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V2744-14 13 October 2014 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · deducción por inversiones medioambientales

It is not possible to determine whether a photovoltaic installation allows for the deduction for environmental investments

A company inquires whether it can deduct a percentage of the investment in a photovoltaic installation in its Corporate Income Tax. The DGT indicates that, with the information provided, it cannot rule on the right to the deduction.

The question raised

Question posed: Does the inquiring company have the right, in its Corporate Income Tax return, to deduct a certain percentage of the investment made due to it being an environmental investment? If so, what would be the amount of the deduction and over what period could it be applied?

The DGT's ruling

The regulations allow for the deduction of 8 percent of investments in new tangible fixed assets intended to obtain yields from renewable energies, such as solar. However, the DGT cannot confirm whether the inquirer meets the requirements with the data provided. It is noted that the deduction is limited to 35 percent of the gross tax liability and that the same deduction cannot be applied to more than one entity.

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