The Superbonus is one of the measures introduced by the Italian government to promote the country's economic recovery following the Coronavirus crisis.
The benefit consists in the possibility of deducting 110% of the income tax payable for IRPEF purposes for energy requalification and seismic risk reduction measures.
The maxi-deduction is also allowed for interventions included in the Ecobonus, Sismabonus and in the elimination of architectural barriers, under the conditions provided for by law.
Let's take a detailed look at what it involves.
LEADING AND TRAILING INTERVENTIONS
The application of the Superbonus is limited to certain types of building work.
Among them we distinguish the "driving" interventions, necessary and extraordinary, from the "trailing" interventions, accessory to the first.
In order to benefit from bonus 110 it is necessary that the trailing interventions are carried out together with at least one of the leading interventions.
Here are some examples of leading interventions:
. interventions on the common parts of buildings for the replacement of winter air-conditioning systems
. renovation of the thermal insulation of the building
. roof insulation
. static consolidation
. reduction of seismic risk
On the other hand, training interventions are:
. replacement of windows and doors
. purchase and installation of solar panels
. installation of lifts and goods lifts
. elimination of architectural barriers
. installation of charging points for electric vehicles
Interventions carried out within individual residential property units (and relative appurtenances) are always considered to be trailing interventions.
For the purposes of deducting the expenses incurred for trailing works, these must be linked to at least one leading intervention.
Demolition and reconstruction of buildings are eligible for the Superbonus only if they are approved as building renovation (paragraph 1, letter d, art. 3, p.d. 380/2001) and not as new construction.
Thanks to the changes introduced by the "energy decree", expenses for the installation of geothermal sensors used for geothermal systems (already included in the bonus) are also eligible for the Superbonus deduction.
OBJECTIVE SCOPE
Here are the building types to which the Superbonus applies:
. multi-family residential buildings (regardless of whether or not a condominium has been set up), as well as their appurtenances
. single-family residential buildings, as well as their appurtenances
. residential buildings with 2 to 4 building units belonging to a single owner
. individual residential condominium building units and their appurtenances
. single residential building units in a condominium that are functionally independent and have one or more independent accesses from the outside, as well as their appurtenances
. buildings belonging to Institutes for low-incomed housing
. buildings of category B/1 (colleges, hospices, convents, etc..), B/2 (nursing homes and non-profit hospitals) and D/4 (nursing homes and hospitals for profit) belonging to non-profit organisations
. buildings (or parts of buildings) used as changing rooms belonging to amateur sports associations/societies
Buildings falling into the following cadastral categories are not eligible for the Superbonus:
. A/1 (stately homes)
. A/8 (dwellings in villas)
. A/9 (castles, fine and artistic buildings of particular value), when not open to the public
EXTENSION OF THE OBJECTIVE SCOPE OF THE MAXIMUM DEDUCTION
The Superbonus, with the increased rate of 110%, has also been extended to the following categories of interventions:
a) anti-seismic interventions included in the Sismabonus (including the "Sismabonus purchases"), for expenses incurred from 1 July 2020 to 30 June 2022
b) interventions carried out for the elimination of architectural barriers, even if carried out in favour of persons over 65 years of age, provided that such interventions are carried out in conjunction with at least one of the earthquake-trailing interventions
(c) interventions carried out for the elimination of architectural barriers, even if carried out for persons over 65 years of age, provided that such work is carried out in conjunction with at least one of the energy-trailing
In case b), the intervention must not be already requested together with energy-trailing interventions.
THE APPLICATION OF THE SUPERBONUS TO NON-RESIDENTIAL UNITS
What happens when there are offices (A/10) and stores (C/1) within a condominium?
In its Circular 24/E/2020, the Italian Revenue Agency clarified that the applicability of the Superbonus is linked to the requirement that the building is residential.
Therefore, the owner or holder of non-residential property units can benefit from the 110% Superbonus under the following conditions:
. the total surface area of the real estate units for residential use exceeds 50% of the total surface area
. the deductible expenses actually incurred relate to work on the common parts of the building
When the building is intended for mixed use, partly residential and partly for business or professional activities, only the expenses incurred for the energy upgrading of the residential part can be deducted.
In this case the deduction will not be 110% but 50%, regardless of the amount of floor space or rooms actually used for business.
SUBJECTIVE SCOPE
Who has access to the Superbonus?
. Condominiums
. Natural persons, outside the exercise of business, art or profession
. Co-operative housing associations
. Institutes for low-incomed housing
. Non-profit organisation
. Amateur sports associations/societies (for buildings used as changing rooms only)
As regards 'natural persons', the law generically refers to 'taxpayer'.
Circular 24/E/2020 of the Italian Revenue Agency has specified that the deductions are available to:
. the owner
. the bare owner
. the promissory purchaser of the property in question who has taken possession, provided that a preliminary contract of sale has been signed and registered
. the holder of another right in rem of enjoyment (usufruct, use, dwelling or surface)
. the holder of the property on the basis of a lease, including finance lease, or loan agreement, duly registered, who has obtained the owner's consent to carry out the works
. family members of the owner or holder of the property
. the spouse or the member of the civil union, the relatives within the third grade and the relatives-in-law within the second grade
. de facto cohabitants
Persons with business income and those exercising arts and professions benefit from the 110% deduction only for expenses incurred for work on the common parts of the building, regardless of the instrumental nature of the property.
Therefore, a company owning a building within a condominium is excluded from the benefit due to the absence of the subjective requirement, and will not be able to deduct the expenses related to (trailing) interventions carried out on the single building unit.
APPLICATION OF THE DEDUCTION
The tax deduction equal to 110% of the expenses incurred is divided among those entitled to it in 5 annual instalments of equal amount for expenses incurred in 2021, and in 4 annual instalments (also of equal amount), for expenses incurred from 2022, within the limits of the capacity of the annual tax deriving from the income tax return.
DEADLINE
The new 2022 Financial Law has extended the expiry date of the Superbonus.
The deadlines, however, vary according to the beneficiaries and in some cases require the achievement of a state of progress of works by a certain date:
30 June 2022
* amateur sports associations/societies
31 December 2022 (with an advance of at least 30% of all works by 30 September 2022)
* single-family buildings
* individuals for works carried out on family buildings
* natural persons for works carried out on individual, independent building units
The original deadline for achieving 30% progress work was 30 June 2022.
The deadline was extended by a further three months by the "aid decree" (l.d. 50/2022).
31 December 2023 (with an advance of at least 60% of all the works by 30 June 2023)
* indivisible housing cooperatives
* Institutes for low-incomed housing and equivalent organisations
* natural persons for interventions on individual units within the same building
31 December 2025 (differentiated rates: 110% for 2023, 70% for 2024, 65% for 2025)
* apartment buildings and natural persons on common parts
* natural persons for interventions on single units in condominium
* individuals who own the building (from 2 to 4 units) in its entirety
* natural persons for interventions on individual units within the same wholly-owned building
* non-profit organisations
* voluntary associations
* social promotion associations
EXTENSION IN EARTHQUAKE-AFFECTED AREAS
The 2022 Financial Law has extended until 2025 the bonus for energy efficiency and anti-seismic improvements in earthquake areas.
The deduction concerns works carried out in the territories affected by seismic events since 1 April 2009 and for which a state of emergency has been declared (regardless of whether it has been extended).
The deduction is recognised with differentiated rates 110% for 2023, 70% for 2024, 65% for 2025) and for expenses incurred in a given time frame, provided the following advance of works is respected:
. advance of works equal to at least 30% by 30 June 2022, for expenses incurred by 31 December 2022.
. advance of works of at least 60% by 30 June 2023, for expenditure incurred by 31 December 2023
EXPENDITURE LIMITS
The Superbonus deduction is calculated on the basis of certain expenditure ceilings, which vary according to the type of building involved in the interventions:
* € 50,000, for single-family buildings or building units located in multi-family buildings but functionally independent and with one or more independent accesses from the outside
*€ 40,000, multiplied by the number of building units that make up the building for buildings with 2 to 8 building units
* € 30,000, multiplied by the number of building units in the building for buildings with more than 8 building units
ACCUMULATION WITH DIFFERENT BENEFITS
The Italian revenue Agency has clarified that for interventions other than those covered by the Superbonus, the benefits already provided for by current legislation remain applicable.
There are two possible scenarios:
1. A single intervention and different categories of benefits
In this case, the taxpayer can make use of only one of the above-mentioned benefits for the same expenses, choosing the most economically convenient one.
It is necessary to comply with the obligations specifically provided for in relation to the facility chosen.
2. More than one intervention and different eligible categories
If, on the other hand, more than one intervention is carried out that can be classified as different categories of benefits, the taxpayer can benefit from each facilitation, respecting the expenditure limits provided for the single facilitations. The expenses related to the different interventions must be accounted for separately.
It is also necessary to comply with the obligations specifically provided for each deduction.
COMPLIANCE CERTIFICATE AND ASSEVERATION
For the purposes of recognition of the maxi-deduction, and even in the case of simple use in the tax return, the Financial Law 2022 requires the production of the following documentation:
* compliance certificate of the expenses incurred by a qualified technician
* compliance visa (asseveration) by a professional (chartered accountants, bookkeepers, business experts and labour consultants, tax advice centres)
By certifying the congruity of the expenses, the qualified technician shall asseverate their congruity with respect to certain parameters indicated in the MITE decree of 14 February 2022 (for the interventions indicated therein), the Regional price lists or the DEI price lists. The technician must attach to the certification the estimated metric calculation indicating the maximum specific costs for each type of intervention.
The professional's certificate of conformity certifies the existence of the conditions for the recognition of the deduction.
If these costs are higher than those eligible, the deduction is applied within the maximum limits.
The compliance certificate and the asseveration are not required in the following cases:
. individual income tax return submitted on the basis of the pre-filled form
. individual income tax return made through the withholding agent
From 1 January 2022, the expenses incurred for the issuance of the above documentation are always tax deductible and enjoy the same rate associated with the bonus deduction.
The Italian Revenue Agency has clarified that the expenses incurred for certification and asseveration are also deductible in the period 12 November - 31 December 2021, (period of validity of the anti-fraud decree, repealed and merged into the Financial Law 2022).
ALTERNATIVES TO THE DEDUCTION
As an alternative to the deduction from the tax return, it is possible to opt for:
a) a discount on the invoice: a contribution, in the form of a discount on the amount due, up to a maximum amount equal to the amount due, advanced by the company that carried out the work.
By means of the discount on the invoice, the taxpayer can upgrade his property even if he does not have immediate liquidity.
In turn, the supplier will be able to choose whether to deduct from his tax return the amount corresponding to the discount granted or to assign the corresponding tax credit.
The supplier is not obliged to make the discount: it is simply an option allowed by law to the taxpayer.
b) assignment of the tax credit: assignment to a third party (the firm that carried out the work or the Post Office, banks, financial intermediaries, insurance groups) of the tax credit corresponding to the deductible work.
Through this instrument it is possible to obtain immediately the cash used to pay for the works, without waiting for the four years in which the deduction can be distributed.
A sum will be deducted from the tax credit: it’s the payment for the transfer.
THE NEW ANTI-FRAUD MEASURES
The need to act on the numerous frauds related to building bonuses has led to the issuance of the Fraud decree.
The new measures apply to all building bonuses that include the options of credit transfer and invoice discount.
The green bonus and the furniture bonus, for which the benefits is only available through deduction, are excluded.
Here is a summary of the main changes introduced by the decree:
1. possibility of making up to three assignments of credit: the last two assignments must be made to banks, financial intermediaries and insurance companies
2. prohibition of partial assignments: the credit must be assigned in full
3. introduction of the unique identification code: as from 1 May 2022, the credit will be assigned a code, which must be communicated on the occasion of each assignment
4. tougher penalties for false declarations: penalties for false declarations or serious omissions range from 2 to 5 years' imprisonment and from a € 50,000 to € 100,000 fine
5. use of credits subject to criminal seizure: such credits may only be used after the criminal effects of the measure have ceased
6. amendment of Article 316 bis of the Criminal Code: embezzlement of public funds and not only that of the State is also punishable under criminal law; the offence of misappropriation of public funds also includes subsidies, which were previously excluded.
MAINTENANCE OF THE IRPEF DEDUCTION IN CASE OF RESALE
In order to maintain the IRPEF deduction relating to the expenses incurred for the recovery of the building heritage and for energy requalification, in case of resale the selling party, with the consent of the purchasing party, must expressly declare at the time of the stipulation to reserve in its favour the deductions not yet used.
In the absence of an express declaration, the seller definitively loses the possibility of recovering the above-mentioned deductions.
The seller is obliged to produce the relevant documentation to the competent authorities.
THE ENERGY DECREE
The Energy Decree (Decree-Law No. 17/2022) has made certain changes regarding the options of the invoice discount and the transfer of credit in building bonuses.
Firstly, corporate income tax (IRES) taxpayers and VAT holders who must file their income tax returns by 30 November 2022 have until 15 October 2022 to notify the Revenue Agency of their intention to take advantage of the invoice discount or credit transfer options.
The new provisions apply to notifications of the first assignment of the credit or invoice discount sent to the Revenue Agency with effect from 1 May 2022.
THE AID DECREE
In the event that the number of possible assignments of credit had been exhausted, the 'energy decree' (l.d. 17/2022) had already allowed a further assignment by the banks in favour of parties with whom they had entered into a current account agreement.
The "aid decree" (Article 14, paragraph 1, letters b and c, d.l. 50/2022) intervened in the matter by allowing the advance assignment of credit by credit institutions to private professional customers who had entered into a current account agreement with the bank itself or with the parent bank (without the option of further assignment).
In essence, the aid decree specified the nature of the credit assignees, through an explicit reference to Article 6, paragraph 2-quinques, of Legislative Decree No. 58/1998 (Consolidated Law on Financial Intermediation, pursuant to Articles 8 and 21 of Law No. 52 of 6 February 1996).
As specified by the Revenue Agency (Circular 19/E of 27 May 2022), 'professional' customers are defined as those who possess the experience, knowledge and expertise necessary to make informed investment decisions and are able to correctly assess the risks involved.
REGULATORY REFERENCES
Since its introduction in 2020, the Superbonus has undergone several changes.
Below are the regulatory references useful for the reconstruction of the institute:
* Law decree 34/2020 (Relaunch decree), "Urgent measures concerning health, support to work and the economy, as well as social policies related to the epidemiological emergency from COVID-19"
* Circular No. 24/E of the Italian Revenue Agency of 8 August 2020, "Deduction for energy efficiency measures and reduction of seismic risk of buildings, as well as option for transfer or discount in lieu of deduction provided for in Articles 119 and 121 of Decree-Law No. 34 of 19 May 2020 (Relaunch decree) converted with amendments by Law No. 77 of 17 July 2020 – First clarifications"
* L. 178/2020 (Financial Law 2021), "Budget of the State for the financial year 2021 and multi-year budget for the three-year period 2021- 2023"
* Law decree 77/2021 (Simplification Decree-bis), "Governance of the National Recovery and Resilience Plan and initial measures to strengthen administrative structures and accelerate and streamline procedures"
* Law 234/2021 (Financial Law 2022), "State budget for the financial year 2022 and multi-year budget for the period 2022-2024"
* MITE Decree 14 February 2022 (New ceiling decree)
* Law decree 13/2022 (Fraud decree), "Urgent measures to combat fraud and safety in the workplace in the building sector, as well as electricity produced by plants from renewable sources"
* Law decree 17/2022 (Energy decree), "Urgent measures for the containment of electricity and natural gas costs, for the development of renewable energies and for the relaunch of industrial policies"
* Law decree 50/2022 (Aid decree), "Urgent measures on national energy policies, business productivity and investment attraction, as well as on social policies and the Ukraine crisis"
* Revenue Agency’s Circular No. 19/E of 27 May 2022, "Amendments to the Superbonus and Bonuses other than the Superbonus - Anti-fraud measures - Amendments to the rules on the assignment of credits under Articles 121 and 122 of Decree-Law No. 34 of 19 May 2020"
Would you like to take advantage of the Superbonus but don't know how to proceed?
Contact us to arrange an appointment with one of our technicians.
