What is the Ecobonus?
The Ecobonus is a tax deduction of expenses incurred for interventions that increase the energy efficiency of buildings.
The deduction is separated from the income tax of individuals (IRPEF) and companies (IRES).
The Finance Act 2022 has extended the deadline for the use of the Ecobonus to 31 December 2024.
PURPOSE
The Ecobonus is part of the measures envisaged by the PNRR (National Recovery and Resilience Plan) launched by the Italian government to support and incentivize the country's economic recovery.
Ecobonus investments pursue specific purposes:
* encourage housing
* regenerate the urban fabric
* stimulate the construction sector
* to achieve the objectives of energy saving and reduction of emissions to 2030
* stimulate local economies
ELIGIBILITY OF THE INTERVENTION
The eligibility of interventions in Ecobonus is conditional on an improvement of at least two energy classes of the building, demonstrable through a comparison between the energy performance certificates (APE) before and after the intervention, and equivalent to an average energy saving (in relation to the average annual consumption of primary energy of the residential building) of about 240 kWh / m².
The minimum expected savings, both energy and emissions, must be equal to 30-40% compared to the volume recorded before the intervention.
The compliance of the intervention with the requirements of the law is certified by a qualified technician, who is civilly and criminally liable for the certification.
FACILITATED PROPERTIES
The buildings that can benefit from Ecobonus are:
* Multi-family buildings (condominiums established or not)
* Single-family buildings
* Single real estate units
* Buildings used in the exercise of business, arts or professions (offices, hotels, stores, etc..).
BENEFICIARIES
According to the law are eligible for Ecobonus:
* Condominiums
* IACP (Institutes Autonomous Popular Houses)
* Onlus
* Individuals
* Cooperatives of indivisible property houses
* ASD or SSD (amateur sports associations/societies), limited to buildings or parts of buildings used as changing rooms.
ADMITTED INTERVENTIONS
* Intervention of energy upgrading on existing building (insulation <25%)
* Intervention on the envelope of existing building (except the purchase and installation of windows including frames)
* Intervention of purchase and installation of windows including frames
* Intervention of replacement of winter air conditioning systems with condensing boilers ≥ class A
* Intervention of replacement of winter air conditioning systems with condensing boilers ≥ class A +, temperature control systems or with hybrid generators or heat pumps; intervention of replacement of water heaters
* Installation of solar panels/solar collectors
* Purchase and installation of solar screens, winter air conditioning systems with biomass fuels
* Purchase, installation and installation of multimedia devices for remote control (building automation systems)
DEDUCTIONS
The deduction is variable, depending on the case:
* from 50 to 65%
* from 70 to 75% (Ecobonus common parts)
* from 80 to 85% (Eco-sismabonus common parts)
* 110% when the Ecobonus can be associated with the Superbonus
The higher deduction is allowed provided that energy efficiency interventions:
* are carried out in conjunction with one of the driving interventions provided by the Superbonus (thermal insulation or replacement of winter air conditioning systems)
* ensure, as a whole, the improvement of two energy classes or, where not possible, the achievement of the highest energy class
* are actually completed and not just started
Replacing windows always qualifies for a 50% deduction, unless it is combined with one of the two maxi-interventions envisaged by the relaunch decree:
* implementation of thermal insulation on at least 25% of the building;
* replacement of the winter air conditioning system with centralised heat pump, condensation or micro-generation systems.
This is the only case in which it is possible to take advantage of the 110% Ecobonus also for windows.
In the case of property subject to constraints provided by the Code of Cultural Heritage and Landscape, the higher deduction is allowed for all interventions towed, even if the interventions are prohibited by building regulations, urban and environmental.
The expenditure incurred for the Ecobonus can be deducted over a period of 10 years.
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.
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.
It should be noted that 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 years in which the deduction can be distributed.
A sum will be deducted from the tax credit: it’s the payment for the transfer.
FAIRNESS OF EXPENSES AND CONFORMITY CERTIFICATE
When the taxpayer exercises the option of invoice discount or assignment of tax credit, 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 a professional
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
. interventions carried out in free building
. interventions whose total amount does not exceed € 10,000
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 endorsement 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).
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.
Excluded are the green bonus and the furniture bonus, for which the relief is only available through deduction.
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 Bills 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
Here are the main normative sources regarding Ecobonus:
* art. 1, paragraphs 344-347, l. 296/2006 (Finance Act 2007)
* art. 14, d.l. 63/2013, “Urgent provisions for the implementation of Directive 2010/31/EU on energy performance in buildings“
* d.l. 157/2021 (Anti-fraud decree)
* art. 1, paragraph 37, law 234/2021 (Finance Act 2022)
* 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“
* L.d. 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“
* L.d. 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”
Are you a property owner and would like to take advantage of the Ecobonus?
Contact us to make an appointment with one of our technicians.