For amounts invested in self-consumption facilities or in the generation of electrical or thermal energy through renewable sources

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 where it appears, 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. Installations for producing electrical energy from photovoltaic solar energy or wind energy, for the electrification of homes isolated from the electrical distribution network that have a certificate for low-voltage electrical installations issued by the competent body.
3. Facilities for producing thermal energy from solar energy, biomass or geothermal energy for generating hot water, heating or air conditioning. Where required, they must have been registered in the installation certificate registry managed by the competent body of the Valencian Community.
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 IRPF 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 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 apply.
As of January 1, 2023 it will no longer be necessary to hold ownership of the property .
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 taxpayers individually according to the participation coefficient that corresponds to the home, provided that they comply with the rest of the established requirements.
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.

In the case of installations financed through a leasing contract, the installer's invoice will be addressed to the entity granting the leasing and the invoices paid by the taxpayer will be issued by the financial institution. This does not prevent the deduction from being applied provided that the purpose, the installation and the concepts included are clearly identified, with only the amount relating to the cost of acquiring the installation being deductible, without including other concepts such as interest, insurance or maintenance fees, among others. Additionally, it will be necessary to exercise the purchase option. Failure to exercise this option will result in the loss of the deduction applied, and the improperly applied deductions, together with late payment interest, must be included in the self-assessment corresponding to the tax period in which the breach occurred.

Deduction base

The basis of this deduction consists of the amounts actually paid in the year by the taxpayer to acquire the cost of the acquisition of the installation, without incorporating other concepts such as interest, insurance or maintenance fees, among others.

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 per dwelling and fiscal year.

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 dwelling, the limit of 8,800 euros will be distributed according to the proportion of amounts actually paid by each of them .
Any portion of the investment supported by public subsidies will not qualify for deductions.

Rules of application

Until fiscal year 2022 the amounts corresponding to the tax period not deducted for exceeding the limit of 8,800 euros could be applied, the excess, in the settlements of the tax periods that ended in the four immediate and successive years in the maximum amount allowed in each of the following fiscal years and in accordance with the percentage in force in the fiscal year in which the investments were made.

Therefore, if amounts are invested in a habitual residence in 2023 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 2023.
For investments made from January 1, 2023, investments in installations made in a home in the same tax period that exceed 8,800 euros will not be entitled to the application of the deduction either in that year or in subsequent years .

In the event that the deduction has not had a full or partial effect on the final result of the declaration due to insufficient total amount, the amounts not applied in said period may be applied in the liquidations of the tax periods that conclude in the four immediate and successive years.
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 cannot be applied in subsequent years.

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 .