The resources for the extension of the 110% Superbonus until the end of 2023 have been released. The green light came thanks to the European Union Council’s approval of the Italian PNRR and the subsequent publication in the Official Journal of the Decree of the Ministry of Economy and Finance of 6 August 2021 on the “Allocation of the financial resources provided for the implementation of the interventions of the National Recovery and Resilience Plan (PNRR) and the allocation of targets and objectives for six-monthly reporting deadlines”.
The energy saving measures, with the resulting IRPEF/IRES tax deduction in ten annual, constant instalments, have been extended to 2021 according to the previously applicable guidelines. This benefit can be applied not only by private individuals and partnerships, but also by corporations and other entities subject to IRES. The benefit consists in the deduction of 65%/50% of the costs of energy saving measures on buildings, subject to certain maximum amounts.
The super bonus of 110%, with the consequent IRPEF deduction in five annual equal instalments, has been postponed until 30.06.2022 (in relation to the expenses paid in 2022, these can be offset in four annual equal instalments).
The structural rehabilitation measures with the IRPEF deduction in ten annual constant instalments have been extended as follows according to the previously applicable guidelines: From 26.06.2012 to 31.12.2021 = Euro 96,000.00 = 50% (thus a maximum of Euro 48,000.00).
The purchase of furniture and electrical appliances and the related tax deduction IRPEF in ten equal annual instalments is applicable according to the previously applicable regulations: Until 31.12.2021 = Euro 16,000.00 (this limit is independent of the limit of expenses for renovation/reclamation works on residential buildings for the purpose of IRPEF deduction). Until 31.12.2021 = 50% (maximum amount of Euro 8,000.00).
The tax revaluation of participations and land: Land and non-listed participations owned by private individuals (outside of a business activity), simple partnerships and non-commercial corporations as at 01.01.2021 can be revalued for tax purposes. The revaluation must take place within 30.06.2021, whereby a valuation report must be drawn up and sworn within this date, and a substitute tax of 11% (unchanged from 2020) must be paid.
The amendments to the provisions on short-term rentals: The Budget Law amends Article 4 of Legislative Decree 50/2017 with regard to short-term rentals (considered as such the rental of residential real estate for a period not exceeding 30 days, carried out between private individuals outside a commercial activity and for tourism purposes) and introduces a legal presumption according to which, as of the taxable period 2021, the substitute tax on rental income can be applied to short-term rentals only if “no more than 4 dwellings are used for short-term rentals in a taxable period”. If 5 or more dwellings are used for these purposes, there is a legal presumption of commercial or entrepreneurial activity.
The contribution for the reduction of rents related to residential properties: In 2021, a contribution will be granted to landlords of dwellings in municipalities with a high residential density, provided that their dwelling constitutes the main residence for the tenant and the rent is reduced.
amounts to 50% of the discount granted (the percentage could, however, be reduced if the corresponding telematic applications exceed the allocated funds, where it has been seen in the past with similar contributions that the amount actually due can ultimately also be substantially higher than the possible maximum amount);
up to a maximum amount of Euro 1,200.00 per landlord.
The landlord must telematically transmit to the Revenue Agency proof of the contractual reduction in rent that has taken place, as well as other necessary information.
Pursuant to Art. 66, para. 6 of the By-laws of the Civil Code, the following shall apply: Even if not expressly provided for by the condominium statute, the general meeting of the condominium may be convened by means of videoconference if the majority of the co-owners are in favor of it.
Law No. 77 of 17 July 2020 converted into law Decree-Law No. 34 of 19 May 2020 (the so-called Decree Rilancio), with some amendments that also affect the tax credit or the 110% building super bonus.
We point out that this is a complex benefit that generally requires the cooperation of several people/experts/professionals, namely:
the planner/technician (architect, engineer, surveyor, etc.) who plans the intervention;
the company carrying out the intervention (whose internal technician coordinates with
with the external technicians);
the qualified technicians (always engineers, architects, etc.) who issue the technical
(i.e. compliance with the required conditions and the reasonableness of the costs in relation to the beneficiary interventions);
of the energy expert who sends the notifications to the ENEA and/or issues the energy certificate;
of the accounting expert who issues the certificate of compliance (in case of assignment of the tax credit or an invoice account).
A preparatory study/coordination phase between these experts is crucial for the professional implementation of the intervention and for the assessment of feasibility and economic viability. In the case of condominiums, the owners’ meeting must be convened, the various technical/tax/financial aspects of the intervention on the common shares of the building must be explained and their approval requested (by means of a special decree to be published, it will probably be established that a simple majority is sufficient if at least one third of the thousandths of the building are represented); this resolution should already contain the intervention to be carried out, the corresponding tax credit to be applied, the method of application of the tax benefit (offset/assignment/invoice account), and the financial aspects of the intervention. In addition, the owners’ meeting must appoint the team of professionals who will accompany the intervention, as well as the company that will carry it out. In this context, special agencies will operate to assist the condominiums in all aspects of the 110% tax credit. Due to the complexity of the intervention or the corresponding requirements, it seems desirable to specialise some companies so that the owner planning such an intervention can be offered the whole thing with a “turnkey” procedure.
The following can benefit from the tax credit
natural persons outside their business/professional activity (for
maximum of two properties, without prejudice to the use of a deduction for encroachments on
common areas of the condominium);
Volkswohnbau (IACP) and entities with the same purpose of the aforementioned
Housing cooperatives with undivided ownership;
ONLUS non-profit organizations, voluntary associations and associations for the promotion of
of the community;
Amateur sports clubs and associations, restricted to work on the
Changing rooms used as buildings.
The 110% tax deduction is due to all-natural persons who own or dispose of a building (i.e. owners, bare owners, usufructuaries’, tenants and their family members). The IRES subjects and, in general, the holders of business or professional income, can only claim the bonus for the participation in the expenses of “managerial” interventions carried out on the common parts of the building and/or in the case of commercial units in condominiums.
The scope: the bonus is recognized at the level of 110% of the costs, divided among the beneficiaries in five annual instalments of equal amount. It is due for the proven expenses remaining at the taxpayer’s expense for interventions carried out on the common areas of condominiums, single-family houses and individual units in two-family houses (up to a maximum of two units, on condition that the property belongs to two different subjects). Please note that interventions on properties in cadastral categories A1, A/8 and A/9 are excluded from the 110% bonus.
The period of the beneficiary costs: the 110% beneficiary applies exclusively to the expenses borne in the period from 01.07.2020 to 31.12.2022. Therefore, since the first of July 2020, the correspondingly marked bank transfers can be made for interventions on buildings that give rise to a deduction of 110% of the expenses borne.
Theperiod of apportionment of the amount of the tax credit: the 110% tax deduction will be apportioned over five years in the case of the 110% deduction/earthquake bonus, otherwise over 10 years (for “related” interventions falling under building renovations or interventions for the purpose of energy savings, unless otherwise interpreted by the Revenue Agency in this regard). In any case, it is not permissible to request the refund of the tax credit due and/or its carry forward, so there should be sufficient taxes on which the tax deduction can be made!
For this reason, the subjects who wish to claim the bonus must carefully check their possibility for the deduction, otherwise they should either make the invoice account or an assignment of the credit. In fact, instead of using the deduction directly, taxpayers can choose between an invoice account on the part of the suppliers of the goods or services or else the assignment of the claim corresponding to the credit. The option concerns the costs borne from 2020 to 2022 for interventions to which the increased tax deduction of 110% applies, but also for structural interventions, interventions for the purpose of energy renovation of the façade of existing buildings and interventions for the purpose of installing photovoltaic systems and charging stations for electric vehicles.
Please note that the company carrying out the intervention (supplier/handicraftsman) is not obliged to the invoice account, but is free to accept it or not or also to negotiate its scope. The invoice account is essentially the technical process by which the company carrying out the work takes over the client’s tax benefit (technically, the deduction becomes a tax credit for the company) and allows the client to carry out the intervention on the building even in the absence of the necessary financial means. It is therefore imperative to discuss with the company, before transferring the contract, whether the latter will carry out the invoice account and is willing to accept this way of applying the 110% bonus.
Anyone who intends to convert the bonus into an invoice account and/or to assign it must do so by entering the necessary data/documents on the online platform provided by the Revenue Agency. Further information on this can be found on the Internet at the following link: https://www.agenziaentrate.gov.it/portale/web/guest/schede/agevolazioni/detrristredil36/pia ttaforma-cessione-crediti-detrristredil36-imprese The “leading” interventions and their effects: please note that for the purpose of benefiting 110%, the following “leading” interventions have been introduced: The replacement of existing heating systems in detached houses or concerning the common parts of buildings, as well as the thermal insulation with insulation material that meets the minimum environmental criteria. Only if, together with one of these three “leading” interventions, expenditure is made on other interventions already benefiting to the extent of 50-65-70-75-80-85% for the purpose of energy saving or the installation of charging stations for electric vehicles, are all these interventions entitled to the deduction of 110% from the IRPEF (or IRES). In this way, the replacement of doors and windows can also be included in the 110% bonus thanks to a simultaneous “leading” intervention, if they are community shares!
For the interventions for the purpose of seismic safety, considered special and currently 50-65-70-75-80-85% beneficiary according to art. 16 Legislative Decree 63/2013, the deduction amount will be increased to 110% without the need to carry out any of the three “leading” interventions. Last but not least, the 110% deduction is also due for the installation of photovoltaic systems and storage systems, on condition that they are carried out at the same time as one of the following interventions that are entitled to the 110% deduction: the three “conductive” interventions or the one for the earthquake bonus (which in this case becomes “conductive” for the photovoltaic system and storage system).
If the building on which the intervention is carried out needs to be improved by at least two energy classes: The 110% deduction foreseen for the superbonus interventions (including the three new “leading” interventions) is subject to the condition that the building in question must be improved by at least two energy classes or, if this is not possible, must reach the highest energy class, as evidenced by APE energy performance certificates issued both before and after the intervention, by a qualified technician through sworn declaration. For this reason, there is a need to contact an expert qualified to issue the energy performance certificate and send the corresponding documentation to ENEA from the very beginning. This is also one of the reasons why it will be anything but easy to obtain the deduction of 110% only on individual housing units within condominiums.
The payment of bills: in order to pay for the interventions, the presentation of the bill must always be requested. This can be done by means of a bank or postal transfer (with the same indications as those already required for transfers for renovations with a 50% deduction, which the banks call “Modality Law 449” or “Modality Art. 16-bis TUIR”). The invoice must then be kept together with the specific remittance slip.
In general, it should be added that this 110% tax deduction certainly offers a good opportunity for owners of detached houses and/or co-owners of condominiums; however, the procedure is complex and for this very reason requires adequate technical/tax/financial/organizational planning, as well as a prior calculation of the advantageousness that takes into account all the necessary expenses of the obligations to be fulfilled.