110% Superbonus

The Superbonus is an incentive provided by the Relaunch Decree, which increases the tax deduction rate to 110% for expenses incurred from July 1, 2020, to December 31, 2021, for specific interventions related to energy efficiency, seismic interventions, installation of photovoltaic systems, or infrastructure for electric vehicle charging in buildings.

These new measures complement existing deductions for building renovation, including those for seismic risk reduction (Sismabonus) and energy redevelopment of buildings (Ecobonus).

Among the introduced changes is the possibility, instead of directly benefiting from the deduction, to opt for an upfront contribution in the form of a discount from the suppliers of goods or services, or alternatively, for the transfer of the corresponding tax credit. In this case, a communication to exercise this option must be sent starting from October 15, 2020, using the model approved by the August 8, 2020, decree.

Who Is Eligible

The Superbonus applies to interventions carried out by:

• Condominiums
• Individuals, outside the scope of business, crafts, and professions, who own or possess the property subject to the intervention
• Autonomous public housing institutes (IACP) or other institutes that meet European Union legislation requirements for "in-house providing"
• Housing cooperatives with undivided ownership
• Non-profit organizations (Onlus) and volunteer associations
• Sports clubs and amateur sports companies, limited to works related to premises or parts of premises used as changing rooms.

IRES (corporate income tax) subjects are eligible only when participating in expenses for leading interventions on common parts in condominium buildings.

Eligible Interventions

Primary or Leading Interventions

The Superbonus applies to:

• Thermal insulation of building envelopes
• Replacement of winter heating systems in common areas
• Replacement of winter heating systems in single-family buildings or functionally independent units in multi-family buildings
• Seismic interventions: The deduction already provided by Sismabonus is increased to 110% for expenses incurred from July 1, 2020, to December 31, 2021.

Additional Interventions

In addition to the primary interventions listed above, the Superbonus also covers expenses for interventions carried out in conjunction with at least one of the primary interventions, including:

• Energy efficiency improvements
• Installation of photovoltaic solar systems
• Infrastructure for electric vehicle charging.

Benefits

The deduction is granted at a rate of 110%, to be divided equally among eligible recipients in five annual installments, within the limits of the annual tax due as per the income tax return.

In addition to directly benefiting from the deduction, you can opt for an upfront contribution in the form of a discount from suppliers of goods or services (invoice discount) or for the transfer of the corresponding tax credit.

The credit transfer can be made to:

• Suppliers of goods and services required for the interventions
• Other entities (individuals, even self-employed or business entities)
• Credit institutions and financial intermediaries.

Entities receiving the credit also have the option to transfer it.

This option also applies to interventions related to:

• Building renovation (letters a, b, and h) of Article 16-bis of the TUIR (income tax law)
• Recovery or restoration of building facades of existing buildings (the so-called facades bonus, Article 1, paragraphs 219 and 220, of Law No. 160 of December 27, 2019)
• Installation of charging stations for electric vehicles (Article 16-ter of Decree-Law No. 63 of 2013).

To exercise this option, in addition to the usual requirements for obtaining deductions, the taxpayer must also obtain:

• Conformity verification of data related to documentation, issued by intermediaries authorized for the electronic transmission of tax returns (chartered accountants, accountants, business consultants, and labor consultants) and by CAF (tax assistance centers)
• Technical certification for energy efficiency and seismic risk reduction interventions, certifying compliance with the necessary technical requirements for tax incentives and the appropriateness of expenses related to eligible interventions.

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