Starting in January 2025, homeowners planning investments in the thermal modernization of their buildings will need to comply with new regulations.

The thermal modernization tax relief, which has been a popular tax support mechanism for years, has been updated to better meet taxpayers’ needs and align with EU requirements.

The changes include both expansions, which may benefit taxpayers, and restrictions that introduce certain limitations to the current scope of deductions. What exactly is changing?

What Changes Benefit Taxpayers?

The new regulations introduce several positive changes that could significantly influence investment decisions for homeowners. The expanded list of deductible expenses includes:

• Micro Wind Installations
  Taxpayers will be able to deduct the costs of purchasing and installing wind energy systems for electricity production. This step promotes diverse renewable energy sources.

• Energy and Heat Storage Systems
  Investments in energy storage systems, which allow for efficient storage of surplus energy, will be covered by the relief. This is particularly beneficial for owners of photovoltaic installations looking to better manage energy consumption.

• Energy Management Systems
  The cost of purchasing and installing automatic energy management systems, such as smart thermostats or energy monitoring systems, will be deductible.

• Roof and External Door Insulation
  Previous uncertainties about whether roofs qualify as external barriers have been clarified. From the new year, expenses for roof insulation and the replacement of external doors will be included in the tax relief.

• District Heating Network Connections
  The costs of connecting to a district heating network will also be included in the list of deductible expenses. This is a significant convenience for those wishing to transition from individual heating sources to centralized heating systems.

What is No Longer Covered by the Relief?

Not all changes are beneficial for taxpayers. Some expenses that were previously deductible have now been excluded from the thermal modernization relief.

• Gas and Oil Boilers
  From 2025, the purchase and installation of gas and oil boilers will no longer be covered by the relief. This change is part of a broader policy shift away from fossil fuels toward renewable energy sources.

• Heat Pumps
  The relief will only cover heat pumps that are part of a heating system for indoor spaces. Air conditioners with heating functions will be excluded from deductions.

• Changes in Renewable Energy Equipment
  The previous term “equipment” in reference to renewable energy installations has been replaced with “infrastructure necessary for operation.” This more precise wording may, in practice, limit the range of deductible expenses.

Why Were These Changes Introduced?

The amendment to the regulations aligns Polish law with EU regulations, including provisions of the European Parliament and Council. The main objectives of these changes are:

• Improving the energy efficiency of buildings,
• Promoting the development of renewable energy sources,
• Reducing greenhouse gas emissions,
• Supporting the green transformation of the Polish economy.

These changes are part of Poland’s and the EU’s long-term climate goals, aiming to achieve climate neutrality in the coming decades.

What Does This Mean for Taxpayers?

The new regulations provide broader opportunities to deduct eco-friendly investment costs, but they also require greater attention when planning expenses. Individuals planning thermal modernization projects for their homes should familiarize themselves with the new rules to make the most of the available tax support.

Don’t Wait – Prepare Today!

The changes will take effect in January 2025, so it is worth planning your actions now and consulting experts on your plans.

Stay tuned for our updates to keep up with the latest legal changes and practical tax relief tips!