Financial Incentives for Investment in Residential Renewable Generation and Residential Efficiency

Country	Austria
Year Implemented	2001
Policy Status	Superseded
Funding	Maximum €7300 per annum per household in tax deductions
Related Policies	Federal Promotion of Extraordinary Efficiency in Buildings
Policy Type	•Financial   •Taxes and Tax Incentives     •Tax Credit •Incentives/Subsidies   •Grants   •Preferential Loans
Policy Target	•Bioenergy   •Biomass for Heat •Geothermal   •Heat •Solar Photovoltaic •Solar Thermal   •Water Heating
Policy Sector	•Electricity •Heating and Cooling (Domestic / Industrial Process)
Size of Plant Targeted	Small
Description	The personal income tax law specifies a variety of special expenses, including the purchase of solar and biomass technologies for residences, that can be deducted from income. This is capped at € 2 920 per year for ordinary tax payers. An additional deduction of € 2 920 for single income households, and € 1 460 is granted if there are at least three children living in the household. Only 25% of the amount may be deducted from the income. These tax credits form part the Austrian federal provinces' promotion of energy conservation in housing construction and the modernization of the existing building stock. This concerns not only thermal and heat insulation but also low-cost energy houses and "Passiv-houses" and the use of renewable energy sources, like heating systems based on biomass or solar installations. The Federal provinces grant subsidies or loans at favourable conditions under the consideration of existing technical construction standards ("Bauordnung"). In addition, the federal provinces grant subsidies under social conditions (e.g. handicapped persons, young families and/or young households). Supplementary supports, differentiated along energy-related specifications led to significant decreases in CO2 emissions of newly built dwellings. In 2003, this subsidy scheme was redesigned - most provinces attached the level of subsidies to criteria as energy efficiency and use of renewable energy for heating and hot water demand.
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