Change in the method of depreciation of photovoltaic power plants

The amendment to the Income Tax Act, which comes into force on 1 August 2025, brings significant changes to the depreciation of tangible assets used to generate electricity from solar radiation, i.e. photovoltaic power plants (PV plants).

The main change is the abolition of the existing special type of depreciation for PV plants, which was set for a period of 240 months without the possibility of interruption. This long-term depreciation method is now replaced by a new one which will be applied to PV plants, which can start depreciating from 1 August 2025.

At the same time, photovoltaic plants that were classified after 30 June 2024 and for which depreciation started from that date will no longer be eligible for the new depreciation method under the new wording of the law.

In the case of PV plants that were classified before this date, the existing rules for determining tax depreciation as set out in Section 30b of Act No. 586/1992 Coll. on Income Taxes continue to apply.

It will now also be possible to discontinue tax depreciation (e.g. due to a tax loss).

This legislative change applies in particular to entrepreneurs and companies that invest in photovoltaic power plants and use photovoltaic power plants to secure, maintain or obtain taxable income.

If you have any questions or request a review of depreciation, please do not hesitate to contact PKF APOGEO's tax team.