and successive years .

Application rules

The amounts paid in a year that remain pending deduction must be deducted in the maximum amount allowed by each of the following years and without being able to be deducted outside the period of four years.
When amounts invested in years prior to 2022 and not deducted are pending deduction, the percentage applicable in 2022 to them will be that corresponding to the year in which the investments were made.

Therefore, if amounts are invested on a habitual residence in 2022 and there are amounts pending deduction from years prior to 2021, the applicable percentage will be 20 percent with respect to the amounts pending deduction and 40 percent on the amounts invested in 2021 and 2022.
If in a financial year amounts paid in the year and others from previous years pending deduction coexist, these will be applied first for the purposes of determining the amounts paid in the year that can be deducted in subsequent years.
The deduction corresponding to the amounts paid in a year in which the taxpayer has not filed a return cannot be applied in subsequent years, as well as the deduction not applied for reasons other than the application of the maximum base of the deduction.
The deduction corresponding to the amounts invested in a year in which the taxpayer has not filed a declaration, as well as the deduction “not taken” for reasons other than the application of the maximum base of the deduction (for example, because the deduction in the final result of the declaration), only has effect in said year, without being possible to transfer it to subsequent years.
In exceptional cases in which the deduction is applied to more than one home, if the total investment made in the year exceeds the maximum base of the deduction, the deduction corresponding to each of the homes is made, first, taking into account the specific circumstances of each home and, secondly, the proportion with respect to the deductible investment, both in the exercise 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 that its verification showed at the beginning of the same in, 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 .