The green bonus was introduced by Article 1, paragraph 12, of Law 205/2017 (2018 Financial Law).
It consists of a deduction equal to 36% of the expenses incurred for the greening of private outdoor areas, balconies and terraces.
The Financial Law for 2022 has extended the relief, setting a new deadline of 31 December 2024.
INTERVENTIONS
The green bonus covers expenses relating to the following interventions:
* Greening of private outdoor areas of existing buildings, including appurtenances;
* Fences;
* Irrigation systems;
* Construction of wells;
* Green roofs;
Are also included:
* the supply and planting of plants or shrubs;
* the rehabilitation of lawns (as long as they are not used for sports for profit);
* the restoration of gardens of historical and artistic interest.
The revenue Agency has specified that the interventions must be extraordinary.
Therefore, interventions on the whole garden or on the area in question are eligible for aid if they are such as to create a new green area or a radical renewal of the existing green area.
It is not required, however, that trees, plants and other plant species be purchased from the same supplier that carries out the work.
ELIGIBLE BUILDINGS
Interventions must be carried out on residential units, or on the common external parts of condominiums.
In this case, the deduction is granted to the individual condominium owner up to the limit of his share and on condition that the share has actually been paid to the condominium within the deadline for submitting the income declaration.
The deduction also applies to residential property partly used for commercial, artistic or professional purposes (so-called "mixed use").
BENEFICIARIES
The beneficiaries of the relief are taxpayers who own or hold, on the basis of a suitable title, the property on which the works are carried out:
* owners;
* bare owners;
* holders of a real right of enjoyment on the property (usufruct, use, dwelling, surface).
In the event of the death of the person entitled, the full benefit of the tax benefit is passed on only to the heir who has retained direct physical possession of the property.
DEDUCTIONS
In addition to the expenses incurred for the indicated interventions, the planning and maintenance expenses related to them are included in the benefit.
The deduction is not due, however, in the following cases:
* periodic ordinary maintenance of existing green areas not linked to an innovative intervention;
* works in economy.
The deduction is 36% for a maximum expenditure of € 5,000 for each residential unit: the deductible amount cannot, therefore, exceed the threshold of € 1,800.
When the intervention concerns the individual property together with the common parts of buildings in a condominium, the maximum expenditure ceiling rises to € 10,000.
In the case of residential buildings for mixed use, the deduction is recognised at a reduced rate of 50%.
The deduction can be accumulated with the benefits provided by the Code of Cultural Heritage and Landscape (also reduced by 50%).
The expenditure can be deducted over a period of 10 years and is divided into equal amounts on a straight-line basis.
Payments must be made using instruments that allow the transactions to be traced (e.g. the 'talking transfer').
The Green Bonus does not allow the transfer of credit or the discount on the invoice.
What about reviving your garden or giving your terrace a green face?
Contact us to arrange a consultation with one of our technicians.
