Swindonstrasse" redevelopment area: What funding is available? What are the general conditions?

In the "Swindonstrasse" redevelopment area, owners are supported in their structural redevelopment measures.

Is there an upper limit for the refurbishment costs that I would like to claim for tax purposes in accordance with § 7h or § 10f EStG (Income Tax Act)?

Answer: No, a maximum amount is not specified. The scope of the redevelopment measures and their costs are only limited by the fact that only those measures can be taken into account that correspond to the objectives and purposes of the redevelopment (will be checked by the City of Salzgitter before the conclusion of the "redevelopment contract") and can be realized by you in financial terms.

Do I have to submit several offers to the City of Salzgitter in order to conclude the "redevelopment contract" (as a basis for the subsequent issue of the certificate for the tax office) or is one offer sufficient?

Answer: In principle, one offer is sufficient for the conclusion of the "renovation contract". In your own interest, however, it is advisable to obtain several offers for the measures you intend to take in order to compare the costs and implement the measure(s) as economically as possible.

Can refurbishment measures also be subsidized/tax-deductible for buildings owned by condominium owners' associations (WEG)? Who has to conclude the "refurbishment contract" or apply for the certificate for the tax office?

Answer: Refurbishment measures on condominium buildings are also eligible under Section 7h or Section 10f EStG. In principle, separate certificates are issued for the tax office for the respective condominiums and partially owned rooms. If several measures are to be carried out on or in the building, an overall certificate including the allocation to the individual sub-properties can also be issued under certain circumstances.

If refurbishment measures are to be implemented in the area of the condominium, the "refurbishment contract" with the City of Salzgitter must be concluded by the respective condominium owner or the certificate for the tax office must be applied for. If refurbishment measures relating to the common property are to be implemented, the person legally authorized by the condominium (usually the property management) is authorized to sign or apply.

Can refurbishment measures on rented buildings also be subsidized/tax-deductible?

Answer: Yes. In accordance with Section 7h, up to 100 percent (9 percent for eight years and 7 percent for four years) of such refurbishment measures can be claimed for tax purposes over a total of 12 years.

Is it worthwhile for me to claim the refurbishment costs for tax purposes?

Answer: The financial impact of the tax deductibility of renovation costs on your income tax depends on your taxable income and other factors relevant to income tax. It is best to clarify with your tax advisor the extent to which you will benefit from tax relief in accordance with §7h or 10f EStG. Please understand that the City of Salzgitter is unable to provide tax advice.

Can I also take advantage of the depreciation option under § 7h or 10f EStG if I receive subsidies/grants (KfW, BAFA, etc.) for the refurbishment measures?

Answer: Yes. However, as part of the application procedure for the certificate for the tax office, you are obliged to state and provide evidence of the use of the relevant subsidies and their amount. The relevant subsidies will be included in the certificate for the tax office.

Do I need a "restructuring plan" from an expert?

Answer: No. A professional "restructuring plan" is not required.

No energy consultant will come out for my small house. What can I do?

Answer: It is not necessary to involve an energy consultant to conclude a "refurbishment contract".

Further questions about deadlines, projects and eligibility:

How many "refurbishment contracts" can be concluded for my building per year and in total? For example, can I submit an application for a roof renovation this year and an application for a stairlift in three years' time?

Answer: The conclusion of corresponding "redevelopment contracts" depends on the necessity of the intended measures and your financial capacity to implement the measures. There is no numerical limit (per year and in total) for such renovation contracts.

Note: For the specific measure "stair lift", considerable additional subsidies may be available from the care insurance fund/KfW.

Is the depreciation period always 10 years or does it shorten from year to year? (2024/10 years - 2034/1 year)

Answer: The duration of the depreciation option and the amount in accordance with Section 7h and 10f EStG are as follows:

Year	§ 7h EStG	§ 10f EStG (owner-occupied residential property)
1 - 8	9 percent each	9 percent each
9 - 10	7 percent each	9 percent each
11 - 12	7 percent each
Total	100 percent	90 percent

For example, can private service roads between gardens also be taken into account for tax purposes?

Answer: It is not possible to take renovation measures on outdoor facilities into account for tax purposes.

Is the installation of a wood-burning stove (indirectly) subsidized?

Answer: No. Refurbishment measures that are intended to exceed the usual standard ("luxury refurbishment measures") cannot be taken into account for tax purposes when applying Section 7h or Section 10f EStG.

What is subsidized? Only the taxes I paid for the renovation measure(s) or the actual total costs (materials, wages, etc.)?

Answer: The total production costs are taken into account when offsetting the refurbishment costs in accordance with § 7h or § 10f EStG.

How long does the "Swindonstrasse" redevelopment process take and how often can I apply for funding?

Answer: The Salzgitter City Council has set an implementation period of 10 years; the redevelopment process will therefore end in July 2034.

"Redevelopment contracts" (as the basis for indirect funding) can be concluded throughout the entire implementation period.

How does it affect the tax claim if a "restructuring agreement" is only concluded and the certificate issued for the tax office in the last year of the restructuring process (2034)?

Answer: Once the certificate has been issued, the refurbishment costs can also be claimed in the following years after the end of the refurbishment process (for the breakdown, see question 10).

Will I get money back from the tax office if I invest in my building?

Answer: You can claim the costs of the agreed refurbishment measures in your income tax return, so that the amount of taxable income is reduced in accordance with the statutory regulations.

Depending on the amount of your taxable income, the tax burden may either be reduced or you may even receive a refund of the excess tax paid. For detailed information, please contact your tax advisor.

Further questions and answers:

Is the purchase of a new kitchen subsidized?

Answer: No, the costs of movable furnishings cannot be taken into account within the scope of the benefits under § 7h or § 10f EStG.

Can I terminate the contract (for example, if I lose my job and can no longer implement the construction measure)?

Answer: Yes, you can terminate the "redevelopment contract" concluded with the City of Salzgitter without giving reasons.

Can I submit an application for an electric charging station?

Answer: No, these costs are not covered by the provisions of §§ 7h and 10f EStG. You can submit a corresponding application to your basic electricity supplier.

What happens if I want to sell my house? Can I continue to submit the depreciation or will the new owners do that?

Answer: Please understand that the City of Salzgitter cannot provide advice on tax issues and you should contact your tax advisor.

What happens if I sign a "refurbishment contract" and cannot find a company. Do I have to implement the investment within a fixed time frame?

Answer: The "redevelopment contract" to be concluded on the basis of a concrete cost offer will specify, among other things, the intended implementation period. If this cannot be adhered to, please contact the Urban Redevelopment and Socially Integrative City Department immediately so that an appropriate adjustment can be made.

What about public spaces? Is the city involved in new parking lots or the design of public spaces?

Answer: The city of Salzgitter has identified areas in the "Swindonstraße" redevelopment area that are in need of improvement. This relates less to the repair of roads, sidewalks and squares than to improving the design of these areas. Specifically, this concerns the restructuring of the parking space in the access roads with the inclusion of greening elements (trees, green spaces). In particular, the requirements for climate adaptation with the keyword "sponge city" are to be taken into account in future measures. The city of Salzgitter has the area in its long-term focus for the implementation of measures; however, a concrete timeline depends on the budget situation and is currently not possible.

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Salzgitter

"Swindonstrasse" redevelopment area: framework conditions and funding