For investments in self-consumption facilities for electrical energy or intended for the use of certain renewable energy sources in homes in the Valencian Community, as well as for the participation quota 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, regulating the autonomous section of the Personal Income Tax and other transferred taxes, of the Valencian Community

Amount of deduction

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

40% of the amount of the amounts invested in installations carried out in the habitual residence of the Valencian Community and in collective installations 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, of the Electric Sector, and the regulations that develop it, which 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 types of self-consumption are distinguished:
  - Supply mode with self-consumption without surplus: when the physical devices installed prevent any excess energy from being injected into the transmission or distribution network.
  - Supply mode with self-consumption with surpluses: when generating facilities can, in addition to supplying energy for self-consumption, inject surplus energy into the transmission and distribution networks.
2. Facilities for producing thermal energy from solar energy, biomass or geothermal energy for generating hot water, heating and/or air conditioning.
3. Facilities for producing electrical energy from photovoltaic solar energy or wind energy, for electrifying homes isolated from the electrical distribution network and whose connection to it is not feasible from a technical, environmental or economic point of view.
20 percent of the amount of the sums invested in installations, intended for any of the purposes indicated above, carried out in the homes that constitute second homes for the taxpayer, provided that 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.
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.

Requirements for applying the deduction

The must 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 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 actions subject to deduction must be carried out by installation companies that meet the requirements established by regulations.
The deduction requires prior recognition by the regional administration.

For this purpose, the Valencian Institute of Business Competitiveness (IVACE) will issue the corresponding accreditation certificate.

The IVACE determines the typology, technical requirements, maximum reference costs and other characteristics of the equipment and installations to which the deduction established in this section is applicable, and may carry out the control and technical verification actions on the installed equipment that it considers appropriate.

The certificate will be issued by 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 for obtaining it, and certifies that both the applicant and the facility meet all the requirements for applying the deduction.

The procedure requires that the certificate be requested by each taxpayer who wishes to apply the aforementioned deduction, and they are required to justify the amount invested through an invoice issued in the name of the applicant.

However, in the case of married couples with a community property regime, the deduction may be accredited by means of a certificate from IVACE issued in the name of only one of the spouses, provided that the investment was made during the validity of the community property regime, and both spouses may deduct 50% of the amounts paid for the investment in said facilities in their personal income tax return.

In the case of marriages under a separation of property regime, or in any other case of acquisition of the facility in common, the right to apply the deduction will correspond to whoever has actually made the investment, and each of the taxpayers who wish to apply the deduction must request the certificate accrediting it from IVACE.
To apply the deduction you will have to keep the expense and payment receipts, which will have to comply the provisions of their applicable regulations.

Deduction base

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

In the case of payments arising 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 will have to 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 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 Additional Provision sixteen of Law 13/1997, of December 23, which regulates the autonomous section of the IRPF and other transferred taxes.

Maximum annual base

The maximum annual base for this deduction is set at 8,800 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 8,800 euros per dwelling and fiscal year applies to the group of taxpayers with respect to the same dwelling.

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 that the taxpayers have over the home, whether or not they are declarants for the IRPF .

Note: For taxpayers who died before October 28, 2022, the maximum deduction base 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 conclude in the four immediate and successive years .

Rules of application

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.
When amounts invested in years prior to 2022 and not deducted remain pending deduction, the percentage applicable in 2022 to them will be the one corresponding to the year in which the investments were made.

Therefore, if amounts are invested in a habitual residence in 2022 and there are amounts pending deduction from years prior to 2021, the applicable percentage will be 20% with respect to the amounts pending deduction and 40% on the amounts invested in 2021 and 2022.
If in a financial year there are amounts paid in the year and other amounts 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 financial 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 of the homes 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 .