This provides citizens with an interpretation aid for many practical questions.
According to the provision of Section 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 relief is 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 deducted from the tax liability, so that the standard rate of 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 - up to a maximum of €14,000 in each case - and in the third year 6% of the expenses - up to a maximum of €12,000 - can be claimed for tax purposes for the property. The tax relief is therefore independent of progression.
In total, there is a subsidy amount of 20% of the expenses per property, up to a maximum of €40,000, for a subsidized individual measure, meaning 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 eligible property.
To the BMF letter