Short info: IFB expanded to climate-friendly heating systems

Following an amendment to Section 11 of the Income Tax Act (EStG) – the relevant section for the investment allowance (IFB) – it is now also possible to claim the investment allowance for the acquisition and production of climate-friendly heating systems in connection with buildings. This includes heat pumps, biomass boilers, district heating/cooling heat exchangers, district heating/cooling transfer stations, and micro-grids. Beyond the IFB, there are no further income tax implications, for instance, in the assessment of a heating system as a building component, e.g., for depreciation purposes. As is well known, the IFB is to be applied for the first time to assets acquired or produced after 31 December 2022.

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