Solar photovoltaics: sustainable development tax credit cut from 50% to 25% and exclusion from overseas investment tax schemes

Article 36 of the 2011 finance act reduces the sustainable development tax credit rate for photovoltaic electricity generation equipment from 50% to 25% for expenses paid from 29 September 2010 (unless a quote was accepted with a deposit paid before that date). From the same date, photovoltaic installations are excluded from the overseas investment income tax reduction (Article 199 undecies B of the General Tax Code) and the overseas corporate tax deduction (Article 217 undecies), subject to transitional rules. Companies producing photovoltaic electricity are also excluded from the income tax and wealth tax reductions for investing in SMEs. The same article caps eligible opaque wall insulation expenses per square metre from 2011.