Thermal improvement relief only for the property owner

The thermal improvement relief is a way to reduce the taxpayer’s income tax. A maximum of PLN 53,000 can be saved. In the case of spouses, this limit applies to each of them separately. The relief is available to the owner or co-owner of a single-family residential building.

In a recently issued individual interpretation dated 13 July 2022 (0113-KDIPT2-2.4011.338.2022.2.ST), the Director of the National Tax Information (KIS) expressed his opinion in relation to spouses, one of whom met the conditions for the application of the relief, but did not show the relevant income. The homeowner, a taxpayer, did not pay income tax as her pension did not exceed the tax-free amount. In 2021, the spouses jointly incurred the cost of a photovoltaic installation. Invoices were issued to the taxpayer and her husband. In her application, the taxpayer asked whether, as the amount of the deduction was not covered by her income, her husband, who was not the owner or co-owner of the property, could benefit from the deduction.

The Director of KIS found the taxpayer’s position to be incorrect. The thermal improvement relief is available to the owner or co-owner of a single-family residential building, while the taxpayer’s husband is not listed in the notarial deed as the owner or co-owner. The relief can therefore only be made by the taxpayer. As the corresponding income is not shown, pursuant to Article 26h(7) of the PIT Act, she may account for it in subsequent years, but no longer than within six years from the end of the tax year in which the first expense was incurred.

If you have questions about how to benefit from the thermal improvement relief, please contact our Real Estate Law Office in Warsaw, Poznan, Krakow and Wroclaw.