Reduction in deduction for building renovation and energy requalification work
The 2025 Budget Law introduces several changes to the rules governing almost all the tax benefits provided for building renovation, energy efficiency, earthquake-proof interventions, as well as for the purchase of furniture and large household appliances intended to furnish a property subject to building heritage renovation interventions. The rules reshape the terms of use and the deduction rates, providing for more advantageous situations for real estate units used as principal residence.
By amending Article 16-bis, paragraph 1, of the Consolidated Income Tax Act, paragraph 54 of the provision establishes that for the documented expenses relating to the interventions indicated in paragraph 1 of the aforementioned article, a deduction in ten annual instalments from the gross tax is due, equal to 36% of the expenses incurred in year 2025 and 30% of the expenses incurred in the years 2026 and 2027, up to a total amount of the same not exceeding €96,000 per real estate unit.
In the case of interventions borne by the holders of ownership rights or rights in rem of enjoyment over the real estate unit used as the principal dwelling, an increase of the above rates is provided for up to 50% of the expenses for year 2025 and 36% of the expenses for years 2026 and 2027.
With an amendment introduced in the Chamber of Deputies, interventions for the replacement of winter air-conditioning systems with boilers solely fuelled by fossil fuels are excluded from all deductions for the years 2025, 2026 and 2027.
On the other hand, letter b), number 3), confirms what is set forth in paragraph 2, Article 16, which grants taxpayers who have started building heritage restoration works an additional deduction from the gross tax for the purchase of furniture and large household appliances of no less than class A aimed at furnishing the property being restored. The 50% deduction is confirmed for these expenses and is calculated on a total amount not exceeding €5,000.
Extension of deductions for energy efficiency (Ecobonus) and seismic risk reduction (Sismabonus)
Paragraph 55 amends Decree-Law No. 63 of 4 June 2013 on tax benefits, both for certain energy-saving measures (ecobonus) and for building upgrading and earthquake-resistant measures (sismabonus).
The new wording regarding energy efficiency measures (ecobonus) provides, like building renovation measures, for a lowering of the deduction from gross tax from 65% to 50% for expenses incurred during year 2025 and to 36% for expenses in the two-year period 2026/2027 if the same expenses are incurred by the holders of ownership rights or rights in rem to enjoyment over the real estate unit used as the main home. For real estate available or rented out (other than the main home), the deduction also increases to 36% for the year 2025 and to 30% for 2026 and 2027.
As regards interventions for the adoption of anti-seismic measures (sismabonus), letter b), number 2), inserts a new paragraph 1-septies.1 in a similar way to what has been seen for building renovations. Also in this case, the deduction increases from 50% (varying from 70% to 85% depending on the intervention with a reduction in seismic risk of 1 or 2 classes and when the works are carried out on the common parts of condominium buildings) to 36% for 2025 expenses and to 30% for 2026 and 2027 expenses, without prejudice to the above-mentioned increases for interventions on main homes.
Superbonus
Paragraph 56 (a) introduces a new paragraph 8-bis.2. to Article 119 of Decree-Law No. 34 of 19 May 2020 on superbonuses.
For expenses incurred in the year 2025, the new regulation confirms the 65% deduction limited to condominiums, but only for interventions for which, as of 15 October 2024, the following requirements are met:
- the communication of commencement of works (CILA) has been submitted;
- the assembly resolution approving the execution of works has been adopted and the communication of commencement of works (CILA) has been submitted, if the works are carried out by the owners;
- an application for the acquisition of the housing permit has been submitted, if the works involve the demolition and reconstruction of buildings.
In addition, it is recognised that the deduction due for expenses incurred from 1 January 2023 to 31 December 2023 can be divided into ten equal annual instalments.
Architectural Barriers Bonus
The 2025 Budget Law essentially has made no changes to the bonus for the removal of architectural barriers and has confirmed its 75% deduction in 10 annual instalments and its extension to 31/12/2025.
The provisions of Decree Law 212/2023, which had at the time excluded from the scope of the Architectural Barrier Bonus the expenses for works to eliminate architectural barriers concerning fixtures, floors, toilets, as well as works to automate the systems, remain confirmed.
Limits for claiming income tax deductions
A further amendment to the rules on deductions concerns the provisions of the new Article 16-ter, paragraph 1, which provides that, without prejudice to the specific limits provided for by each rule in terms of allowances, for persons with a total income exceeding €75,000, the charges and expenses for which a deduction from the gross tax is provided, taken together, are allowed as deductions up to an amount calculated by multiplying the basic amount determined in correspondence with the taxpayer’s total income by a coefficient that varies according to the number of children considered dependent.
With the new family threshold, the calculation of the total maximum amount that can be deducted is envisaged as follows:
- those with an income between €75,000 and €100,000 can deduct up to a maximum of €14,000
- those with an income over €100,000 may deduct up to €8,000.
The family coefficient is applied to this, as described below:
- 0.50 if there are no tax dependent children in the taxpayer’s household;
- 0.70 if there is one;
- 0.85 if there are two;
- 1 if there are more than two or if there is at least one with a disability.
