Up to 50 per cent of the acquisition costs can be claimed for tax purposes for the previous year via the IAB (investment deduction amount)
Anyone who invests in the solar modules of a photovoltaic system not only benefits from around 6 % yield after costs from the solar energy generated. In addition to making a meaningful contribution to the environment, there are considerable tax benefits for people with high incomes that make such an investment so interesting. Even in the year before the actual purchase of the photovoltaic system, an investment deduction amount (IAB) can be claimed. can be claimed for tax purposes in the amount of 50 per cent of the expected acquisition costs. An example: a family has a taxable income of €210,000. A solar system is now to be purchased for a purchase price of €200,000. Of this, 50 % equates to €100,000, which is now deducted from taxable income in the year before the system is purchased. This means that only €110,000 now has to be taxed and there is a large tax refund. Depending on creditworthiness and collateral, 75 % to 100 % of the purchase price of the solar system can be financed at the current favourable interest rates.
Further special depreciation allowances and arrangements are possible
Up to 50 per cent of the expected acquisition costs can be deducted from tax as an investment deduction in accordance with Section 7g of the German Income Tax Act. This is particularly interesting if the taxpayer's income is high in the year of deduction. After the purchase, there are further tax benefits in the form of an additional special depreciation of up to 20 per cent, which can be spread over the current year or 4 subsequent years. The remaining value is spread over 20 years using normal depreciation.
A solar power plant can be gifted tax-free to children or other persons
As a separate commercial enterprise for the generation of electricity, the exemption rules can be utilised when donating this business. This makes it possible to give and bequeath solar power plants free of inheritance tax.
The installation, technology and maintenance of the solar system are important and the contracts must fulfil all tax requirements
However, it is just as important to ensure that the economic framework data and the technology of the solar systems, as well as maintenance, guarantee long-term and smooth operation. Making an investment just for the tax benefits has never been a good decision. As an operator of photovoltaic systems, you become an entrepreneur for tax purposes, which is important for the recognition of the IAB. Unfortunately, many mistakes are made here in practice that can end up being expensive. If the mistake is only realised during a later tax audit, it is too late.
High returns without the use of equity capital
If the framework data is right, you as an investor will not have to invest any or only minimal capital of your own due to the tax returns. The loan is repaid after around 16 - 18 years through the income from the solar modules and you then receive the full income for many more years. You have leased the roof or the open space on which the system is mounted for 30 years and can then negotiate an extension with the owner. Your income may be secured by the EEG for 20 years. Comprehensive insurance cover protects you against unforeseen risks. Do you know of any comparable investment opportunities with similar parameters?
Conclusion
With solar power plants, you can make a profitable and solid investment while contributing something meaningful to our planet. This is only true if you have the right partners. In addition, there are the structuring options and tax returns via the investment deduction. Get in touch and let us check whether and how you can benefit from these opportunities.
