The landscape of tax incentives in Italy, renowned for its complexity and ever-changing regulations, has been in the spotlight in recent times. The 110% and 90% tax incentives, commonly known as Superbonus, ecobonus, and sismabonus, have undergone significant revisions due to the financial challenges the country is facing. However, many taxpayers may not be aware of the deadlines and current conditions of these incentives. In this article, we will examine the eligibility criteria, and details of these incentives available until the end of the year and beyond.
Superbonus 2023
The Superbonus has sparked heated debate in recent times, as its cost has proven to be burdensome for public coffers. The government is evaluating changes that will be introduced with the budget law, scheduled for the end of December.
At the moment, however, what remains of the Superbonus and the concessions for building renovations is only valid until the end of the year. But which ones can still be used in 2023?
Single-family super bonuses
Single-family homes can take advantage of the 110% Superbonus until 31 December 2023, and it is still possible to access the credit transfer and invoice discount for this type of benefit, provided that at least 30% of the works have been completed by 30 September 2022 (as demonstrated by a SAL, progress report).
Furthermore, interventions on villas started from 1 January 2023 can obtain the 90% Superbonus provided that:
- those carrying out the interventions have a maximum income of 15,000 euros, calculated with the family building quotient system
- the expenses are incurred by 31 December 2023
- the house is either owned or held under another real right (such as the right of usufruct)
- the house is used as a main residence by the person carrying out the work.
In addition to this deduction, for low incomes, it is possible to obtain an extraordinary contribution of 10% of the expenditure incurred from 1 January 2023 until 31 October 2023. For this type of intervention, it is possible to choose the transfer of credit or the discount on the invoice only if the CILA-S (or request for the building permit) was submitted by 16 February 2023. If the CILA-S (or request for the building permit) was submitted after 17 February, it will only be possible to benefit of the 90% bonus in the tax return.
Superbonus condominiums and multi-family units
In condominiums and multi-family buildings consisting of 2 to 4 real estate units, the 110% Superbonus is valid for works carried out until 31 December 2023. It can be accessed if:
- the condominium assembly approved the works by 18 November 2022, and the CILA-S (or the request for the building permit) was presented by 31 December 2022
- for the works approved by the condominium assembly from 19 to 24 November 2022, the CILA-S (or the request for the qualifying building permit) was submitted by 25 November 2022
- in the case of demolition and reconstruction works, the building permit request was submitted by 31 December 2022
In these three cases, it is still possible to opt for the invoice discount or credit transfer.
Those who have not met the previous requirements can take advantage of the 90% Superbonus for works carried out until the end of 2023. There are no income limits for condominium interventions, but the same constraints on the transfer of credit apply. Therefore, it is possible to choose the transfer of credit or the discount on the invoice only with the presentation of CILA-S (or request for the building permit) by 16 February 2023.
Unless further changes are made, starting from January 2024, the Superbonus will drop to 70%, and in 2025, to 65%.
Sismabonus
For safety interventions against seismic events, the percentages and conditions of the Supersismabonus vary based on the type of property (single real estate units or condominiums).
For building interventions in municipalities affected by earthquakes from 2009 onwards (regardless of the type of building renovated), the 110% Supersismabonus is valid until 2025.
For those who do not fall into the previously mentioned categories, the deductions, which expire on 31 December 2024, vary from 50% to 85%, depending on whether the intervention concerns:
- static safety measures after disasters (50% deduction).
- change to a lower risk class for a single property (70% deduction, which becomes 80% if the change is between two classes).
- passage to a lower risk class in condominium interventions (75% deduction, which becomes 85% if the passage is of two classes).
- condominium interventions also aimed at the energy requalification of the building (80% deduction if the change is of one class, and 85% if the change is of two classes).
In these last three cases, it is not necessary for a calamitous event or earthquake to have occurred previously.
The Sismabonus also includes the so-called Sismabonus purchases, recognized to those who purchase properties located in the areas with the highest seismic risk (zones 1, 2 and 3) through the demolition and reconstruction of entire buildings to reduce their seismic risk. This bonus will expire on 31 December 2024, with deduction percentages between 75% and 85% depending on the reduction of seismic risk.
Architectural Barriers Bonus
The Architectural Barriers Bonus allows you to recover 75% of the expenses incurred, also allowing a discount on
the invoice that transfers the credit. This concession is valid until 2025. In this case, the deduction is foreseen for interventions aimed at overcoming and eliminating architectural barriers. However, in certain circumstances, this high percentage can also be applied to the replacement of fixtures.
Home Bonus
The Home Bonus, linked to extraordinary building renovations for single-family homes, as well as ordinary or extraordinary renovations for condominiums, is a permanent measure of our system and has no defined deadline. This incentive provides a standard deduction of 36% on a maximum expenditure of 48,000 euros. At the moment, and until the end of 2024, an enhanced deduction of 50% is in force on a maximum expenditure of 96,000 euros.
Furniture Bonus
The 50% deduction foreseen for the purchase of furniture and large appliances intended for the furnishing of properties undergoing renovation will expire at the end of 2024. However, there is a differentiation in the spending limits:
- until the end of 2023, the maximum spending limit on which to calculate the deduction is 8,000 euros.
- from 2024, the maximum spending limit on which to calculate the deduction will be 5,000 euros.
Green Bonus
The Green Bonus, which offers a 36% deduction, is recognized for the arrangement of private green areas of existing buildings, properties, appurtenances, fences, irrigation systems, wells and green roofs of roof gardens. This incentive will expire on December 31, 2024.
The deduction is due for each real estate unit for residential use, therefore in the case of multiple interventions during the year the spending limit is 5,000 euros in total.
50% VAT bonus for green homes
In this case, there is a 50% deduction on the VAT due for the purchase of residential properties with energy classification A or B, sold by construction companies. This incentive will expire on December 31, 2023.
First Home Bonus under 36 years
This significant incentive, reserved for young people under 36 who purchase their first home and have an ISEE not exceeding 40,000 euros, will expire at the end of 2023. The First Home Bonus under 36 includes:
- exemption from payment of registration, mortgage and cadastral taxes in case of purchase from private individuals.
- a tax credit equal to the VAT paid during the purchase in the case of purchase from a construction or renovation company.
Legislation regarding tax incentives in Italy is continuously evolving, and the changes made to the 110% incentives, sismabonus, and other measures have made careful planning essential for taxpayers. These incentives represent valuable encouragement for building renovations, seismic safety, energy efficiency, and other vital initiatives. However, staying informed about deadlines and eligibility criteria is crucial to maximize the benefits. Before embarking on any projects, it is advisable to consult current regulations and laws to ensure that you secure the intended tax incentives.
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