Freedom to amortize facilities that use energy from renewable sources

Royal Decree-Law 8/2023, of December 27, in its article 18 modifies the section 1 of the Seventeenth Additional Provision of theLIS, to extend for the periods beginning or ending in 2024, the assumption of freedom of amortization for the investments made in facilities intended for self-consumption of electrical energy, as well as those facilities for thermal use for own consumption, provided that they use energy from renewable sources and replace facilities that use energy from non-renewable fossil sources, when these elements come into operation in 2024.

For the application of this assumption of freedom of amortization it is necessary that during the 24 months following the start date of the tax period in which the acquired elements come into operation, the total average workforce is maintained of the entity with respect to the average workforce of the previous twelve months.

For him calculation of the total average workforce The entity's employees will be taken into account, in accordance with the terms established by labor legislation, taking into account the contracted working hours in relation to the full working day.

The maximum investment amount that may benefit from the free amortization regime will be 500,000 euros.

In addition, taxpayers must be in possession of the documentation that proves that the investment uses energy from renewable sources. This documentation will vary depending on the type of renewable energy.

They will not be able to benefit from this incentive buildings and those installations that are mandatory under the regulations of the Technical Building Code, approved by Royal Decree 314/2006, of March 17, unless the installation has a nominal power greater than the minimum required, in which case that part of the cost of the installation proportional to the installed power above this minimum required may be subject to free amortization.

This assumption of freedom of amortization is incompatible with the assumption of freedom of amortization of article 102 of the LIS provided for small-sized entities, so said entities must choose to apply one of the two tax incentives.

You can consult the details of this incentive in the section 1d) from the section "Other cases of freedom of amortization" in Chapter 5 of this Practical Manual.