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Are Photovoltaic Panels Taxed?
Will Photovoltaic Panels Be Taxed in 2025?
The proposed changes to the Local Taxes and Fees Act could lead to a significant increase in taxes on photovoltaic farms. Currently, only the supports on which the panels are mounted are taxed. However, according to a statement from the Ministry of Finance, the current taxation method is expected to remain unchanged.
Are Photovoltaic Panels Taxed?
According to the current legal framework, property tax applies to buildings and structures. Administrative courts have ruled that photovoltaic panels themselves are not considered structures. This also means that panels installed on the roof of a building do not meet the criteria for being taxed separately from the building under property tax laws. A photovoltaic installation is not a separate object of property taxation. The installation of panels on a building’s roof does not affect the usable area of the building, meaning the panels do not impact the amount of property tax on the building.
However, it should be noted that the structural parts of technical devices, such as the structural components of photovoltaic panels, are considered structures and are subject to property tax if they are related to business activities. This position is well-established in case law, as demonstrated in the judgment of the Voivodeship Administrative Court in Szczecin on September 11, 2019 (I SA/Sz 239/19), where the court stated that the construction of the analyzed photovoltaic panel device and its function—converting solar energy into electricity—means that only its structural parts should be considered a structure, if they exist.
Will Photovoltaic Panels Be Taxed in 2025?
The Ministry of Finance has prepared a draft amendment to the Local Taxes and Fees Act. The main goal is to ensure transparency and clarity in the definitions of buildings and structures for the purpose of property taxation. According to the Ministry of Finance, the proposed change is intended to be tax-neutral for businesses. However, there are concerns that the new definition of a structure as a technical-functional whole could lead to the taxation of entire photovoltaic panels, not just their structural parts. The legislator, in the published draft amendment of the Local Taxes and Fees Act, has not explicitly resolved the uncertainties regarding the classification of photovoltaic panels and the basis for their property tax assessment, even though it explicitly states that the structural parts of wind and nuclear power plants are considered structures.
Nevertheless, the Ministry of Finance has issued a statement saying:
“At no stage of the legislative process has the Ministry of Finance considered taxing air conditioners, generators, or photovoltaic panels, and the dissemination of such false information serves only to cause unnecessary concern among entrepreneurs and citizens.” (PAP)
Therefore, we must wait for the next step in the legislative process.
