Roof renovation and the thermal insulation relief

Actions taken as part of thermal modernization allow you to increase the standard of the building, which significantly translates into the comfort of the household members. People who decide to undergo thermo modernization may take advantage of a special discount. Find out what conditions have to be met in order to be able to deduct expenses related to thermo modernization from income tax.

The thermal insulation relief – who can take advantage of it?

The thermal insulation relief was introduced in 2019 and applies to taxpayers who are owners or co-owners of single-family housing. Moreover, these buildings have to be used for residential purposes. The relief is available to the indicated persons when they incurred expenses related to therm omodernisation. These are primarily expenses related to the purchase of construction materials, as well as equipment and services related to the activities performed as part of thermo modernization.

 

What is important, in order to receive the relief, the entire project must be completed within 3 years, counted from the end of the tax year in which the first expenditure related to thermo modernisation was incurred. Moreover, the relief cannot be used if the building is under construction.

What can be deducted as a thermal insulation relief?

The deduction applies to thermal modernization projects, which include:

 

• Full or partial change of energy sources to renewable sources.
• An improvement resulting in a reduction in the demand for energy supplied as part of heating utility water or heating to residential buildings.
• An improvement that translates into a reduction of primary energy losses in local heating networks, as well as local heat sources that supply them.
• Making a technical connection to a centralized heat source, which reduces the cost of acquiring heat for buildings.
• Purchase of construction materials, equipment and services related to thermal modernization. The full list of deductible goods can be found in the Regulation of the Minister of Investment and Development of December 21, 2018 on determining the list of types of building materials, devices and services related to the implementation of thermo modernization projects (Journal of Laws of 2018 item. 2489).

 

Please note that only actual expenses can be reimbursed. Moreover, deductible goods must be purchased from active VAT taxpayers. This is due to the fact that the VAT invoice is the basis for the deduction.

What amount can be deducted?

Regardless of the number of completed projects related to thermal modernization, the deduction may amount to a maximum of PLN 53,000. The amount of real estate you own also doesn’t matter in this case. The double upper limit (PLN 106,000) applies only to spouses whose properties are covered by joint ownership.

 

The amount of incurred expenses has to be documented with VAT invoices. If the expenses were subject to value added tax, the full amount including tax is taken into account in the context of the deduction. The thermal insulation relief is not payable in the case of expenses that have been:

 

• Financed by the National Fund for Environmental Protection and Water Management, and voivodship funds for environmental protection and water management.
• Returned to the taxpayer in any form.
• Included in tax deductible costs, deducted from income under the Lump Sum Act or included by the taxpayer in connection with the use of tax reliefs within the meaning of the Tax Ordinance.

 

It should be remembered that a taxpayer who has benefited from the thermo modernisation relief is obliged to calculate the appropriate amount previously deducted from income for the tax year in which he received the refund.