The provisions clearly state that only persons who own or co-owners of an existing single-family residential building can benefit from the thermomodernisation relief. Therefore, this relief cannot be benefited by those who have incurred inputs that meet the requirements of the thermal insulation relief during construction. The taxpayer who applied for an individual tax interpretation found this to be true.
The Director of National Tax Information received a request for an interpretation of the provisions of tax law on personal income tax as regards the possibility to benefit from the thermomodernisation relief. The applicant and her husband built a single - family home.
The spouses concerned about the environment to reduce carbon dioxide emissions into the atmosphere, installed a heat pump and a photovoltaic installation on which the applicant took credit.
The taxpayer then requested an interpretation of tax law, where it indicated that it was the owner of a single-family housing building in which the thermomodernisation project was applied and that it wanted to benefit from that tax credit.
The use of the thermomodernisation relief excludes its use in the case of expenditure incurred on construction materials, equipment and services related to the implementation of the thermomodernisation project in a single-family building under construction
According to the facts presented in the proposal, the work relating to the establishment of heat pumps and photovoltaic panels was carried out in accordance with the regulations, which was duly documented by quality certificates and VAT invoices.
The applicant also indicated that the thermo-modernisation expenditure was incurred in the building under construction. The taxpayer believes that a thermomodernisation relief should be granted to anyone, whether it is a house in the process of construction or already built.
She justified her position by the fact that the replacement of thermo-modernisation equipment is associated with huge losses, so that measures to thermo-modernise the house should take place already during its construction, in order not to contaminate the air from the beginning.
The Director of KIS disagreed, indicating that according to Article 3(2a) Act dated 7 July 1994 Construction law (Journal of Laws of 1994, item 414) Whenever a single-family housing building is referred to in the Act, it must be understood that a free standing building or a building in a twin, private or group building is intended to meet housing needs, which is a structurally independent whole in which no more than one can be separated two residential premises or one residential and utility premises of a total area not exceeding 30% the total area of the building.
According to the Director of the CIS, this provision clearly states that the building already built is being mentioned.
He also pointed out that, in the case of a newly built building, the taxpayer is not the owner of the building, but only the investments that lead to the building being built, and that this relief concerns expenditure strictly linked to the thermomodernisation of the existing building, incurred for its warming and modernisation of the heating system.
In summary, the thermomodernisation relief is granted to the owner or co-owner of an existing single-family housing building within the meaning of Article 3(2a) Construction Laws.
The use of the thermomodernisation relief therefore excludes its use in the case of expenditure incurred on construction materials, equipment and services related to the implementation of the thermomodernisation project in a single-family building under construction.
Therefore, the applicant who incurred thermo-modernisation expenditure in the building under construction cannot benefit from the thermo-modernisation relief.
Based on an individual interpretation dated 12 February 2020 No 0112-KDIL2-1.4011.11.2020.2.DJ
Author: Paweł Boś
Junior Tax Consultant, related to Russell Bedford Poland 2018. Author of numerous articles on legal and tax matters, published in the industry press. Law student at Leon Kozminski Academy in Warsaw.