According to ECO, the Executive intends to ask for legislative authorisation to create environmental deductions in the IRS, similar to what it happened in 2020, although the green light has not been given for this proposal yet.

There are several categories of expenses that may be eligible for this deduction in the IRS, mimicking the categories included in the Sustainable Buildings Program (PES), in which the State gives a subsidy to those who apply through funds from the Recovery Plan (PRR), writes the publication.

Here are some of the expenses that will be eligible, if the Government proceeds with this environmental deduction in the IRS:

- Replacement of inefficient windows by efficient windows, of class equal to “A+”;

- Application or replacement of thermal insulation on roofs, walls or floors, as well as the replacement of entrance doors, using natural-based materials (eco-materials) or incorporating recycled materials or other materials;

- Space heating and/or cooling and/or domestic hot water (DHW) systems, using renewable energy, class “A+” or higher;

- Installation of photovoltaic panels and other renewable energy production equipment for self-consumption with or without storage;

- Interventions aimed at water efficiency through: i) Replacement of water use devices in the home with more efficient ones; ii) Installation of solutions that allow the intelligent monitoring and control of water consumption; iii) Installation of rainwater harvesting systems.

- Interventions to incorporate bioclimatic architecture solutions, which involve the installation or adaptation of fixed building elements such as shading, greenhouses and green roofs or facades, favouring natural-based solutions;

- Acquisition or installation of domestic composters or domestic containers intended for the selective collection of municipal waste (CAE class 22220).

According to ECO, despite the fact that more eligible expenses are foreseen in this deduction, the monetary limit of this deduction is lower than that foreseen in 2020: instead of €1,000 per household, it will be €500.