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Thermomodernization relief in 2023. How much can we deduct?

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On Wednesday, the PIT settlement period for 2022 began. In 2023, we can still take advantage of the thermomodernization relief. How do I claim the tax relief? Who and when is entitled to the thermomodernization relief? We explain.

The thermomodernization relief is an incentive for taxpayers to thermomodernize single-family residential buildings (also terraced houses or semi-detached houses).

Read more: PIT settlement for 2022 has started. Important clarifications from the Ministry of Finance

How to calculate the thermomodernisation relief?

We deduct the relief in the tax return from:

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– income taxed according to the tax scale, – income taxed with a flat rate tax, – income subject to lump sum taxation on registered income.

The amount of the deduction may not exceed PLN 53,000. PLN for all thermal modernization projects in buildings we are the owner or co-owner of.

If expenses were taxed VATwe deduct the amount together with this tax, unless we have deducted this tax on the basis of the Act on tax on goods and services.

Expenditures on a thermomodernisation project that were not covered by our income (revenue) for the tax year in which we incurred them are deducted in subsequent years. We will not be able to deduct them for longer than 6 years, counting from the end of the tax year in which we incurred the first expense.

If we do not implement the thermo-modernization project within three years (counting from the end of the tax year in which we incurred the first expense), we will have to return the relief. This means that we will have to add to the income the previously deducted amount for the tax year in which the three-year period expired.

If, after the year in which we used the relief, we receive a refund of the deducted expenses for the implementation of the thermomodernization project, we are obliged to add the amounts previously deducted to the income (revenue) in the tax return submitted for the tax year in which we received this refund.

Thermomodernization relief. What can be deducted?

In the thermomodernization relief, you can deduct expenses incurred in the tax year for: – construction materials, – equipment, – services related to the thermomodernization of the building.

The list of goods that can be deducted includes, for example, building materials for insulation, photovoltaic cell, heat pump, gas or oil boiler, heating network connection, solar collector, or even a garage door. The services include, among others: furnace replacement, boiler installation, photovoltaic installation installation, window replacement or heat pump installation.

How to document the right to thermomodernisation relief?

The relief can be deducted if we have an invoice issued by an active VAT payer.

The basis for the deduction may also be an invoice containing value added tax issued by an entity from an EU Member State.

What testimony to make?

Deductions are made in the tax return PIT-36, PIT-36L, PIT-37 or PIT-28to which the PIT/O attachment (information on deductions) should be attached.

Read also: Medication relief. How much is it, who is entitled to it

Main photo source: Shutterstock

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