Much has been said in recent months about climate change, the drought affecting Spain, the need for an energy transition,...

But, taking advantage of the next tax settlement: what deductions can apply companies and individuals linked to energy savings?

Certainly, as shocking as the magnitude of the problem is, not many.
 

These are summarized in the following:

1. AT THE INDIVIDUAL LEVEL.

1.1 Individual energy efficiency improvement works in habitual residence

1.1.1 . To reduce the demand for heating and cooling: 

The taxpayer may deduct 20% of the amounts paid between October 6, 2021 and December 31, 2023 for works carried out in the habitual residence or in that residence of which you are the owner, provided that it is leased. or in expectation of rent if it is rented before December 31, 2024.

The maximum base of this deduction will be €5,000 per year and the reduction in the demand for heating or cooling must be at least 7% (proving it with an energy efficiency certificate before starting the works and at the end of them). .

1.1.2 To improve the consumption of non-renewable primary energy:

The taxpayer may deduct 40% of the amounts paid between October 6, 2021 and December 31, 2023 for works carried out in the habitual residence or in that residence of which he is the owner, provided that he has leased it. or in expectation of rent if it is rented before December 31, 2024.

The maximum base of this deduction will be €7,500 per year and the consumption indicator of non-renewable primary energy (gas, oil and coal) must be reduced by at least 30% , or the energy rating of the home improved. until obtaining an energy class A or B.

The costs of the part of the work that is carried out in garages, storage rooms, gardens or sports facilities of the house, as well as in areas of the house where economic activities are carried out, will be excluded from the calculation of the deduction  .

1.2 Works to improve energy efficiency in buildings for residential use

Energy rehabilitation:

The owners of homes located in buildings of predominantly residential use may deduct 60% of the amounts paid for energy rehabilitation works, as long as these have been carried out between October 6, 2021 and December 31, 2024. .

It will be applicable, among other cases, to taxpayers who own a home in a residential building with the installation of solar panels and in which the energy efficiency improvement works  affect the building as a whole.

Energy rehabilitation works are considered to be those that generate at least 30% savings in the consumption of non-renewable primary energy or improve the energy rating of the home to category A or B.

The maximum base of this deduction will be 5,000 euros per year and may be applied during the following four years, provided that the total amount does not exceed 15,000 euros.

The parking spaces or storage rooms purchased with the home will be taken into account for the calculation of the deduction , however, the works carried out in the parts of the homes affected by economic activities are not included in the calculation. 

In all cases , the deductions are incompatible with each other, and it will be necessary to have an energy efficiency certificate that can compare the savings, before starting the works and when they are finished. The certificate must be issued no later than January 1, 2024. It is important to bear in mind that the deduction will be effective in the year corresponding to the date on which the certificate is obtained.

When the certificate is issued in a tax period after the one in which amounts were paid for such works , the deduction will be made in the latter, taking into account the amounts paid from October 6, 2021 to December 31 of said period. tax.

The work must have been paid for by transfer, bank check, credit or debit card or account deposit. 

Amounts paid are considered to be those paid for professional fees, project drafting costs, investment in equipment and materials, expenses for the issuance of energy efficiency certificates, etc.

1.3 Deduction of the amount of remuneration in kind

When a worker uses the company car for his private life, it is a payment in kind and must be computed in this way on his payroll. This amount is taxed with the rest of his salary for personal income tax and contributes to Social Security.

Valuation of taxation in kind:

• Use of the car by the worker without acquiring its property:

            Assumption 1, car owned by the company : 20% per year of the acquisition cost.

            Assumption 2, car owned by the worker : 20% per year on the market value of the car if it were new.

• Delivery of ownership of the car to the worker: acquisition cost for the company (including taxes).

In the case of vehicles considered energy efficient, the following deductions may be applied:

• 15% deduction: vehicles that do not exceed 120 g/km in C02 emissions with a price not exceeding 25,000 euros.
• 20% deduction: hybrid or internal combustion auto gas, LPG and natural gas vehicles up to 35,000 euros.
• 30% deduction: battery electric vehicles (BEV), extended range electric vehicles (E-REV), plug-in hybrid electric vehicles (PHEV) with a minimum range of 15km and a price not exceeding 40,000 euros.

2. AT LEVEL OF LEGAL ENTITY

The possibility of freely amortizing in the tax periods that begin or end in 2023 has been introduced , investments in facilities for self-consumption of energy, as well as those facilities for thermal use for own consumption, which use energy from renewable sources and replace facilities that use energy of fossil origin.

It is established as a condition that the entry into operation of the new facilities occurs in the year 2023 and that, during the 24 months following the start date of the tax period in which the acquired elements come into operation, the total average workforce of the entity is maintained with respect to the average workforce in the previous twelve months.

In the event of non-compliance with the maintenance of average staff , the full quota that would have corresponded to the amount deducted in excess must be entered, in addition to the corresponding interest on late payment.

The buildings will not be able to take advantage of the freedom of amortization.

The maximum amount of the investment that may benefit from the free depreciation regime will be 500,000 euros.

Small companies of the IS must choose between applying:

• The regime of freedom of amortization provided for in  article 102 of the LIS (new elements with creation and maintenance of staff).
• The free amortization regime described here.