The questions presented by the instant to revenue
The instant presented three questions to the Revenue Agency regarding the tax treatment of production and transfer of energy from advanced agrivoltaic plants.
Automatic recognition of agricultural income – the instant asked if the revenues deriving from the sale of energy produced by a agrivoltaic system (5 MW) may be always considered connected to agricultural activity and therefore fall into agricultural income, in light of current legislation and respect for the criterion of architectural integration.
Possibility to build an advanced agrivoltaic system without restrictions – The instant applied if it is possible to create an advanced agrivoltaic system of 5 MW without having to respect specific conditions, such as a minimum extension of grown soil, which instead apply to traditional photovoltaic systems.
Prevalence of the volume of agricultural business and tax impacts in the event of extraordinary events – The instant asked if, in the event that the turnover deriving from the main agricultural activity is lower than that of the production of agrivoltaic energy for only one year due to exceptional events (e.g. climatic crisis or pandemics), it was possible to consider this situation as temporary and not to lose the right to subsidized taxation.
Connection and agricultural income criteria
The agency recalled art. 1, paragraph 423, of law no. 266/2005, according to which the production and sale of energy from renewable sources can be considered Connected and productive agricultural income activities only within certain quantitative limits. For photovoltaic systems, the limit is set at 260,000 kWh per yearwhile for the production exceeding this threshold, they will be subject to the flat -rate taxation provided for by paragraph 423 upon appealing at least one of the requirements referred to in letters a), b) ec) of point 2 of paragraph 4 of circular no. 32/E of 2009.In the absence of these requirements, the production and transfer of agrivoltaic energy produced over 260,000 kWh per year will be subject to ordinary business income regime.
To qualify the activity as connected to the agricultural onemust exist at least one of the following requirements:
- architectural integration of the plant on existing corporate structures;
- prevalence of the turnover resulting from agricultural activity with respect to energy production;
- possession of a hectare of land for every 10 kW of installed power, up to a maximum of 1 MW per company.
The agency has clarified that these criteria also apply to agrivoltaic systems in full, since, although they are designed in order not to subtract grounds from agriculture, they still fall into the category of photovoltaic systems.
Advanced agrivoltaic systems: when the requirement of architectural integration is respected
The instant claimed that the production of energy from advanced agrivoltaic plants should be considered always connected to agricultural activitysince these systems allow the cultivation of the underlying lands.
In the specific case, the agency highlighted that the plant designed does not fall within the requirement of architectural integrationsince the panels are not installed on existing corporate structures, but on independent poles.
Overall turnover: how do you calculate?
Regarding the requirement of the prevalence of agricultural business volume Compared to energy production, the agency clarified that the calculation must include the energy produced by all the company’s photovoltaic systems, including the agrivoltaic one.
Therefore, to maintain the flat -rate regime, it will be necessary that the turnover deriving from the main agricultural activity is higher than the turnover of the entire production of electricity from photovoltaic sources (therefore, by photovoltaic and agrivoltaic systems) exceeding the threshold of 260,000 kWh per year.
Furthermore, There is no temporary derogation In case of exceptional events (e.g. climatic or pandemic crisis), therefore exceeding the limit automatically involves ordinary taxation.
In conclusion, the Revenue Agency has established that agrivoltaic plants they do not enjoy a more favorable tax treatment compared to traditional photovoltaics.
