Owners or co-owners of single-family residential buildings can deduct expenses on building materials, devices, and services related to thermal modernization from the tax calculation base. The project must be completed within 3 years from the end of the tax year in which the first expense was incurred. The relief can be deducted both by taxpayers settling according to the tax scale and those paying a lump sum on recorded revenues.
For single-family residential buildings, it is possible to deduct costs associated with the expansion of a photovoltaic system with an energy storage system. These expenses must be documented with invoices issued by active VAT taxpayers. The total deduction amount for all thermal modernization projects in individual buildings cannot exceed PLN 53,000.
The deduction applies to expenses for building materials and devices:
1) building materials used for insulating building partitions, balcony slabs, and foundations that are part of insulation systems or used for protection against moisture;
2) a heat node with a temperature programmer;
3) a condensing gas boiler with control, safety, and regulating fittings, as well as an air supply and exhaust system;
4) a condensing oil boiler with control, safety, and regulating fittings, as well as an air supply and exhaust system;
5) a gas tank or an oil tank;
6) a boiler intended exclusively for burning biomass, as referred to in Article 2(1)(4a)(c) of the Act of August 25, 2006, on the System of Monitoring and Controlling the Quality of Fuels – provided that the operation of such a boiler is not prohibited by a resolution adopted based on Article 96(1) of the Environmental Protection Law Act of April 27, 2001.
7) connection to the district heating or gas network;
8) building materials included in the heating installation;
9) building materials included in the domestic hot water preparation installation;
10) building materials included in the electric heating system;
11) heat pump with accessories;
12) solar collector with accessories;
13) photovoltaic cell with accessories;
14) window and door joinery, including windows, roof windows with mounting systems, balcony doors, garage doors, non-opening transparent surfaces;
15) building materials comprising the mechanical ventilation system with heat recovery or with both heat and cooling recovery.
The deduction also covers expenses for the following services:
1) conducting an energy audit of the building before implementing the thermal modernization project.
2) performing a thermographic analysis of the building,
3) preparing design documentation related to thermal modernization works.
4) preparing an ornithological and chiropterological expert report.
5) insulating building partitions, balcony slabs, or foundations.
6) replacing external joinery, such as windows, roof windows, balcony doors, external
doors, garage doors and non-opening transparent surfaces.
7) replacing elements of the existing heating system or domestic hot water system, or installing a new internal heating system or domestic hot water system,
8) installing a condensing gas boiler,
9) installing a condensing oil boiler,
10) installing a heat pump,
11) installing a solar collector,
12) installing a mechanical ventilation system with heat recovery from exhaust air,
13) installing of a photovoltaic system,
14) commissioning and adjustment of the heat source and flue gas analysis
15) adjustment and hydraulic balancing of the installation,
16) dismantling the solid fuel heat source.
The taxpayer must ensure that the expenses were not financed or subsidized from public funds, were not included as deductible expenses, nor deducted from income under a lump sum, and were not included in other tax reliefs. Deductions are made in the tax return for the year in which the expenses were incurred. Unused amounts may be deducted in subsequent years, but not longer than for 6 years from the end of the tax year in which the first expense was incurred.
If the thermal modernization project is not completed within the required timeframe, the taxpayer must add the previously deducted amounts to the income for the year in which the project deadline expired.
If you have any questions or concerns regarding the above matter, please do not hesitate to contact our experts:
Piotr Włodawiec: wlodawiec[at]prokurent.com
Łukasz Moczydłowski: moczydlowski [at] prokurent.com
Paweł Wróblewski: 'p.wroblewski [at] elbudbis.pl
Authors:
Piotr Włodawiec – Attorney-at-law / Senior Partner
Łukasz Moczydłowski – Attorney-at-law / Senior Partner
Paweł Wróblewski – CEO ElbudBis
Relkonds
Material prepared in collaboration with:
