Rising household maintenance costs are prompting more and more people to take advantage of the thermal modernization relief. This is a beneficial solution for owners of single-family homes who want to reduce energy bills, improve their home’s energy efficiency, and simultaneously benefit from a tax preference. Additionally, individuals filing joint PIT returns can benefit twice. Check what conditions must be met to deduct thermal modernization expenses in your 2025 PIT return.
Who is entitled to the thermal modernization relief?
The thermal modernization relief is directed exclusively to owners and co-owners of single-family homes. This means that individuals who do not have legal title to the property cannot take advantage of this deduction. An example would be individuals residing in a home inherited from deceased relatives who have not yet completed formal probate proceedings.
The relief covers only single-family residential buildings that meet specific criteria. These are detached buildings, in semi-detached, terraced, or grouped development, provided that they:
- serve to meet residential needs,
- constitute a structurally independent whole,
- have a maximum of two separate residential units or one residential and one commercial unit, with the commercial unit’s area not exceeding 30% of the building’s total area.
The building must meet the above conditions no later than the date of utilizing the tax preference.
Who can take advantage of the relief in PIT 2025?
Taxpayers who file using the following forms can take advantage of the thermal modernization relief:
- PIT-28 – for flat-rate taxpayers,
- PIT-36L – for entrepreneurs paying linear tax,
- PIT-36 – for individuals filing under general principles (tax scale of 12% and 32%),
- PIT-37 – for taxpayers filing through a payer.
What expenses can be deducted?
The thermal modernization relief covers expenses for investments that improve a building’s energy efficiency and reduce energy demand. Deductible expenses include:
- Building insulation,
- Replacement of solid fuel boilers with ecological heating sources,
- Reduction of energy losses in heating networks,
- Installation of a connection to a centralized heat source,
- Conversion of energy sources to renewable ones or application of high-efficiency cogeneration.
A detailed list of materials, equipment, and services covered by the relief is specified in the Regulation of the Minister of Investment and Development of December 21, 2018. Expenses are divided into two categories:
- Building materials and equipment, e.g., heat pumps, solar collectors, gas boilers, thermal insulation.
- Services, e.g., installation of heating systems, building insulation, installation of photovoltaic panels.
Deduction limit and time conditions
The maximum deduction amount under the thermal modernization relief is PLN 53,000 per person. If the home is owned by two people (e.g., spouses), each can take advantage of the deduction up to this limit, which means the possibility of obtaining a relief of up to PLN 106,000.
To take advantage of the relief, the thermal modernization project must be completed within three years, counting from the end of the tax year in which the first expense was incurred. It is also important to retain VAT invoices as proof of incurred costs.
