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Thermomodernization relief – can foundation waterproofing be deducted?
- Paweł Gorzelec
- 2 hours ago
- 2 min read
The beginning of a new year is a time when taxpayers start preparing their annual personal income tax settlements. While completing PIT returns, it is worth remembering the tax reliefs that may significantly reduce taxable income. One of the most important reliefs for homeowners is the thermomodernization relief.
Recently, the Head of the National Revenue Information issued an individual tax ruling clarifying whether expenses related to foundation insulation and waterproofing may be deducted under this relief.
Scope of the thermomodernization relief
The thermomodernization relief allows taxpayers to deduct expenses incurred for thermomodernization projects carried out in a single-family residential building they own or co-own.
The maximum deduction limit is PLN 53,000, applicable to all thermomodernization projects carried out in all buildings owned or co-owned by the taxpayer.
Eligible expenses are listed in the Regulation of the Minister of Investment and Development of 21 December 2018, which specifies the types of construction materials, devices, and services qualifying for the relief.
Taxpayer’s question
The applicant was a co-owner of a single-family residential building constructed in the 1930s. Due to the lack of foundation insulation and an outdated drainage system, a decision was made to carry out works aimed at improving the building’s thermal and moisture protection properties.
The works included:
insulating the foundations with insulation boards installed on external walls,
installing a comprehensive waterproofing system.
The taxpayer asked whether the expenses incurred for foundation insulation and waterproofing qualify for the thermomodernization relief.
Tax authority’s position
The tax authority fully agreed with the taxpayer.
It confirmed that:
construction materials used for insulating foundations and protecting against moisture are explicitly listed among eligible expenses,
services related to foundation insulation are also included in the catalogue.
As a result, the tax authority confirmed that expenses incurred for foundation insulation and waterproofing qualify for deduction under the thermomodernization relief.
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