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 of Volume 1 of this Manual.
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.
It will not 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 invested in a tax period not deducted for exceeding the limit of 8,000 euros (for tax periods ending up to October 28, 2022) or 8,800 euros (for periods ending up to December 31, 2022) could be applied , in 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 fiscal years and in accordance with the percentage in force in the fiscal year in which the investments were made.
From the 2023 tax year, amounts invested in a tax period exceeding 8,800 euros will not be eligible for deduction .

The amounts corresponding to the tax period not deducted due to insufficient full tax may be applied in the settlements of the tax periods ending in the four immediate and successive years .
When deductions for investments made in the fiscal year with outstanding balances from previous fiscal years occur in the same tax period, the amounts from previous fiscal years will be applied first, until the outstanding amounts are exhausted.

For example, if amounts are invested in a primary residence in 2024 and there are outstanding amounts to be deducted from years prior to 2023, the applicable percentage will be, on the one hand, the amount resulting from applying the outstanding balance from previous years and, on the other, 40% of the amounts invested in 2024 until reaching the limit that determines the amount corresponding to the full quota. Amounts not deducted due to insufficient full tax may be applied to tax returns from 2025 to 2028.

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 of Volume 1 of this Manual for verification of the financial situation.

Important: Once the information required for its calculation has been entered by taxpayers entitled to the deduction for amounts invested until 2022 or for amounts invested from 2023 , it will be automatically transferred to the sections:

-"Additional information on the regional deduction of the Valencian Community for amounts invested until 2022 in self-consumption facilities or for the generation of electrical or thermal energy through renewable sources", from Annex B.10 of the declaration.

-"Additional information on the regional deduction for the Balearic Islands for investments to improve the sustainability of the habitual residence, for the Canary Islands for energy rehabilitation works on the habitual residence, for Castilla y León for subsidized rehabilitation actions within the framework of state or regional housing plans aimed at improving the energy efficiency, sustainability and adaptation of the habitual residence, for the Region of Murcia for investment in renewable energy resource facilities and for the Valencian Community for amounts invested from 2023 in self-consumption facilities or for the generation of electrical or thermal energy through renewable sources", from Annex B.10 of the declaration.