Indeed, in accordance with section XIII of article 40 of the Income Tax Law, the percentages of deduction of fixed assets are “100% for machinery and equipment for the generation of energy from renewable sources or systems of efficient cogeneration of electricity.
The Tax Administration Service will consider solar, wind, hydraulic, geothermal energy and energy from biomass or waste as renewable sources.
Who can deduct the investment for installing a solar panel?
Legal entities and individuals with business activity can access this right. But with the following considerations:
“As long as the machinery and equipment are in operation or functioning for a minimum period of 5 years immediately following the fiscal year in which the deduction is made (…) Taxpayers who fail to comply with the minimum term established in this paragraph must cover, where appropriate, the corresponding tax.
To demonstrate this, “the taxpayer must submit complementary declarations for each of the corresponding years.” This means that each year the Treasury will require the information indicating that the solar panel system is in operation.