Choosing to install a stove to heat your home is considered a green and environmentally friendly choice, as it allows you to replace or integrate polluting appliances with clean, less impactful energy systems. For this very reason, installing a stove is encouraged by the government through a series of tax measures.
Before explaining the various tax incentives, it’s worth taking a moment to consider which types of stoves are eligible for these discounts and their characteristics.
Should you install a pellet or wood stove?
Installing a stove, whether pellet or wood-burning, certainly has a positive impact on the family budget. In fact, installing one allows for savings of up to 50% compared to traditional methods. But choosing which type of stove to choose isn’t always easy. Pellet stoves and wood-burning stoves are not the same; there are many factors to consider: energy efficiency, purchase costs, energy consumption, and environmental impact.
Pellet Stoves: Features, Advantages, and Disadvantages
Use of pellets, a material composed of sawdust and cylindrical waste, natural and eco-friendly, with high thermal efficiency and a higher calorific value than wood;
Minimal production of ash and waste;
Pellet bags are affordable and readily available, about half the cost of other fossil fuels;
Allows you to program and regulate the device’s ignition using an electrical circuit board, even remotely;
Even ideal for small spaces;
The purchase cost of the appliance, if also equipped with remote ignition, is higher than other solutions. But this is well-balanced with the optimization of energy consumption.
A disadvantage is certainly the fact that it does not recreate the same warm and welcoming atmosphere as a wood-burning stove.
Wood-burning stoves: features, advantages, and disadvantages
A wood-burning stove offers a pleasant aroma, a pleasant appearance, and a unique atmosphere that cannot be replicated by other appliances.
It uses wood logs, which are easy to find, especially for those living in the countryside or near a forest.
It is highly ecological and green: the CO2 released into the air is the same as that produced by rotting wood in nature.
The fire produced by wood does not dry out the air in the room, thus maintaining a constant humidity level.
It produces no noise, other than the crackling of the fire.
It is suitable for large spaces, but not suitable for small spaces.
Remote control is obviously not possible, nor can the intensity or temperature of the room be adjusted.
In conclusion, the choice between the two types of stoves must be analyzed based on the points mentioned above: in terms of energy efficiency, pellets are certainly superior, but in terms of cost, a wood-burning stove is more cost-effective. Pellets are cleaner and more compact, but a wood-burning stove creates unique atmospheres. The choice is therefore subjective, always keeping in mind the pros and cons of each.
Stove Bonus: Tax Deductions
Once you’ve chosen the type of stove that best suits your needs, it’s a good idea to consider the available tax benefits.
Tax deductions, which have been extended several times over time, for both pellet and wood-burning stoves, consist of different types of deductions: 50% or 65% personal income tax (IRPEF) or a direct contribution for replacement, known as a “conto termico” (thermal account). Furthermore, the stove bonus is included in the Superbonus 110% incentive.
Stove Bonus: 50% tax deduction for renovations
The 50% tax deduction is equivalent to the well-known “Home Bonus” or “Renovation Bonus” and applies to the purchase of new stoves, both pellet and wood-burning, with a minimum efficiency of no less than 70% for the entire home. This type of tax deduction is available if the stove’s manufacturer’s energy performance declaration is included with the purchase invoice. In this case, the tax deduction is calculated on a maximum amount of €96,000, specifying that the heating system work must be carried out concurrently with the work on the property.
Stove Bonus: 50% or 65% tax deduction for energy requalification
The second type of deduction, the aforementioned “Ecobonus,” is available at two different rates depending on the type of project. The 50% deduction applies to energy efficiency upgrades related to a single system. The 65% deduction applies to overall energy efficiency upgrades for the building, i.e., for work performed on both the building envelope and the systems. This latter discount can be applied to expenses up to €30,000. The incentive consists of an IRPEF deduction, divided into ten equal annual installments for expenses incurred in 2021.
To qualify for both types of incentives, the pellet or wood stove must provide an efficiency equal to or greater than 85% of its total energy needs and, in addition, must have a four-star environmental certification for the replacement of an existing biomass generator or a five-star certification for a new installation.
Stove bonus: contribution to the heating bill
This type of deduction is available when the stove replaces an old and obsolete heating system. The “Conto termico” (Thermal Account) grant is a cash contribution of up to €2,300, paid in a single payment and must be requested online from the GSE website within 60 days of installing the appliance, attaching the disposal certificate for the old system.
Stove Bonus: Superbonus 110
The Superbonus 110 tax incentive also covers the purchase of pellet or wood-burning stoves. The expense related to the installation of a stove must be related to renovation work on a single property or condominium. As provided for by the major incentive, the tax deduction can be used with a discount on the invoice or the transfer of the credit, as established by the 2022 Budget Law.
Stove Bonus: 2022 Budget Law Extension
Still being discussed by the Government, the draft 2022 Budget Law provides for an extension for this benefit, which currently expires on December 31, 2021.
Stove Bonus: Visas and Certifications
With the entry into force on November 12, 2021, of Law No. 157 of 2021, which contains measures aimed at combating tax relief fraud, obtaining the stove bonus has become more complicated. As previously mentioned, the bonus in question can be included in the renovation tax breaks and the Ecobonus. In the latter case, obtaining the tax relief is a complex and challenging process, as specific technical requirements must be met and a notification must be submitted to ENEA. The same applies to credit transfer or invoice discounts. Although the 2022 Budget Law established, but has not yet confirmed, that expenses incurred for the years 2020, 2021, and thereafter can be deducted, notification must be made to the Revenue Agency by March 16 of the following year, and the requirement to obtain a certificate of conformity and a certification of price congruity has been introduced.
The Revenue Agency has, however, clarified that for purchases made before November 12, 2021, and already paid, neither the certificate nor the certification will be required. However, if the invoice is prior to the aforementioned date but unpaid, both declarations will be required.
Documents required to obtain the Stove Bonus
To obtain this bonus, certain requirements must be met:
Certificate of conformity issued by the installation technician;
A bank transfer, if payment is made using this method, must include the personal details of the seller and buyer and the correct reference to the legislation;
Submission of the details of the work to ENEA within 90 days;
The 50 or 65% discount must be divided into 10 annual installments to be included in tax returns, indicating the land registry data;
All stove documentation must be shared with the tax advisor and submitted to the Revenue Agency for inspection.
After this general overview of stove types, possible tax incentives, and the procedures and documents to consider, it’s a good idea to seek help from experts and designers in the sector to gain a better overview and choose the most suitable type for your home.