Tax deductions for the renovation of buildings

Atri-Italy

Atri-Italy

Tax deductions for the house

The table summarizes the tax deductions – valid for 2017 – for the renovation of buildings, the purchase of furniture, energy savings and anti-seismic measures as foreseen on the basis of the budget law which has just been published in the Official Journal.

Here are all tax deductions for the house valid in Italy for 2017, and probably far beyond

CONSTRUCTION REDUCTION (Deduction of income tax)

– For individual residential property units: extraordinary maintenance, preservation and restoration, renovation of buildings
– For common areas of residential buildings: routine maintenance, extraordinary maintenance, preservation and restoration, renovation of buildings
– The construction of garages or parking places, the elimination of architectural barriers, the sanitation of asbestos, works to prevent domestic accidents, measures to prevent illegal acts, etc., wiring of buildings.

Maximum amount of expenditure for the calculation of the deduction
– from 26.6.2012 to 31.12.2017 = 96,000 €
– dall’1.1.2018 = 48,000 €
The measurement of the deduction (gross tax)
– from 26.6.2012 to 31.12.2017 = 50%, in ten annual installments
– dall’1.1.2018 = 36%, in ten annual installments

Accessories and Furniture and Major Appliances (Deduction of Income Tax)
Purpose of the Fund
– Purchase of furniture and “major household appliances” (eg refrigerators and dishwashers.) At least A + (A for ovens), for equipment for which the energy label is intended, finalized to the furnishing of the building under renovation.

Maximum amount of expenditure for the calculation of the deduction
(A) from 06.06.2013 to 31.12.2017 = EUR 10 000 (the costs covered by this measure are calculated for the enjoyment of the tax deduction, irrespective of the amount of expenditure incurred for renovation work benefiting from the deductions from income tax)

(B) from 1.1.2016 to 31.12.2016 = EUR 16 000 of expenditure documented for the purchase of furniture and furniture for the main residence for young couples (forming a married or cohabiting fcouple as husband and wife, at least three years, in which one of the two did not exceed 35 years) purchasers of real estate units to use as their principal residence “. This benefit may not be combined with the measure referred to in paragraph (a).

Measurement of the deduction (gross tax)
– from 06.06.2013 to 31.12.2016 = 50%, in 10 annual installments
– from 1.1.2016 until 31.12.2016 = (young couples for furniture purchase) 50%, in 10 annual installments
– from 1.1.2017 until 31.12.2017 = 50% of the costs referred to in point (a) in 10 annual installments incurred in the year 2017 limited to the resumption of housing in the year 2016 or has started in 2016 and will continue in 2017

Measures for energy saving (Income tax deduction / IRES)
Purpose of the Fund

– Interventions aimed at the rehabilitation of buildings
– from 1.1.2016 are also deductible expenses incurred for the purchase, installation and implementation of multimedia devices for the remote control of heating or hot water or air conditioning housing units,  and tools to increase awareness of energy consumption by users and to ensure efficient operation.

Maximum amount of deduction
– from 06.06.2013 to 31.12.2017 = interventions to reduce the energy requirements of existing buildings: 100,000 euros; Interventions on walls, windows (including frames) on existing buildings: 60,000 euros; Installation of solar panels: EUR 60 000; Replacement of winter heating systems: EUR 30 000

– from 1.1.2018 apply the rules and limits of interventions related to the renovation of buildings

The measurement of the deduction (gross tax)

– from 06.06.2013 to 31.12.2017 = 65%, in 10 annual installments
– dall’1.1.2018 = 36%, in 10 annual installments

Particularly important energy saving measures (Income Tax Deduction / IRES)
Purpose of the Fund
– energy-saving measures with respect to the common parts of condominiums under sections 1117 (condominium) and 1117-one (super condominium) of the Civil Code or affecting all the units that make up the individual condo

Maximum amount of deduction

– from 06/06/2013 to 31/12/2021 = interventions to reduce the energy requirements of existing buildings: 100,000 euros; Interventions on walls, windows (including frames) on existing buildings: 60,000 euros; Installation of solar panels: EUR 60 000; Replacement of winter heating systems: 30,000
– From 1.1.2022 apply the rules and limits of interventions related to the renovation of buildings

The measurement of the deduction (gross tax)

– from 06.06.2013 to 31.12.2016 = 65%, in 10 annual installments
– dall’1.1.2017 = 36%, in 10 annual installments

Claims assigned to suppliers

For expenses incurred in the redevelopment of the common areas of condominiums, the persons who are in the “no tax zone” (retired, employed and self-employed), instead of the deduction Of the gross tax may be used to transfer the credit corresponding to the suppliers who carried out the work.

PARTICULAR MEASURES TO SAVE ENERGY ON PARTS OF COMMON COMMODITIES
(Income Tax Deduction / IRES)
Purpose of the Fund
(A) improving the energy efficiency of interventions in common areas of dwelling units that affect the building envelope with an incidence greater than 25% of the gross area of ​​the building of the same dispersant
(B) improvement of energy efficiency measures for common areas of dwelling units designed to improve the winter of energy performance and in summer and with the least average quality referred to in D. Mr. Ministère du Développement économique 26.6.’15

Maximum amount of expenditure for the calculation of the deduction
– Dall’1.1.2017 until 31/12/2021 = 40 000 € multiplied by the number of building units that make up the building
– From 1.1.2022 apply the rules and limits of interventions related to the renovation of buildings

The measurement of the deduction (gross tax)
– From 1.1.2017 until 31/12/2021 = 70%, for the expenditure referred to in point (a), in 10 annual installments
– From 1.1.2017 until 31/12/2021 = 75% of the expenditure referred to in point (b), in 10 annual installments
– dall’1.1.2022 = 36%, in 10 annual installments

Oath

The existence of the conditions set out in (a) and (b) shall be subject to oath by qualified professionals through certification of the energy performance of the buildings referred to in D. M. (Ministerial Decree) of the Ministry of Economic Development 26.6.’15.

Claims assigned to suppliers
For expenses incurred from 1.1.2017 to 31/12/2021 for the redevelopment of the common parts of condominium buildings in points (a) and (b), the beneficiaries, instead of the gross tax deduction, may opt for the sale of the credit corresponding to the suppliers who have carried out this work or to other private entities, with the right to the subsequent transfer of the application (excluding sale to credit institutions and financial intermediaries). The terms of such assignment shall be determined by specific decision of the Director of Revenue.

SEISMIC WORK – (Deduction of income tax / IRES *)

Purpose of the Fund
– Specific interventions in buildings (used as main residence or for productive activities) falling into seismic zones 1 and 2 whose authorization procedures are started, after 01/01/2017
– From 1.1.2017 are also expenses incurred for franchising classification and verification of seismic properties.

Maximum amount of expenditure for the calculation of the deduction
– up to 31.12.2016 = € 96,000
– From 1.1.2017 until 31/12/2021 = 96,000 €
– From 1.1.2022 = 48,000 €

The measurement of the deduction (gross tax)
– up to 31.12.2016 = 65%, in ten annual installments
– From 1.1.2017 to 31/12/2021 = 50%, in five annual installments
– From1.1.2022 = 36%, in ten annual installments

Other measures
The facilitation mentioned in the tab, from 1.1.2017 to 31/12/2021, also applies to buildings located in seismic zone 3 whose authorization procedures are started after 01/01/2017

The strengthening of deduction measures

– Up to 70%, if the interventions result in a reduction in seismic risk which determines the change to a lower risk class.
– At 80%, if the interventions result in a reduction in seismic risk which determines the transition to two lower risk classes.
– Elevated to 75%, if interventions, carried out on condominium common areas, which reduces the seismic risk that determines the switch to a lower risk class.
– up to 85%, if the interventions, carried out on condominium common parts, which a seismic risk reduction that determines the switch to two lower risk classes

Guidelines
The guidelines for the classification of the seismic risk of construction and the way of attestation by the efficiency of the approved professionals of intervention will be fixed by special decree of the Minister of Infrastructure and Transport.

Claims assigned to suppliers
For expenditures incurred in anti-seismic measures in common parts of condominiums, the beneficiaries, instead of the gross tax deduction, may opt to transfer the corresponding credit to from’1.1.2017 to 31/12/2021. To suppliers who have the above mentioned interventions or to other private entities, with the right to the subsequent transfer of the application (excluding sale to credit institutions and financial intermediaries).

The terms of such assignment shall be determined by specific decision of the Director of Revenue.

Prohibition of cumulation
The deductions referred to in this document are not cumulative with benefits payable for the same purposes, based on the special rules for interventions in earthquake-affected areas.

* Based on the interpretation of income

Provided by: Confedilizia – (construction association)

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