In recent months, there has been much discussion about the 110% Superbonus, the Earthquake Bonus, and the Ecobonus—economic recovery measures containing significant tax breaks introduced following the general shutdown caused by the COVID-19 emergency. But let’s try to summarize the key concepts and organize our thoughts.
LAW OF JULY 17, 2020 – Conversion into law, with amendments, of Decree-Law No. 19 of May 19, 2020. 34, containing urgent measures regarding health, employment and economic support, as well as social policies related to the COVID-19 health emergency, is what we know better as the Relaunch Decree. Its objective is to revitalize the construction sector by improving the energy and seismic performance of existing buildings, while also boosting families’ spending power by allowing them, through the tax deduction system*, to cover the significant costs of renovations that would otherwise be unaffordable during this period.
*Tax deduction | This allows, by completing forms such as 770 and 730, the amount recognized by the relevant regulations to be deducted from the gross tax due to the State.
110% Superbonus
When we refer generically to the 110% Superbonus, we are referring to the two aforementioned Sismabonus and Ecobonus.
How does the Superbonus benefit the interested party?
By increasing the tax deduction rates for earthquake-proofing (110% Earthquake Bonus) and energy efficiency upgrades (110% Ecobonus) to 110%.
What is the validity period for these options?
Earthquake-proofing and energy efficiency upgrades are eligible for a 110% deduction on the total expenses incurred, provided they are incurred between July 1, 2020, and December 31, 2021.
Superbonus and Earthquake Bonus Application
The 110% Earthquake Bonus and 110% Ecobonus are valid for first and second homes, whether single-family homes, townhouses, or condominium units.
The same interested party can obtain a bonus for a maximum of two residential units.
Bonus Exemption
Castles, stately homes, and villas are not eligible for the Superbonus.
Is the Superbonus cumulative?
No, the 110% Earthquake Bonus and 110% Ecobonus cannot be combined with other incentives for the same project, if completed now.
However, deductions already obtained for projects completed in previous years remain unchanged.
Who is eligible for the Superbonus?
People outside of businesses, arts, or professions;
Condominiums;
IACP (Autonomous Public Housing Institutes);
Renewable Energy Communities in the form of non-commercial entities;
Housing cooperatives;
ASD (Amateur Sports Associations);
Non-profit organizations, such as volunteer or social promotion associations in the third sector.
Who is entitled to the deduction?
The owner or holder of the property;
To the family members of the owner or holder of the property;
To the bare owner;
To the holder of other real rights of enjoyment;
To the holder of the property under a lease or loan agreement.
What are the eligible interventions?
It is necessary to divide them into two categories: we can talk about driving interventions, the main ones, and driven interventions, the secondary ones. The former are eligible for the Superbonus, the latter enjoy the same tax deduction as they relate to works necessary for the construction of the former.
Driving interventions
Thermal insulation. Thermal insulation of opaque horizontal, vertical, and inclined surfaces.
The tax deduction is calculated on a maximum of:
€50,000 for single-family homes and terraced houses
€40,000, multiplied by the number of units in the building (2 to 8 units)
€30,000, multiplied by the number of units in the building (more than 8 units).
The building must improve overall by at least two energy classes;
Replacement of boilers and winter air conditioning systems in condominiums with condensing heating, cooling, and hot water systems with efficiency class A, heat pumps, hybrid and geothermal systems, photovoltaic systems, storage systems, and solar collectors. The building must improve overall by at least two energy classes.
The tax deduction is calculated on a maximum of:
€20,000, multiplied by the number of units in the building (from 2 to 8 units);
€15,000, multiplied by the number of units in the building (more than 8 units);
Replacement of boilers and winter air conditioning systems in detached houses and terraced houses with heating, cooling, and hot water systems.