For amounts invested in self-consumption facilities or 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, which regulates the regional section of the Personal Income Tax and other transferred taxes, of the Valencian Community

Deduction amount

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

40 percent of the amount of the amounts invested in installations carried out in the habitual residence of the Community Valenciana and in collective facilities of the building where it appears destined 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, on the Electrical Sector, and the regulations that develop it, that 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 modalities of self-consumption are distinguished:
  - Supply modality with self-consumption without surpluses: when the installed physical devices prevent the injection of any excess energy into the transportation or distribution network.
  - Supply modality with self-consumption with surpluses: when the generation facilities can, in addition to supplying energy for self-consumption, inject surplus energy into the transportation and distribution networks.
2. Installations for the production of electrical energy from photovoltaic or wind solar energy, for the electrification of homes isolated from the electrical distribution network that have the certificate of low voltage electrical installations completed by the competent body.
3. Installations for the production of thermal energy from solar energy, biomass or geothermal energy for the generation of domestic hot water, heating or air conditioning. When 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 amounts invested in facilities, intended for any of the purposes indicated above, carried out in the homes that constitute second homes for the taxpayer, as long as 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.
Those installations that are mandatory by virtue of the application of Royal Decree 314/2006, of March 17, which approves the Technical Code of Building (CTE).

Requirements for applying the deduction

The homes will have to 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 be used.
As of January 1, 2023 it will not be necessary to hold ownership of the property .
In the case of housing complexes under the horizontal property regime in which these installations are carried out on a shared basis, as long as 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, as long as they comply with the rest of the established requirements.
To apply the deduction proof of expense and payment must be kept , which must comply with the provisions of its applicable regulations.

In the case of installations financed through a leasing contract the installer's invoice will be directed to the leasing granting entity and the invoices paid by the taxpayer will be issued by the financial institution. This does not prevent the application of the deduction as long as the object, the installation and the concepts included are clearly identified, with only the amount related to the cost of acquiring the installation being deductible, without incorporating other concepts such as interest, insurance or maintenance fees, among others. It will also be necessary for the purchase option to be exercised. Failure to exercise this option will determine the loss of the deduction made, and the deductions improperly applied together with late payment interest must be included in the self-assessment corresponding to the tax period in which the non-compliance occurred.

Deduction base

The base of this deduction is constituted by the amounts actually paid in the year by the taxpayer to acquire the cost of acquiring the facility, without incorporating other concepts such as interest, insurance or fees maintenance, among others.

Note: To apply the deduction, proof of expense and payment must be kept, which must 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 legal act or business that gives the right to its application to be made by credit or debit card, bank transfer, nominative check or deposit into accounts in credit institutions.

The requirement for this requirement is established in Additional Provision sixteen of Law 13/1997, of December 23, which regulates the regional section of Personal Income Tax and other transferred taxes.

Annual maximum base

The maximum annual base of this deduction is established at 8,800 euros per home and year.

The limit of 8,800 euros per home and year applies to the group of taxpayers with respect to the same home.

In the case of several taxpayers and with respect to the same home, the limit of 8,800 euros will be distributed according to the proportion of amounts actually paid by each of them .
The part of the investment supported, where appropriate, with public subsidies will not give the right to deduction.

Application rules

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 ending in the four immediate and successive years in the maximum amount permitted by each of the following years and in accordance with the percentage in force at the year in which the investments were made.

Therefore, if amounts are invested on a habitual residence in 2023 and there are amounts pending deduction from years prior to 2021, the applicable percentage will be 20 percent with respect to the amounts pending deduction and 40 percent on the amounts invested in 2023.
For investments made since January 1, 2023, the 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 successive years .

In the event that, due to insufficiency of the full quota, the deduction has not had a total or partial effect on the final result of the declaration, the amounts not applied in said period may be applied in the settlements of the tax periods that end in the four years. immediate and successive.
If in a financial year amounts paid in the year and others from previous years pending deduction coexist, these will be applied first for the purposes of determining the amounts paid in the year that can be deducted in subsequent years.
The deduction corresponding to the 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 that its verification showed at the beginning of the same in, at least, the amount of the investments made.

For these purposes, the increases or decreases in value experienced during the aforementioned tax period by the 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 financial situation .