Superbonus 110%

How to get the Superbonus 110%

Would you like to do energy requalification works, seismic risk reduction, installation of photovoltaic systems or of columns for recharging electric vehicles?

This is the right moment to do it because the ‘Relaunch Decree’ (Decreto Rilancio) DL n. 34 of 19.5.2020 has increased to 110% the rate of deduction due for these interventions.

In this article you will find a complete presentation of the Superbonus 110% together with a detailed list of the beneficiaries, the properties involved and the interventions that can be deducted, as well as the method of use: direct deduction, invoice discount, credit transfer.

One of the main updates regards the possibility to use the Superbonus not only as a deduction from your own taxes but also through the so-called “invoice discount”. This way,  it can be granted by the supplier, through the transfer of credit to third parties (including banks and insurance companies).

The current incentives for interventions on real estate remain unchanged: recovery of the building stock with tax deduction of 50%, energy requalification – so-called “ecobonus”, with tax deduction of 50% or 65%, depending on the type of intervention (read our article on the topic here), seismic bonus, with tax deduction of 50%, 70% or 80% depending on the type of intervention, and “facade bonus” with tax deduction of 90%.  For these tax deductions, applicable to works carried out after July 1, 2020, you can also opt for the “invoice discount” or “credit transfer” as an alternative to direct tax deduction.

Who are the beneficiaries?

The subjects who can benefit from the Superbonus 110%, according to paragraph 9 of article 119, are:

  • the condominiums;
  • natural persons, both residents and non-residents in Italy, who do not carry out business activities, arts and professions, on the maximum number of 2 real estate units
  • Autonomous Housing Institutes (Istituti autonomi case popolari or IACP);
  • undivided-owned housing cooperatives;
  • the following third sector entities: ONLUS, voluntary organizations (organizzazioni di volontariato or OdV), social promotion associations (associazioni di promozione sociale or APS), associations and amateur sports clubs (associazioni e società sportive dilettantistiche or Asd and Ssd).

With regard to the interventions on the common parts of the condominium, although the rule does not specify it, the deduction should be due to all individual condominiums regardless of whether they are natural persons or not and regardless of the type of individual unit (home, office, store, etc.).

Moreover, if an entire building is owned by a single owner and there are in any case parts common to two or more property units registered separately, this person has the right to the deduction for expenses related to the interventions made on these common parts.

A simplification of the procedures for the approval of condominium resolutions has been introduced, which is valid if approved with several voters representing the majority of those present and at least one third of the value of the building.

Which properties are involved?

The decree states that the intervention must concern:

  • common parts of residential buildings in condominium;
  • single residential real estate units inside buildings in condominium;
  • single-family residential buildings and related appurtenances (regardless of their use as main residence, therefore also second homes);
  • independent residential real estate units with independent access even if inserted in multi-family buildings;

The interventions on real estate units registered in categories A/1, A/8 and A/9 (stately homes, villas and castles or palaces of eminent artistic or historical value) are not eligible for the Superbonus.

In what period can the expenses be incurred and in how many years is the tax deduction distributed?

The expenses must be incurred from 1.7.2020 until 31.12.2021. The tax deduction can be used in 5 equal annual installments.

Which interventions are eligible for the tax deduction?

superbonus 110

 

A. ENERGY REQUALIFICATION INTERVENTIONS

  • thermal insulation of vertical, horizontal and inclined opaque surfaces affecting the building envelope with an incidence of more than 25% of the gross dispersing surface of the building itself or of the real estate unit located inside multi-family buildings;
  • interventions on the common parts of the buildings to replace the existing winter air conditioning systems with centralized systems for heating, cooling or domestic hot water condensation;
  • interventions on single-family buildings or real estate units located inside multi-family buildings that are functionally independent and have one or more independent accesses from the outside for the replacement of existing winter air conditioning systems with centralized systems for heating, cooling or domestic hot water condensation.

In case of replacement of the air conditioning systems, the deduction is also recognized for the expenses related to the disposal and drainage of the system.

The maximum expenditure limit depends on the type of intervention that was carried out.

If a thermal insulation intervention is carried out, the deduction is calculated on a total amount of expenses not exceeding:

  • 50,000 euros for single-family buildings and real estate units located within multi-family buildings;
  • 40,000 euros multiplied by the number of real estate units that make up the building for buildings consisting of 2 to 8 real estate units;
  • 30,000 euros multiplied by the number of real estate units that make up the building for buildings consisting of more than 8 real estate units.

If air conditioning system replacement interventions are carried out on the common parts of the buildings, the maximum expenditure limit is:

  • 20,000 euros multiplied by the number of real estate units that make up the building for buildings composed of up to 8 real estate units;
  • 15,000 euros multiplied by the number of real estate units that make up the building for buildings consisting of more than 8 real estate units.

Finally, if air conditioning systems are replaced on single-family or multi-family buildings, the deduction is calculated on a total amount of expenses not exceeding 30,000 euros.

Other energy requalification interventions

Other energy requalification interventions benefit from the superbonus 110% in the presence of “driving” interventions. This always respecting the spending limits for each intervention and provided that they are carried out in conjunction with at least one of the “driving” interventions listed above.

If you carry out even just one of these interventions (and the use of the conditions of energy improvement of at least two energy classes or the achievement of the highest energy class), all other works that allow you to benefit from the so-called “ecobonus” (which are defined mainly by paragraphs 344 – 349 of article 1 of Law 296/2006) will also be eligible for a tax deduction of 110%.

B. ANTI-SEISMIC INTERVENTIONS

The expenses for which the 110% deduction is due are related to:

  • interventions for the adoption of anti-seismic measures, on buildings located in seismic areas of high danger (Seismic zone 1 and 2) with regard to the execution of works for the static safety, in particular on structural parts. The interventions must be carried out on the structural parts of buildings or complexes of buildings structurally connected and include entire buildings;
  • interventions to reduce the seismic risk that determine the transition to one (currently reduced to 70% on single houses and 75% in condominiums) or two classes (currently reduced to 80% on single houses and 85% in condominiums) of lower risk and in areas at seismic risk 1, 2 and 3 also through demolition and reconstruction of entire buildings, in order to reduce the seismic risk, even with volumetric variation compared to the existing building, where the urban planning regulations in force allow such an increase.
  • the realization of continuous structural monitoring systems for anti-seismic purposes

C. PHOTOVOLTAIC SOLAR SYSTEMS

Expenses for which the deduction is due are those related to:

  • the installation of solar photovoltaic systems connected to the electricity grid on buildings (pursuant to article 1, paragraph 1, letter a), b), c) and d) of Presidential Decree 412/93) and related expenses incurred, if one of the energy requalification or anti-seismic interventions that allow to benefit from the 110% deduction has been carried out jointly.

D. ELECTRIC VEHICLE CHARGING COLUMNS

Expenses for which the deduction is due are those related to:

  • Installation of charging infrastructure for electric vehicles, together with an energy requalification intervention that benefits from the so-called “superbonus”.

What statements are needed in case of the credit transfer or invoice discount?

The possibility to benefit from the “invoice discount” or “credit transfer” is subject to the following fulfilments (art. 121 of Legislative Decree no. 34/20):

The beneficiary of the bonus must request the “Seal of Approval” (Visto di Conformità) certifying the existence of the conditions required by law. The seal of approval is issued by specific authorized people (Certified Public Accountants, Accountants, Labor Consultants, CAF);

For interventions falling within the Sismabonus, the person who issues the seal of approval must also verify the presence of the asseverations and certifications of the professionals in charge.

For interventions falling under the Ecobonus 110%, the asseveration is necessary to certify the:

  • compliance with minimum requirements;
  • appropriateness of expenses incurred in relation to the interventions carried out. A copy of the asseveration is transmitted exclusively by electronic means to ENEA.

The Superbonus and the possibility of opting for the “invoice discount” or the transfer of the credit also for the additional tax incentives provided for other interventions on real estate are certainly an attractive opportunity to upgrade your buildings while obtaining a great support from the Italian State.

It is also necessary to pay a lot of attention because the regulations are very complex.  It is important to rely on companies and professionals experienced in both technical and fiscal fields in order to take this advantage without incurring risks and penalties.

What we can do for you

Thanks to our experience and professionalism, we can provide support and assistance in your decisions. We can help you evaluate all aspects related to the Superbonus 110% and the renovation works required to obtain this tax benefit. Our firm MGI Vannucci & Associati has many years and recognized experience in tax consulting in Italy.