Rising energy prices and an emphasis on ecology are making pellet stoves more popular. Importantly, such a purchase is tax-deductible under the thermal rehabilitation tax credit, if it meets certain conditions.
Thermal modernization relief - what does it consist of?
The thermal modernization tax credit is an arrangement that allows owners or co-owners of single-family houses to deduct from the tax base the expenses incurred in improving the energy efficiency of the building.
Simply put - if you invest in insulating walls, replacing windows, installing a heat pump or a modern furnace, you can reduce your income by the costs incurred. As a result, you will pay less tax or receive a higher refund.
The relief is available to individuals who own existing single-family homes. Thus, it does not apply to buildings under construction or apartments in blocks of apartments. It is also important that the thermal modernization project be completed within three years of the first expense.
Pellet stove and the right to deduct
Not every pellet stove with the word "pellet" automatically entitles you to relief. Only the purchase and installation of an appliance that meets environmental standards can be deducted. It is worth asking the seller for documentation confirming these parameters, as you may need it in case of an inspection by the tax office.
How to prepare for the deduction?
The deduction is made in the annual PIT return (e.g. PIT-37 or PIT-36) through attachment PIT/O. The total amount of expenses incurred for the thermal modernization project is entered there. If the amount of the deduction exceeds your income in a given year, you can carry over the unused portion to subsequent years - for a maximum of six years after the first expense was incurred.
What about grants and other programs?
Some people finance the purchase of a pellet stove from programs such as Clean Air. It is worth knowing that the thermal modernization tax credit does not duplicate subsidies. This means that you can only deduct the part of the cost that was not financed by public funds. So if you receive a grant covering, for example, 40% of the investment, you can only include the remaining 60% in your PIT return. This is a very important detail - the tax office may require confirmation that there was no so-called double financing of the same expense.
The purchase of a pellet stove is not only an investment in ecological and cheap heating, but also a way to make real tax savings. The prerequisite is that the criteria for the thermal modernization tax credit are met, the necessary documentation is in place and the investment is completed within the stipulated timeframe.
If you are planning to upgrade your heating system, it is worth considering this mechanism already at the stage of purchase. In this way you will not only reduce emissions and heating bills, but also lower your obligations to the tax - legally and to the benefit of your household budget.
FAQ
1. Does the thermal improvement credit also cover the purchase of pellets as fuel?
No. The relief applies only to investment costs, that is, the purchase and installation of equipment and materials to improve the energy efficiency of the building.
2. Is an energy audit required for the deduction?
There is no such obligation. An energy audit can help you plan your investment, but it is not required by the tax office. It is enough that you have VAT invoices documenting the expenses and confirmation that the device meets the required environmental standards.
3. Can the relief be combined with a loan for thermal upgrading or a bank loan?
Yes, you can. If you finance the purchase of a stove with a loan, it does not affect the eligibility for the relief. It is only important that the expense was actually incurred and documented with an invoice issued to you.
