Taxpayers who renovate residential buildings and common areas of residential buildings located in the territory of the State can deduct from their personal income tax (Irpef) a portion of the expenses incurred for the work.
The deductions for building renovations are indeed valid also for 2019, thanks to the bonus that allows requesting the 50% Irpef refund on expenses incurred for specific works.
With the 2019 Budget Law, the Renovation Bonus has been extended until December 31, and among the main novelties, it is worth mentioning the ENEA communication obligation.
Our wastewater treatment plants fall within the deductible costs for the renovation and/or extraordinary maintenance category!
How does the Renovation Bonus work?
Taxpayers can deduct 50% of the expenses incurred for ordinary and extraordinary maintenance work from their Irpef, for a maximum amount of €96,000.
The recognized Irpef refund will be paid in 10 equal annual installments, and to benefit from the facilitation, it is necessary to comply with specific rules.
The 50% deduction is recognized for:
- works for ordinary maintenance, extraordinary maintenance, restoration, conservative restoration, and building renovation carried out on common areas of condominiums;
- interventions for extraordinary maintenance, restoration and conservative restoration, building renovation carried out on individual residential units;
- works for achieving energy savings;
- reconstruction or restoration of the property damaged due to catastrophic events;
- construction of garages/parking spaces;
- elimination of architectural barriers;
- asbestos remediation and execution of works aimed at preventing domestic accidents;
- adoption of measures aimed at preventing the risk of illicit acts by third parties.
Some examples of ordinary maintenance works for which the bonus is recognized:
- installation of elevators and safety stairs;
- construction and improvement of sanitary facilities;
- replacement of external fixtures and frames or shutters with blinds and with modification of material or type of fixture;
- refurbishment of stairs or ramps.
Let’s take a practical example: on €4,000 spent, the taxpayer will have a SAVINGS of 50%, that is €2,000, deducted from income taxes in installments of €200 per year for 10 years.
Who is entitled to the Renovation Bonus?
To all taxpayers subject to income tax, whether residents or non-residents in Italy:
- owner or bare owner;
- holder of a real right of enjoyment (usufruct, use, residence, or surface);
- tenants or borrowers;
- members of cooperatives, partners of simple partnerships, and sole proprietors (for non-instrumental or merchandise properties);
- if holders of bank transfers and invoices: cohabiting family member, separated spouse assigned the property, cohabitant more uxorio.
How to apply and how to pay?
To apply for the 2019 Renovation Bonus, the incurred expense and the identifying cadastral data of the property must be indicated in the income tax return.
The bonus has specific rules regarding the payment of works, for which it is necessary to use a bank or postal transfer.
ENEA Communication
Among the novelties of the 2019 Renovation Bonus, we find the ENEA communication obligation of the works carried out within 90 days from the end of the interventions or testing.
For all instructions, you can consult the guide provided by ENEA: http://www.acs.enea.it/ristrutturazioni-edilizie/
For more information on deductible expenses, wastewater treatment plants, and energy savings, the Dorabaltea consultants are ready to provide all the information you may need and to study the best solution for your needs.
Request a consultation: info@dorabaltea.com
To learn more:
If you want to know the steps to follow to request the facilitation, read the information sheet:
If you want to delve into the details and stay updated on the latest regulatory news, read the tax guide:
