For many taxpayers, the thermal rehabilitation tax credit is an ideal way to reap both financial benefits and introduce eco-friendly equipment into their households to help improve air quality. The tax credit, which has been in effect since 2019, allows for a deduction of up to PLN 53,000!
Who can apply for the tax credit?
First of all, the offer is aimed at PIT taxpayers who are listed as owners or co-owners of residential buildings and incur expenses that entitle them to claim the tax credit. The concept of housing primarily includes detached buildings, semi-detached structures, terraced houses, as well as group housing.
In addition, PIT must be paid according to a tax scale – which includes both 18% and 32% rates, as well as a flat tax rate of 19%. The group also includes taxpayers paying a lump sum on registered income.
What expenses count towards the tax credit?
The tax credit, which can reach a maximum of PLN 53,000, covers a wide range of building materials and equipment, as well as services. It is worth noting that an individual can claim not only the tax credit, but also subsidies for photovoltaic installation from the “My Current” program.
Among the thermal modernization services, the main distinctions are:
- relief for building materials – usually materials for insulating balcony slabs, foundations or building envelopes; they can also be part of an insulation system or damp-proofing,
- equipment – various types of gas and oil tanks, heat exchangers with temperature programmer, connection to the gas or district heating network, gas and oil boilers, solar collectors and photovoltaic cells,
- installation components – mainly refers to the heating system, hot water system and electric heating system. In addition, a tax credit can also be obtained for mechanical ventilation systems based on recovery of heat or heat and cooling alone.
The tax credit also includes:
- installation of a photovoltaic system,
- execution of project documentation necessary for thermal modernization works,
- dismantling of a solid fuel heat source,
- installation of solar collectors, heat pumps,
- hydraulic balancing and regulation of the installation,
- energy audit before proceeding with thermomodernization,
- thermographic analysis of the building,
- installation of a gas boiler
How much is the tax credit?
The thermal modernization tax credit assumes that the duration of the project will be a maximum of 3 years. During this time, the taxpayer can deduct expenses from income, the maximum value of which can not be more than 53 thousand zlotys. In case the deducted amount does not cover in the taxpayer’s annual income – he has the opportunity to continue deductions, but no more than for 6 years.