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Press Release Oberfinanzdirektion Karlsruhe

BMF letter on tax incentives for energy efficiency measures in buildings used for own residential purposes published

The Federal Ministry of Finance has published a BMF letter on the tax incentives for energy efficiency measures in buildings used for own residential purposes. The BMF letter explains individual issues relating to the application of the tax reduction regulation pursuant to Section 35c of the German Income Tax Act (EStG) and the regulation on the determination of minimum requirements for energy efficiency measures in buildings used for own residential purposes.

Citizens thus receive an interpretation aid for many practical questions.
According to the provision of § 35c EStG, a tax reduction is granted for certain energy-related measures in buildings used for own residential purposes that are at least 10 years old. Tax incentives are granted for certain individual measures (e.g. thermal insulation of walls, replacement of windows or external doors, replacement or installation of a ventilation system or replacement of the heating system, etc.). The subsidy is granted through a deduction from the tax liability, so that the standard income tax is reduced.
In the year in which the measure is completed and in the following calendar year, a maximum of 7% of the expenses - a maximum of €14,000 in each case - and in the third year 6% of the expenses - a maximum of €12,000 - for the property can be claimed against tax. The tax allowance is therefore not dependent on progression.
A total of 20% of the expenses, but no more than €40,000, can be claimed per property for a single tax-privileged measure, so that expenses of up to €200,000 can be taken into account. This is also the maximum amount for several individual measures for a single beneficiary property.

To the BMF letter

 

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