Example: Deduction for improvement works to reduce heating and cooling demand

The couple formed by Mr. JP and Mrs. RL, married under a community property regime, replaced all the windows (frame and glazing) in their habitual residence on June 27, 2023 with double windows to achieve greater efficiency in the thermal insulation of the home for a total amount of 8,900 euros, which was paid on June 30, 2023 by bank transfer.

To replace the windows, he requested and received a grant from his Autonomous Community of residence amounting to 1,500 euros.

In addition, in another rented property he owns, he changed the gas boiler to a biomass one during the month of December, which represents an energy saving of 13%. The total cost of the new boiler is 3,500 euros, which was paid on 15 December 2023.

To prove compliance with the requirements for this deduction, an energy efficiency certificate was requested for both homes before and after the works.

In his habitual residence, a certificate was issued on May 15, 2023, which was registered in the corresponding registry (before the works) and another on July 22, 2023 (registered on November 25, 2023), resulting in a 20% reduction in the sum of the heating and cooling demand indicators of the energy efficiency certificate issued by the competent technician. The certificates cost 100 euros.

In the case of the rented property, an energy efficiency certificate was available that was less than two years old and after the boiler was changed in December 2023, a new certificate was issued on December 30, 2023 for an amount of 80 euros, which certifies the aforementioned 13% saving.

Determine the amount of the deduction for 2023 in individual and joint taxation.

Solution:

Please note that initially this deduction was extended until December 31, 2022, but first, Article 21 of Royal Decree-Law 18/2022, of October 18, approving measures to strengthen the protection of energy consumers and contribute to the reduction of natural gas consumption in application of the "Plan + security for your energy (+SE)" as well as measures regarding the remuneration of personnel in the service of the public sector and the protection of occasional agricultural workers affected by the drought ( BOE of October 19) and then, Article 16 of Royal Decree-Law 8/2023, of December 27, which adopts measures to address the economic and social consequences derived from the conflicts in Ukraine and the Middle East, as well as to alleviate the effects of the drought ( BOE of December 28) modified the temporal scope of the deductions for works to improve the energy efficiency of homes regulated by the Fiftieth Additional Provision of the Personal Income Tax Law , extending it until December 31, 2024 .

Contributor Mr. JP .

• Deduction base: 3.750

  8,900 euros (works) + 100 euros (certificates) – 1,500 euros (aid obtained) ÷ 2 = 3,750 euros

  Please note that the subsidies derived from the Renove Plan for window replacement in the different Autonomous Communities are generally obtained by the beneficiaries in the form of a discount that is applied to the invoice for the acquisition and installation of the goods by the collaborating entities of the program, which process the subsidy on behalf of the beneficiary, applying it to the invoice as an advance payment to the beneficiary.

• Maximum deduction base: 5,000 euros

• Deduction amount: (3,750 x 20%) = 750

Taxpayer Mrs. RL .

• Deduction base:

  8,900 euros (works) + 100 euros (certificates) – 1,500 euros (aid obtained) ÷ 2 = 3,750 euros

• Maximum deduction base: 5,000 euros

• Deduction amount: (3,750 x 20%) = 750

Joint statement by Mr. JP . and Mrs. RL

• Deduction base:

  8,900 euros (works) + 100 euros (certificates) – 1,500 euros (aid obtained) = 7,500 euros

• Maximum deduction base: 5,000 euros

• Deduction amount: (5,000 x 20%) = 1,000