Are we about to see a change in the way photovoltaic power plants are depreciated?

In connection with the amendment to the Energy Act (Print 656), the Ministry of Industry and Trade has prepared the abolition of the existing special provision of the Income Tax Act, which sets out the method of calculating depreciation of tangible assets used for the production of electricity from solar radiation. This depreciation has so far been, in principle, evenly spread over 20 years without interruption. From now on, these tangible assets should be depreciated only in the traditional depreciation groups.

Transitional provisions state that for tangible property referred to in Section 30b, for which depreciation commenced before the date of entry into force of this Act, the Act as in force before the date of entry into force of this Act shall apply.

Furthermore, the transitional provisions propose that for tangible property referred to in Section 30b of Act No. 586/1992 Coll., as in force before the date of entry into force of this Act, for which depreciation commenced after 30 June 2024, the Act, as in force from the date of entry into force of this Act, may be applied from 1 July 2024."

The Ministry of Finance does not oppose the proposal a priori, so the likelihood of approval in Parliament is high.

Autor: Jiří Jandečka