Housing Creation and Refurbishment
As specified in the personal income tax law a variety of special expenses can be deducted from income when the purchasing solar technologies for residences. The amount is capped at € 2,920 per year for ordinary tax payers but there is an additional deduction of € 2,920 for single income households and € 1,460 is granted if the household has at least three children. The maximum amount that can be granted per year is € 7,300 and only 25% of the amount may be deducted from the income.
Dwelling Improvement Act and Housing Promotion Subsidies
The redesign of existing subsidy schemes for construction of housing has been very successful to promote renewable energy use by households. In the province of Salzburg in 2003 more than 50% of newly constructed apartments were heated with biomass and solar. Some provinces have excluded new houses from subsidies that do not use renewable energy for heating.
Environmental Protection Law
The policy provides investment incentives to the heat producing part of a plant. Incentives for electricity production are granted only if a plant exceeds state of the art technology. Incentives are granted at between 10% and 30% of eligible costs depending on the type of investment with the objective of stimulating innovative technology.
The "Kommunalkredit" mainly administers federal grants and incentives for renewable energy producers such as firms or public entities. These federal grants typically constitute 30% of eligible costs and are granted to entrepreneurs that are investing in solar thermal installations or other renewable technologies above 10 m². These grants can also be combined with financial support from the provinces to cover 66% of costs.