Example: Deduction for improvement works that reduce the consumption of non-renewable primary energy

The couple formed by Mr. TP and Mrs. PZ, married under the legal regime of community property, carried out works in March 2024 in their habitual residence (located in a building for residential use) which consisted of the installation of insulating panels (backings) on the walls and thermal insulation in the false ceilings. Likewise, a new aerothermal heating and air conditioning system was installed in the home.

The total amount (including the issuance and registration of energy efficiency certificates) amounted to 28,000 euros. The amount was paid in two payments. One at the start of the work for an amount of 20,000 euros and another at the end for the remainder (8,000 euros). Payments were made by personal checks.

In addition, a grant of 8,000 euros was requested and obtained from the programme to promote improvements in energy efficiency and sustainability in housing.

To prove compliance with the requirements for applying this deduction, an energy efficiency certificate was requested before and after the works. The latter was issued on December 20, 2024, and resulted in the home being classified as energy class "B" on the energy consumption scale.

Determine the amount of the deduction for 2024, both for individual and joint taxation.

Solution:

Taxpayer Mr. TP:

Deduction base: 20,000 euros ÷ 2 = 10,000. (2 spouses)

Note: The amount of the public subsidy obtained (8,000 euros) is deducted from the total amount paid (28,000 euros). Therefore, 28,000 - 8,000 = 20,000
Maximum deduction base: 7,500 euros
Deduction amount: (7,500 x 40%) = 3,000

Taxpayer Mrs. PZ:

Deduction base: 20,000 euros ÷ 2 = 10,000. (2 spouses)

Note: From the total amount paid (28,000 euros) the amount of the public subsidy obtained (8,000 euros) is deducted. Therefore, 28,000 - 8,000 = 20,000
Maximum deduction base: 7,500 euros
Deduction amount: (7,500 x 40%) = 3,000

Joint statement by Mr. TP and Mrs. PZ

Deduction base: 20,000 euros = 20,000
Maximum deduction base: 7,500 euros
Deduction amount: (7,500 x 40%) = 3,000