MAIN TAX NOVELTIES INTRODUCED BY ROYAL DECREE-LAW 19/2021, OF OCTOBER 5, ON URGENT MEASURES TO PROMOTE BUILDING REHABILITATION ACTIVITY IN THE CONTEXT OF THE RECOVERY, TRANSFORMATION AND RESILIENCE PLAN
INCOME TAX FOR INDIVIDUALS
Deductions for works to improve the energy efficiency of homes:
Article 1 of Royal Decree-Law 19/2021, of October 5, in section two adds a new Fifty Additional Provision to Law 35/2006 on Personal Income Tax establishing three new deductions for improvement works of the energy efficiency of homes, in the following terms:
1. Deduction for works to reduce the demand for heating and cooling: 20%
Homes in which the works can be carried out:
Habitual residence of the taxpayer or any other of his ownership that he has leased for use as a home or in expectation of rent, provided that, in the latter case, the home is rented before December 31, 2023.
However, the part of the work that is carried out in parking spaces, storage rooms, gardens, parks, swimming pools and sports facilities and other similar elements does not give the right, nor does the part of the house affect an economic activity.
Works that give the right to deduction:
Those that have reduced the heating and cooling demand of the home by at least 7 percent the sum of the heating and cooling demand indicators.
It is necessary that this end is accredited by the energy efficiency certificate of the home issued by the competent technician after the completion of the works, compared to the one issued before the start, with a maximum of two years, of the same.
Carried out from October 6, 2021 to December 31, 2022
Deduction basis:
Amounts paid from October 6, 2021 to December 31, 2022 for the works.
Maximum € 5,000.
Tax period in which it applies:
The one in which the energy efficiency certificate issued after the works has been issued. These certificates must be issued before January 1, 2023.
Deduction percentage: 20%
2. Deduction for works to improve non-renewable primary energy consumption: 40%
Homes in which the works can be carried out:
Habitual residence of the taxpayer or any other of his ownership that he has leased for use as a home or in expectation of rent, provided that, in the latter case, the home is rented before December 31, 2023.
However, the part of the work that is carried out in parking spaces, storage rooms, gardens, parks, swimming pools and sports facilities and other similar elements does not give the right, nor does the part of the house affect an economic activity.
Works that give the right to deduction:
Those that have reduced the non-renewable primary energy consumption indicator by at least 30 percent, or that achieve an improvement in the energy rating of the home to obtain an energy class "A" or "B", in the same rating scale.
These points must be accredited by the energy efficiency certificate of the home issued by the competent technician after the completion of the works, with respect to the one issued before the start, with a maximum of two years, of the same.
Carried out from October 6, 2021 to December 31, 2022
Deduction basis:
The amounts paid from October 6, 2021 to December 31, 2022 for the works are entitled to the deduction.
Maximum € 7,500.
Tax period in which it applies:
The one in which the energy efficiency certificate issued after the works has been issued. These certificates must be issued before January 1, 2023.
Deduction percentage: 40%
3. Deduction of energy rehabilitation works: 60%
Buildings in which the works can be carried out:
Homes owned by the taxpayer -located in buildings of predominantly residential use- and parking spaces and storage rooms acquired with them.
However, it does not entitle the part of the dwelling that affects economic activities.
Works that give the right to deduction:
Those that have reduced the consumption of non-renewable primary energy, by at least 30 percent, or the improvement of the building's energy rating to obtain an energy class "A" or "B", on the same rating scale .
These points must be accredited by the energy efficiency certificate of the home issued by the competent technician after the completion of the works, with respect to the one issued before the start, with a maximum of two years, of the same.
Carried out from October 6, 2021 to December 31, 2023.
Tax periods in which it applies:
In principle, it can be applied in 2021, 2022 and 2023. However, in order to apply the deduction, it is a requirement that the energy efficiency certificate issued after the works has been issued. These certificates must be issued before January 1, 2024.
Annual deduction base:
• When the certificate has been issued in the tax period:
The amounts paid from October 6, 2021 until the end of the tax period.
• When the certificate had been issued in a previous tax period:
The amounts paid in the year.
Maximum base € 5,000 per year.
Amounts paid not deducted for exceeding the maximum annual deduction base may be deducted, with the same limit, in the following four years, without in any case the accumulated base of the deduction being able to exceed 15,000 euros.
In the case of works carried out by a community of owners, the amount likely to form the basis of the deduction of each taxpayer will be determined by the result of applying to the amounts paid by the community of owners, the coefficient of participation that it had in the same .
Deduction percentage: 60%
4. Common rules to the previous deductions:
The previous deductions are incompatible with each other with respect to the same work.
The previous deductions are incompatible with each other with respect to the same work.
The amounts must be paid, by credit or debit card, bank transfer, nominative check or deposit in accounts in credit entities, to the persons or entities that carry out such works, as well as to the persons or entities that issue the aforementioned certificates, having to discount those amounts that, where appropriate, would have been subsidized through a public aid program or were to be subsidized by virtue of the definitive resolution of the granting of such aid.
In no case, will the amounts paid through deliveries of legal tender be entitled to deduct.
The amounts paid must be necessary for the execution of the works, including professional fees, costs of drafting technical projects, project management, cost of execution of works or facilities, investment in equipment and materials and other expenses necessary for their development. , as well as the issuance of the corresponding energy efficiency certificates.
However, the amounts paid for the costs related to the installation or replacement of equipment that use fossil fuels do not give the right to a deduction.
The energy efficiency certificates provided for in the previous sections must have been issued and registered in accordance with the provisions of Royal Decree 390/2021, of June 1, which approves the basic procedure for the certification of energy efficiency of buildings.
Non-integration into the Tax Base of the following rehabilitation aids:
Those granted by virtue of the different programs established in Royal Decree 691/2021, of August 3, which regulates the subsidies to be awarded to energy renovation actions in existing buildings, in execution of the Energy Renovation Program for existing buildings in municipalities with a demographic challenge (PREE 5000 Program), included in the Regeneration and Demographic Challenge Program of the Urban Rehabilitation and Regeneration Plan of the Recovery, Transformation and Resilience Plan, as well as its direct concession to the autonomous communities; Royal Decree 737/2020, of August 4, which regulates the aid program for energy renovation actions in existing buildings and regulates the direct granting of aid from this program to the autonomous communities and cities of Ceuta and Melilla; and Royal Decree 853/2021, of October 5, which regulates the assistance programs for residential rehabilitation and social housing of the Recovery, Transformation and Resilience Plan.