Item Illustration : Grants and Tax Benefits on Energy Efficient Improvements for Residences
Tax

Grants and Tax Benefits on Energy Efficient Improvements for Residences

Our 15th Tax Game focused on the question of whether countries have statutory subsidy programmes for climate protection in primary residences or any other property rented out for residential use.

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Tax

Grants and Tax Benefits on Energy Efficient Improvements for Residences

Our 15th Tax Game focused on the question of whether countries have statutory subsidy programmes for climate protection in primary residences or any other property rented out for residential use.

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19 partner countries took part in the survey and most of these countries have various programmes to reduce energy consumption for heating or cooling and to generate or store electricity through photovoltaic systems in different forms.

The subsidies are mostly in the form of direct subsidies for installation costs, but in some countries it is also possible to deduct a certain proportion of the costs from income tax.

The extension of subsidies to privately used properties is attributed to the worldwide increasing number of public support measures to improve climate protection and sustainability.

 

The following investments are involved :

A. Thermal renovation of buildings : insulation of walls, roof, windows, doors, outside heat protection etc.

B. Ecological energy : solar collector, heat pumps, biogas plant, air conditioner, etc.

C. Sustainable energy : Photovoltaic systems, storage of self-generated electricity, charging points of E-vehicles

 

 Answers of our partner countries to the survey :

Austria

A : grants up to € 42.000

B: grants up to € 23.000

C: no VAT

Cyprus

System of grants, tax credits and green loans

China

Certain proportion of tax reduction

El Salvador

Subsidized financial credits

Egypt

For industries 30% investment incentive as deduction of the net taxable profits

France

Staggered subsidies depending on income

A: between € 20 and € 60 per m2

Germany

A: grants or 20% from cost as income tax reduction

B: depending on income, grants up to 70%

C: no VAT

Greece

A : Tax deduction of 40% of eligible expenses over three years

C: Deduction double of the cost of investment from taxable income

Japan

Tax benefits on renewable energy installation

Lebanon

After the 2019 crisis grants for solar panels were not renewed

Netherlands

A: subsidy program for private home owners, example: for triple glazing windows € 65,50 per m2

Montenegro

Grants from the state Company : Elektropriveda

Poland

A: Tax deduction max. € 12.330

B : Grants max. € 6.460

C : Grants max. € 1.360

Portugal

Programs closed this year, C: VAT 6% instead of 23%

Spain

A: Tax deduction of max. 20% of amount paid, max. € 5.000/year

B: a tax reduction of max 40% of amounts paid, max. € 7.500/year, when the non renewable energy reduction is more than 30% 

Sweden

Tax reduction of max. 20% for solar cells and 50% for storage of electricity and charging points

United-Kingdom

A: Grants if the energy rating of the house is low

B: for heat pumps grants up to GBP 7.500, C: reduced VAT

U.S.A : 

Different programs of going green for home renovation, residential clean energy and insulation or Air Sealing systems. 30% tax credit of qualified expenses

 

Hans Ronneberger 

Rentrop & Partner - Germany