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Practical Income Manual 2023.

d) Freedom of amortization in investments that use energy from renewable sources

Regulations: Seventeenth Additional Provision LIS

 Note: This tax incentive will only apply to those investments whose start-up occurred in the years 2023 and 2024.

Scope

Investments in facilities intended for:

  • Self-consumption of electrical energy that uses energy from renewable sources in accordance with what is defined in Royal Decree 244/2019, of April 5.

  • Thermal use for own consumption that uses energy from renewable sources, which replaces installations that use energy from non-renewable fossil sources.

Precisions:

  • renewable energy will be considered to be that from non-fossil renewable sources, that is, wind energy, solar energy (solar thermal and solar photovoltaic) and geothermal energy, ambient energy, tidal energy, wave energy and other types of ocean energy, hydropower and energy from biomass, landfill gases, wastewater treatment plant gases, and biogas, as defined in Directive ( EU ) 2018/ 2001 of the European Parliament and of the Council of December 11, 2018, relating to the promotion of the use of energy from renewable sources.

  • In the case of electrical energy production facilities : Only renewable energy will be considered that which comes from facilities in category b) of article 2.1 of Royal Decree 413/2014, of June 6, which regulates the activity of producing electrical energy from renewable energy sources, cogeneration and waste.

  • In the case of installations that use electrically driven heat pumps: Only its use for heat will be considered renewable energy from a seasonal factor performance (SCOPnet) of 2.5 in accordance with Commission Decision 2013/114/ EU of 1 March 2013, establishing the guidelines for the calculation by Member States of renewable energy from heat pumps of different technologies, in accordance with the provisions of Article 5 of Directive 2009/28/ EC of the European Parliament and the Council.

  • In the case of installations that use cold pumps : They will only be considered to produce renewable energy when the cooling system operates above the minimum efficiency requirement expressed as a primary seasonal performance factor and this is at least 1.4 (SPFplow), in accordance with the provisions of the Delegated Regulation ( EU ) 2022/759 of the Commission of December 14, 2021.

  • In the case of renewable thermal energy generation systems (heat and cold) for air conditioning or domestic hot water generation, it will only be understood that the consumption of non-renewable primary energy has been improved when the non-renewable primary energy consumption indicator is reduced by at least 30 percent, or an improvement in the energy rating of the facilities is achieved to obtain an energy class “A” or “B”, on the same rating scale. .

Exceptions

The following will not be able to benefit from this freedom of amortization regime:

  • Buildings.

  • Those installations that are mandatory under the regulations of the Technical Building Code, approved by Royal Decree 314/2006, of March 17, unless the installation has a nominal power greater than the minimum required, in which case it may The part of the cost of the installation proportional to the installed power above that required minimum will be subject to freedom of amortization.

 Requirements

In order to apply this incentive in fiscal year 2023, compliance with the following requirements is required:

  • That the facilities must have been made available to the taxpayer as of October 20, 2022.

  • That the entry into operation of the new facilities should occur in 2023.

  • That during the 24 months following the date of the beginning of the tax period in which the acquired elements come into operation, the total average workforce of the company is maintained with respect to the average workforce of the previous 12 months.

    To calculate the total average workforce of the entity, the people employed will be taken, in the terms provided by labor legislation, taking into account the contracted day in relation to the full day.

  • That the taxpayer is in possession of documentation proving that the investment uses energy from renewable sources, which is indicated below.

Once the above requirements have been met, the maximum amount of the investment that can benefit from the freedom of amortization regime will be 500,000 euros.

Accrediting documentation

For the application of the freedom of amortization regulated in this provision, taxpayers must be in possession, as appropriate, of the following documentation that proves that the investment uses energy from renewable sources, distinguishing the following assumptions depending on the type of renewable energy concerned:

  1. Electrical power installations:

    • In the case of generation: the Exploitation Authorization.

    • In facilities with self-consumption surpluses: accreditation of registration in the Administrative Registry of Electrical Energy Production Facilities (RAIPREE) or,

    • In installations of less than 100 kW : the Electrical Installations Certificate (CIE) in accordance with the Low Voltage Electrotechnical Regulations, in accordance with the provisions of Royal Decree 244/2019, of April 5.

  2. Renewable gas production systems (biogas, biomethane, renewable hydrogen): accreditation of registration in the Registry of gas production facilities from renewable sources regulated in article 19 of Royal Decree 376/2022, of May 17.

  3. Industrial or process renewable thermal (heat and cold) energy generation systems: accreditation of registration in the registry or report of the competent body in the Autonomous Community.

  4. Renewable thermal energy generation systems (heat and cold) for air conditioning or domestic hot water generation: energy efficiency certificate issued by the competent technician after the investments have been made, indicating the incorporation of these systems with respect to the certificate issued before the start of the investments.

Incompatibility

The taxpayer may opt for the application of this incentive or for the freedom of amortization regime provided for small companies for investments with job creation when the latter is applicable.

Consequences of failure to comply with the obligation to maintain the workforce

In the event that after the application of the tax benefit the obligation to maintain the workforce is breached, the full amount that would have corresponded to the excess deducted amount, plus the corresponding late payment interest, must be paid. The payment of the full amount and late payment interest will be made together with the self-assessment corresponding to the tax period in which the obligation was breached.