It is the longest-lived deduction and probably also the best known, renewed from time to time when it expires, scheduled for Dec. 31, 2024, unless further extended.

It is no longer possible to take advantage of the invoice discount or credit assignment, the latter of which remains possible only for some existing interventions.

How does it work?

  • This bonus allows the deduction from income tax of half of the expenses incurred through a money transfer for building and technological interventions on the property. The deduction is spread in equal parts over a 10-year period and includes the installation of photovoltaic systems on residential buildings and their appurtenances with associated storage systems. 

    The measure also covers any upgrading of an existing system through a new section of plant, with an overall limit of 20 kWp and expenditure ceiling of 96,000 euros per property unit.

    The relief also covers VAT, which in these cases (as for many other nonincentivized works) is at 10 percent instead of 22 percent.

Superbonus 110%, 90% etc. (Art. 119 Dl 34/2020 or Relaunch Decree)

Under the Superbonus, the installation of a photovoltaic system is possible only as a “trailing intervention,” that is, as an operation that must mandatorily be subordinate to one or two “leading interventions,” consisting of the replacement of the thermal power plant and/or the construction of a thermal coat, and provided that the energy class of the building improves overall by at least two categories.

How does it work?

  • Carries a maximum of 110% of the expenditure incurred as a deduction from the IRPEF (see below for more details), through equal installments spread over 4 years. It cannot be combined (for the same interventions) with the 50% deduction for renovations or with other incentives such as the Conto termico.

For whom and for what buildings?

  • For individuals, public housing authorities and various non-profit organizations on interventions in existing residential buildings already equipped with a heating system.
  • Generally speaking, from 2023 the Superbonus deduction has dropped to 90 percent.

110% tax rate

For apartment buildings, the rate may remain at 110% under the so-called Aid-quater Decree (Decree 176/2022, converted with amendments into Law 6/2023) and the Budget Law 2023 (Law 197/2022), provided that:

  • the assembly has resolved the work by Nov. 18, 2022, and the Certified Notice to Proceed (Cilas), which serves as the permit, is submitted by Dec. 31, 2022
  • the assembly has resolved the work between November 19 and 24, 2022, and the Cilas is submitted by November 25, 2022
  • the permit application for demolition and reconstruction work is submitted by December 31, 2022.

For buildings up to 4 housing units, the Superbonus will continue to have a 110% rate provided:

  • the Cilas was submitted by November 25, 2022;
  • the permit, related to a demolition and reconstruction work, has been applied for by December 31, 2022.

For single-family buildings, the Superbonus will remain at 110% until September 30, 2023 provided that:

  • By September 30, 2022, work has been carried out for at least 30% of the intervention.

For nonprofit organizations and social promotion associations, which do not carry out social and welfare activities, the Superbonus will remain at 110% in 2023 provided that:

  • Cilas was submitted by November 25, 2022.

For nonprofit organizations, Voluntary Organizations and Social Promotion Associations that carry out social and welfare activities, the Superbonus will remain at 110% until Dec. 31, 2025, provided that:

  • own properties in category B/1 (boarding and boarding schools, boarding schools, shelters, orphanages, hospices, convents, seminaries and barracks), B/2 (non-profit nursing homes and hospitals) or D/4 (for-profit nursing homes and hospitals);
  • the members of the Board of Directors do not receive compensation or allowances for their office.

For buildings belonging to the Istituti autonomi case popolari (Iacp), or assimilated entities, and indivisa housing cooperatives, the rate will remain at 110% provided that:

  • expenditures are made by June 30, 2023
  • expenditures are made by December 31, 2023 if 60% of the work has been completed by June 30, 2023.

In municipalities located in the craters of the earthquakes that have affected central Italy since 2009, the Superbonus will continue to have the rate at 110 percent until December 31, 2025. In all other cases, it will switch for 2023 directly to a 90% rate, which will drop in subsequent years.

90% tax rate

For single-family buildings and functionally independent housing units, the Superbonus rate will be at 90 percent until December 31, 2023 (then decreasing to 70 percent in 2024 and 65 percent in 2025) provided that:

  • the properties are classified as first home
  • the family “reference income” does not exceed 15,000 euros, a figure that may be higher according to the applicable quotient depending on the number of family members.

Low income contribution

A fund with an endowment of 20 million euros is planned for 2023, which will provide grants to individuals with incomes up to 15,000 euros for the implementation of interventions:

  • in apartment buildings
  • on single-family and functionally independent units used as first homes.

This contribution is intended to offset the reduction in the deductible rate and its operation will be defined by a forthcoming decree of the Ministry of Economy.

Energy income (CIPE Resolution 7/2020)

The National Energy Income Fund was created by a CIPE resolution in 2020 and an initial allocation of €200 million, drawn from the resources of the 2014-2020 Development and Cohesion Fund.

The fund is to provide two types of financing: the first in the form of capital, intended to provide direct incentives for the construction of photovoltaic systems; the second in the form of guarantees for bank financing also aimed at the installation of such systems.

The fund is revolving in the sense that the proceeds from energy (not immediately self-consumed by beneficiaries, in excess of that taken under on-site exchange and remunerated by feed-in), go into the fund itself, to finance the installation of new photovoltaic systems at other disadvantaged households.

Currently, at least three regions have already issued calls for tenders to award photovoltaic systems to be built under the fund. In other regions, the procedures for issuing calls are underway and the number of interested administrations and beneficiaries is expected to increase in the coming weeks.

For participation in the calls, it is necessary to refer to the specific procedures provided by the individual administrations, which are available for the Regions that have already produced them on their respective institutional online sites.

Energy communities and collective self-consumption

Many more opportunities will come with incentives for renewable energy communities (RECs) and collective self-consumption.

The relevant decree has been submitted by Mase, but it awaits the green light from the European Commission, so it is not yet in force at the moment.

At the moment, in this transitional phase, the previous regulation can be used for installations up to 200 kWp and with a shared energy incentive of 100 €/MWh for collective self-consumption and 110 €/MWh for energy communities, for 20 years.

In the residential sector, according to the text sent to Brussels, both individuals and condominiums can participate in these configurations.

In this particular shared energy configuration, the subsidy is on operating account and not on capital account (except for Cer in small municipalities), that is, it concerns the production of renewable energy and not the purchase and installation of the systems.

The Cer decree provides an incentive of 100 euros/MWh for condominium self-consumption for a period of 20 years if the share of shared energy is 70% or more of the energy produced. This intervention is, among other things, cumulative with the 90% superbonus.

In case an energy community is realized, thus involving multiple users of producers and consumers afferent to the same primary cabin, the incentive is configured as follows:

  • for systems under 200 kWp, relative to shared energy, a fixed tariff of €80/MWh, plus a variable tariff with a cap of €120/MWh;
  • for systems between 200 and 600 kWp, a fixed tariff of €70 €/MWh, plus a capped variable tariff of €110 €/MWh;
  • for photovoltaic systems above 600 kW, a fixed tariff of €60/MWh, plus a variable tariff with a cap of €100/MWh.

The rule also reports a premium of €4/MWh for regions in central Italy (Lazio, Marche, Tuscany, Umbria and Abruzzo) and €10 per MWh for those in the north.

The incentives cannot be combined with the 110% Superbonus. Instead, they can be combined with capital grants to the maximum extent of 40%, but if there is a capital grant, the tariff is reduced using this formula:

Rate * (1 – F)

where F is a parameter that varies linearly between 0, in the case of no capital contribution, and 0.40, in the case of 40% contribution.

For example, in the case of a tariff of 100 euros and a 40% contribution, the tariff drops to 60 euros. In fact: 100 * (1-0.40) = 0.60.

Non-repayable grant for Cer in small municipalities

The same decree, as mentioned not yet in effect, provides a 40 percent non-refundable subsidy for Energy Communities in municipalities with less than 5 thousand inhabitants. Contribution that can be combined with the tariff incentive mentioned above.

The grant, provided for in the NRP, is financed with 2.2 billion euros and aims to achieve a total capacity of at least 2 GW and an indicative production of at least 2,500 GWh each year.

Regional calls for Cer

Remaining in the area of energy communities, some regions have already made available ad hoc facilities, which are in addition to the incentives provided at the national level.

Agrisolar

Not really intended for residential, these incentives can, however, be used for rooftop PV for people living on farms.

They apply to systems between 6 kW and 1 MW, benefiting from a non-refundable subsidy of up to 80 percent of the investment, which also applies to asbestos abatement and/or roof insulation work.

The next call for applications has yet to be announced.