Since 2022, certain photovoltaic systems have been exempt from income tax in accordance with Section 3 no. 72 EStG. But how does this affect investment deductions (IAB) claimed before 2022? The Federal Fiscal Court (BFH) recently expressed doubts as to whether the IAB for a photovoltaic system from 2021 must be reversed if the system was purchased in 2022 and the new tax exemption applies (AdV proceedings, BFH, decision of 15.10.2024 – III B 24/24).
What is the background?
In this case, a taxpayer had claimed an IAB for a planned photovoltaic system in 2021. However, the system was not actually purchased until 2022, i.e. after the tax exemption came into force. The tax office subsequently amended the tax assessment and reversed the IAB. Reasoning: According to a BMF letter from 2023, IABs formed before 2022 for such tax-exempt investments should be reversed, as future income is not taxable.
Decision of the BFH: Serious doubts and suspension of enforcement
The BFH ruled that there are serious doubts about the reversal of the IAB, as the legal situation is unclear. Section 3 no. 72 EStG (tax exemption) and section 7g EStG (IAB) do not provide a clear answer as to how an IAB should be dealt with if the acquisition only takes place in the year of the tax exemption. The BFH therefore granted a suspension of enforcement (AdV), which means that the tax assessment will not be enforced for the time being.
Practical relevance: Appeals against tax assessments
The BFH decision shows that those affected have a good chance of successfully defending themselves against a reversal of the IAB. Taxpayers who are in a similar situation should lodge an objection against amending assessments and refer to the adV procedure.
Conclusion
The legal situation remains unclear and no final solution is foreseeable. Those affected should keep an eye on developments. Feel free to talk to us about the topic if it could be relevant to you!
