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– 26. September 2024

The taxation of photovoltaic systems

In accordance with Art. 32 para. 2 DBG, the Federal Department of Finance (FDF) determines which investments that serve to save energy and protect the environment can be treated as maintenance costs. According to the FDF ordinance, this also includes investments in photovoltaic systems, which is why these can be deducted for tax purposes.

Maintenance costs for the property can be deducted in the tax return if they are deemed to be ‘value-preserving investments’. In contrast, value-enhancing expenses and living expenses are not deductible. Under the provisions of Art. 32 para. 2 DBG and Art. 9 para. 3 StHG, energy-saving measures are generally deductible, as they are treated in the same way as value-preserving maintenance costs.

The decisive factor for deductibility is that the relevant costs for the installation of the photovoltaic system must have a material connection to the building or property in question. If this connection is missing, the investments no longer represent maintenance costs and are not deductible.

Energy-saving measures can relate both to the replacement of outdated components and to the first-time installation of new components or installations in existing buildings. Under current law, it is not possible to claim the deduction for energy-saving measures when constructing new buildings. In future, however, investments in photovoltaic systems should also be deductible for new buildings.

If the investments are subsidised by the public sector, a tax deduction can only be claimed on the part that was paid by the taxable person himself.

If you have any questions on the subject of tax law, our lawyers will be happy to assist you.

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