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A taxpayer inquired how a grant from the Andalusian Energy Agency affects the tax deduction for energy efficiency works on their home. The Directorate-General for Taxes (DGT) ruled that while the grant is not subject to Personal Income Tax (IRPF), it must be deducted from the base amount used to calculate the tax relief. This requires a tax regularisation if the deduction was previously claimed for the full amount.
Taxpayers receiving energy efficiency grants must ensure they do not double-benefit by claiming tax relief on the full cost of works without accounting for the subsidy received.
The tax team reviews your specific situation.
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