Energy efficiency works are deductible when the certificate is issued

The application of deductions for energy efficiency improvement works in Personal Income Tax (IRPF) has raised doubts regarding the exact moment a taxpayer can exercise this fiscal right. The Dirección General de Tributos (DGT) has recently clarified the timeframe and the calculation of the base for said deduction.

What the DGT has ruled

The DGT establishes that the deduction for energy rehabilitation works must be applied in the tax period in which the energy efficiency certificate is issued following the completion of the works. This certificate is the determining document to prove the improvement achieved.

In the event that the certificate is issued in a tax year different from the one in which payments for the works were made, the deduction will be applied in the year the certificate is issued. In this scenario, amounts paid from the entry into force of Royal Decree-Law 19/2021 until the date of the document's issuance may be included.

Furthermore, the tax authority specifies that the deduction base must be reduced by the amounts that have been or will be subject to subsidies through public aid.

What this means for you

If you are a homeowner and make investments to improve your energy efficiency, you will not be able to apply the deduction in the same year you pay the invoices if you do not yet have the updated energy efficiency certificate. The right to the deduction is contingent upon the existence of this technical document.

Additionally, it is fundamental to keep in mind that the tax benefit cannot be fully accumulated with other forms of aid. If you have received or will receive a subsidy for these works, you must subtract that amount from the base used to calculate the IRPF deduction.

What you should do

To ensure the correct exercise of this right, it is necessary to:

• Manage the issuance of the energy efficiency certificate immediately after the works are completed.
• Keep all invoices and proof of payment, even if they belong to tax years prior to the issuance of the certificate.
• Precisely identify the amount of any public aid received to avoid errors in calculating the deduction base.