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Tax deductions for energy efficiency and renovation

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Bonus - 
August 31, 2023

Tax Deductions 50%: Types of Interventions

The interventions eligible for a 50% tax deduction include:

  • Ordinary maintenance when carried out on common parts of condominiums.
  • Extraordinary renovations, restoration, and conservative redevelopment, as well as building renovations.
  • Removal of architectural barriers, anti-intrusion works, accident prevention, and restoration from calamities.
  • Installation of photovoltaic solar systems.
  • Purchase of a parking space related to the residence.
  • Installation of air conditioning units.
  • Purchase of a property renovated by a company.
  • Installation of an elevator.
  • Replacement of the garage shutter and alarm system.
  • Wiring and renovation of electrical systems.

The recent extension of deductions has also introduced a 50% bonus for the purchase of furnishings (furniture, washing machines, dishwashers, refrigerators, televisions, lamps) up to a maximum of €10,000, provided they have an energy class of no less than A+ and are intended for furnishing properties undergoing renovation.

Tax Deductions 65%: Types of Interventions

The interventions eligible for a 65% tax deduction include:

  • Replacement of heat generators with condensing boilers and high-efficiency heat pumps, low-enthalpy geothermal systems, and replacement of traditional water heaters with heat pump water heaters.
  • Replacement of windows and doors.
  • Insulation of external walls, floors, and roofs.
  • Solar panels for hot water production.
  • Installation of curtains, filtering films, and solar shading on windows and French doors.

90% Facade Bonus

This benefit consists of a tax deduction, to be divided into 10 equal annual installments, equal to 90% of the expenses incurred in 2020 for interventions related to the recovery or restoration of the external facade of existing buildings located in specific areas. Only interventions on the opaque structures of the facade, balconies, or ornaments and friezes are eligible for this benefit.

In particular, these areas are defined as Zone A and Zone B by the Minister of Public Works Decree No. 1444/1968. Zone A includes parts of the territory with historical, artistic, or environmental value, while Zone B includes other built-up areas. For Zone B, the surface area of existing buildings must not be less than 12.5% of the land area, and the territorial density must exceed 1.5 cubic meters per square meter.

If facade refurbishment works, apart from mere cleaning or external painting, involve thermal aspects or affect over 10% of the plaster surface area of the building, they must meet certain energy efficiency criteria outlined in specific decrees. ENEA (the Italian National Agency for New Technologies, Energy, and Sustainable Economic Development) will verify compliance with these criteria.

The regulations of Decree No. 41/1998 of the Ministry of Economy and Finance regarding tax deductions for building renovation expenses also apply.

Thermal Account: Types of Interventions

The "New Thermal Account 2016," established by the February 16, 2016 decree, offers incentives for energy efficiency interventions and the production of thermal energy from renewable sources in existing buildings of any cadastral category. Unlike tax deductions (50% and 65%, which reduce personal income and corporate income taxes), the financial contribution provided by this decree is directly credited to the bank account by the GSE (Energy Services Manager).

The Thermal Account is valid for interventions such as:

  • Thermal insulation of opaque surfaces in climate-controlled spaces.
  • Replacement of transparent closures, including windows and doors.
  • Replacement of winter heating systems with geothermal heat generators, biomass systems, condensing systems, electric heat pumps, or gas heat pumps.
  • Geothermal systems.
  • Installation of solar thermal collectors for domestic hot water production.
  • Replacement of old electric water heaters with heat pump water heaters.
  • Installation of shading and shading systems (curtains, blinds, Venetian blinds, shutters, mosquito nets, roller blinds, etc.).
  • Installation of home automation systems to improve domestic efficiency.

The Technical Engineering Studio of Ing. Micheletti supports clients from the design phase to the preparation of financing requests. Contact us for further information or a free quote, without any obligation.