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.
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.
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