Parts of the federal government’s housing and construction measures came into force on April 19, 2024. The amendments to the Income Tax Act contained therein are intended to create tax incentives for ecological housing construction, ecological renovations and the replacement of heating systems. Specifically, the following measures have come into force for residential buildings:
- For newly constructed residential buildings that are completed between January 1, 2024 and December 31, 2027 and meet certain ecological standards (bronze building standard, see also klimaaktivBronze), three times the depreciation can be claimed in the first three years. This corresponds to an annual depreciation of 4.5%.
- Thermal-energetic refurbishment and boiler replacement in residential buildings are subsidized with an eco-surcharge. This allows 15% of the expenditure to be taken into account as operating expenses. The scheme is limited to two years and is available for the first time in 2024. If the investment tax credit is claimed, the eco-surcharge is not available.
- The accelerated depreciation of construction costs in connection with renovation measures has been extended. In addition to the cases already covered, renovation measures for which a subsidy is paid out in accordance with Section 3 of the Environmental Subsidies Act can be depreciated at an accelerated rate (tenths or fifteenths depreciation instead of distribution over the remaining useful life of the building). This primarily affects ecologically oriented “redensification”. The preferential treatment applies for the first time for expenses from January 1, 2024 and should also apply if the requirements for the subsidy are met but no subsidy is actually received
In addition to the changes mentioned above, we would also like to point out that the foreseeable period for assessing whether letting is to be classified as an activity without the intention to generate income (“Liebhaberei”) has been extended.
In addition to the changes mentioned above, we would also like to point out that the foreseeable period for assessing whether rental is to be qualified as an activity without the intention to generate income has been extended. As a result, a total profit or total surplus must be planned within a period of 25 or 28 years (small letting) or 30 or 33 years (large letting). The previous observation period was 20 or 23 years and 25 or 28 years. This extension applies to lettings for which the observation period begins on or after January 1, 2024.
