BUILDING BONUSES
BUILDING BONUSES
The draft 2025 Budget Law includes a revision of tax incentives for building renovations. Specifically, the following changes are proposed:
Reduction of rates for main deductions: starting in 2025, the deduction rates for renovation, energy efficiency (Ecobonus), and seismic safety (Sismabonus) interventions will be standardized at 36%-50%. This percentage is expected to further decrease to 30% in the two-year period 2026-2027.
Differentiation by property type: in 2025, the deduction will increase to 50% for work carried out on primary residences, while the new 36% rate will apply to other types of properties.
Stop the Superbonus and restrictions for fossil fuel boilers: starting October 15, 2024, the Superbonus will no longer be available. Furthermore, access to construction incentives will be barred to boilers powered exclusively by fossil fuels, including condensing models, unless they are integrated into hybrid systems that include the use of heat pumps.
Confirmation of some incentives: the Furniture Bonus and the Architectural Barriers Bonus, with their associated spending limits, should also be confirmed for 2025.
BUILDING BONUSES
The draft 2025 Budget Law includes a revision of tax incentives for building renovations. Specifically, the following changes are proposed:
Reduction of rates for main deductions: starting in 2025, the deduction rates for renovation, energy efficiency (Ecobonus), and seismic safety (Sismabonus) interventions will be standardized at 36%-50%. This percentage is expected to further decrease to 30% in the two-year period 2026-2027.
Differentiation by property type: in 2025, the deduction will increase to 50% for work carried out on primary residences, while the new 36% rate will apply to other types of properties.
Stop the Superbonus and restrictions for fossil fuel boilers: starting October 15, 2024, the Superbonus will no longer be available. Furthermore, access to construction incentives will be barred to boilers powered exclusively by fossil fuels, including condensing models, unless they are integrated into hybrid systems that include the use of heat pumps.
Confirmation of some incentives: the Furniture Bonus and the Architectural Barriers Bonus, with their associated spending limits, should also be confirmed for 2025.
The draft 2025 Budget Law includes a revision of tax incentives for building renovations. Specifically, the following changes are proposed:
Reduction of rates for main deductions: starting in 2025, the deduction rates for renovation, energy efficiency (Ecobonus), and seismic safety (Sismabonus) interventions will be standardized at 36%-50%. This percentage is expected to further decrease to 30% in the two-year period 2026-2027.
Differentiation by property type: in 2025, the deduction will increase to 50% for work carried out on primary residences, while the new 36% rate will apply to other types of properties.
Stop the Superbonus and restrictions for fossil fuel boilers: starting October 15, 2024, the Superbonus will no longer be available. Furthermore, access to construction incentives will be barred to boilers powered exclusively by fossil fuels, including condensing models, unless they are integrated into hybrid systems that include the use of heat pumps.
Confirmation of some incentives: the Furniture Bonus and the Architectural Barriers Bonus, with their associated spending limits, should also be confirmed for 2025.
BUILDING BONUSES
BONUS
RENOVATION
EARTHQUAKE BONUS
(natural persons)
36%-50%
MAIN RESIDENCES
50% rate for all types of subsidized interventions
Maximum spending limit of 96,000 euros
SECOND HOMES
36% rate for all types of subsidized interventions
Maximum spending limit of 96,000 euros
Starting in 2025, construction bonuses will be subject to new spending limits due to the introduction of a maximum family cap on tax deductions. This measure, contained in the 2025 Budget Law (paragraph 10 of Law 207/2024) and incorporated into the new Article 16-ter of the TUIR (Consolidated Income Tax Code), requires taxpayers with incomes above €75,000 to pay particular attention to spending limits for various categories, including building renovations, education, and social security contributions.
The new legislation requires that the maximum deductible expenditure be calculated based on two main factors: the taxpayer's overall income and their family situation, specifically the number of dependent children.
The calculation process is divided into two phases:
1. Definition of the reference value based on income:
Taxpayers with income between €75,000 and €100,000: deductible spending limit of €14,000.
Taxpayers with incomes exceeding €100,000: deductible spending limit of €8,000.
2. Application of the family coefficient:
No dependent children: coefficient 0.50.
One dependent child: coefficient 0.70.
Two dependent children: coefficient 0.85.
More than two dependent children or at least one child with a disability: coefficient 1.
The product of these two values (reference value x family coefficient) will determine the maximum deductible expense limit for the taxpayer.
It's important to emphasize that this new regulation introduces a layer of complexity into the management of tax deductions, requiring a careful assessment of one's income and family situation to avoid exceeding the permitted spending limits.
Starting in 2025, construction bonuses will be subject to new spending limits due to the introduction of a maximum family cap on tax deductions. This measure, contained in the 2025 Budget Law (paragraph 10 of Law 207/2024) and incorporated into the new Article 16-ter of the TUIR (Consolidated Income Tax Code), requires taxpayers with incomes above €75,000 to pay particular attention to spending limits for various categories, including building renovations, education, and social security contributions.
The new legislation requires that the maximum deductible expenditure be calculated based on two main factors: the taxpayer's overall income and their family situation, specifically the number of dependent children.
The calculation process is divided into two phases:
1. Definition of the reference value based on income:
Taxpayers with income between €75,000 and €100,000: deductible spending limit of €14,000.
Taxpayers with incomes exceeding €100,000: deductible spending limit of €8,000.
2. Application of the family coefficient:
No dependent children: coefficient 0.50.
One dependent child: coefficient 0.70.
Two dependent children: coefficient 0.85.
More than two dependent children or at least one child with a disability: coefficient 1.
The product of these two values (reference value x family coefficient) will determine the maximum deductible expense limit for the taxpayer.
It's important to emphasize that this new regulation introduces a layer of complexity into the management of tax deductions, requiring a careful assessment of one's income and family situation to avoid exceeding the permitted spending limits.
