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

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

For the change of windows, he requested and obtained aid from his Autonomous Community of residence that amounted to 1,500 euros.

Furthermore, in another rented home he owned, during the month of December he changed the gas boiler for a biomass one, which represents 13 percent energy savings. The total cost of the new boiler amounts to 3,500 euros, which was paid on December 15, 2023.

To prove compliance with the requirements for this deduction, both homes were requested to issue an energy efficiency certificate 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 reduction of one 20 percent in the sum of the heating and cooling demand indicators of the energy efficiency certificate issued by the competent technician. The amount of the certificates amounted to 100 euros.

In the case of the rented home, there was an energy efficiency certificate less than two years old and after the boiler change in December 2023, a new certificate was issued on December 30, 2023 for the amount of 80 euros that certifies the aforementioned savings of 13 percent.

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 that, first, article 21 of Royal Decree-Law 18/2022, of October 18, which approves measures to reinforce the protection of energy consumers and contribution to the reduction of natural gas consumption in application of the "Plan + security for your energy (+SE)" as well as measures regarding remuneration of personnel serving the public sector and protection of temporary agricultural workers affected by the drought ( BOE of October 19) and then, article 16 of Royal Decree-Law 8/2023, of December 27, by which adopt 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 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 .

Taxpayer Mr. JP .

Deduction base: 3,750

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

Keep in mind that the subsidies derived from the Renove Plan for replacing windows of the different Autonomous Communities are generally obtained by the beneficiaries in the form of a discount that, on the invoice for the acquisition and installation of the goods, is applied 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.
Maximum basis of deduction: 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 basis of deduction: 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 basis of deduction: 5,000 euros
Deduction amount: (5,000 x 20%) = 1,000