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V1305-24 4 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por eficiencia energética

60% tax deduction for energy renovation applicable to residential buildings (including single-family homes)

A taxpayer inquired about the applicable tax deduction for installing solar panels on a single-family home and how to declare the subsidy received. The Directorate General for Taxes (DGT) clarified that the 60% deduction for building efficiency improvements can be applied and that the subsidy constitutes a capital gain.

The question raised

Whether in the 2023 tax year there is a right to apply the deduction for works for the improvement of energy efficiency in dwellings indicated in section 2 of additional provision 50a of Law 35/2006, of November 28, on Personal Income Tax or, conversely, whether the deduction provided in section 3 of the aforementioned additional provision may be applied.

The DGT's ruling

For a single-family dwelling, the 60% deduction provided in additional provision 50a.3 of the IRPF Law is applicable if a reduction in non-renewable primary energy consumption of at least 30% or an improvement in rating to class 'A' or 'B' is proven. The subsidy received constitutes a capital gain that must be attributed to the period in which the payment is received. However, the amount of the aid must be deducted from the deduction base if it is granted definitively.

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