Your Tax Advantages
Any investment in photovoltaics is a completely legal means to reduce taxes. Consult your tax advisor for confirmation.
Huge tax savings can be generated even for the period prior to the acquisition, thanks to Germany’s tax law and its Investitions-Abzugs-Betrag (IAB) (translation: Investment Deductable Amount). Indeed, a taxpayer can deduct up to 40 percent of the investment through so called “mobile economical goods” which also means “machines”.
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After determing the IAB the taxpayer is granted a three year period to invest the money. This enables you to reduce tax three years in advance, without spending a single euro. Consult your tax adivsor for more specific information.
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A single IAB is limited to 200.000 euros per “mobile economical goods” unit.
Additional Write-off
A further 20 percent of the remaining acquisition costs can be claimed in the year of acquisition and over the following four years. Since this distribution will be determined in your tax declaration, it hands you another interesting tool to further reduce taxes.
Your sample calculation for expected
tax advantages: