Renovation bonus 2024: all the incentives for the home

Whether you live in a flat or a single house, building renovation is an opportunity not only to redefine the spaces you call home but also to actively contribute to environmental sustainability and energy savings. In Italy, the panorama of incentives for building renovation looks like a map that is not always easy to read, but knowing how to interpret it allows you to discover a range of opportunities to save money while improving your quality of life and adding to the value of your property.

Today, there are various forms of incentives and tax deductions covering many of the possible interventions in the can benefit your home. These are the benefits we are going to explore in detail:

• Superbonus

• Bonus Casa, which also includes Sismabonus

• Ecobonus, which also includes the Bonus Caldaia

• Conto Termico

• Bonus for the purchase of a green First Home

• 50% Bonus Mobili

Superbonus: the new rates for 2024

The so-called Superbonus, initially introduced to revitalise the construction sector penalised by the pandemic, is still available as an incentive, although it has been radically revised from the past. The most recent version of this measure (defined in subsection 28 of the Budget Law 2022, then in Art. 9 of Decree-Law No. 176 of 2022, and finally in subsection 894 of the Budget Law 2023), sets out an incentive, to be divided into four equal annual instalments at the rate of:

• 90% for expenditure incurred in 2023

• 70% for expenditure incurred in 2024

• 65% for expenditure incurred in 2025.

However, those interventions that fall under certain specific cases will continue to benefit from the 110% rate.

For natural persons carrying out works on single-family buildings, on the other hand, the 110% deduction also applies to expenses incurred by 30 September 2023, provided that at least 30% of the total work was carried out by 30 September 2022. The framework also sets out that municipalities in areas affected by earthquakes are entitled to a 110% deduction of the expenses related to specific energy efficiency and earthquake protection measures for the amount exceeding the contribution recognised for reconstruction. For earthquake retrofitting works carried out in municipalities affected by earthquakes and occurring after 2008, where a state of emergency has been declared, the limits of expenditure eligible for tax incentives are increased by 50% for reconstruction works (as an alternative to the reconstruction grant).

In all cases, it is still necessary for the redevelopment project to upgrade the building by two energy classes to be eligible for the incentive. On the other hand, interventions carried out on residential property units belonging to the cadastral categories A1 (stately homes), A8 (villas) and A9 (castles and palaces of eminent artistic or historical value) are not eligible for the relief, with the exception of those open to the public (for which the relief is instead allowed following the amendment introduced by Article 80 (6), of Decree no. 104 of 2020, the so-called August Decree).

Then there are two further groups of incentives: those concerning tax deductions for works to improve the energy efficiency of existing buildings (Ecobonus) and tax deductions for building renovations (Bonus casa).

Bonus Casa and Sismabonus

Bonus Casa [Home Bonus] concerns renovation work on the built environment introduced by Art. 16 bis of the TUIR and made permanent by Art. 4 of Decree-Law no. 201/2011 (converted by Law no. 214/2011), which set the deduction rate at 36% and the maximum allowable expenditure at EUR 48,000 per property unit. However, the Budget Law 2022 introduced a temporary ameliorative effect. In fact, for expenses incurred by 31 December 2024, the deduction is increased to 50% up to a ceiling of EUR 96,000 per property. Barring further extensions, from 2025 the parameters will return to the ordinary levels. Invoice discount and assignment of credit are no longer permitted. The deduction is made by stating the expenditure in the tax return; it must be divided among all the persons entitled and divided into 10 annual instalments of the same amount.

Bonus Casa is intended for property (buildings or individual units) for residential use belonging to any cadastral category. For interventions affecting the common parts of residential buildings, deductions are due to each owner in the apartment block on the basis of ownership thousandths. It covers a wide range of interventions, from maintenance (ordinary and extraordinary), to restoration and renovation. It also covers interventions to eliminate architectural barriers, wiring, and noise pollution containment works, asbestos abatement, and prevention of domestic accidents and of unlawful acts by third parties.

A particular type of home bonus is the so-called Sismabonus. Confirmed at least until the end of 2024, it consists of an income tax [IRPEF] deduction obtained when earthquake-protection improvements are undertaken. The permitted deduction percentage depends on several factors, such as the seismic zone of the building, the building’s intended use, and the type of intervention carried out. The deduction percentage can therefore vary from 50% to up to 85%.

Ecobonus and Bonus Caldaia

The Ecobonus is a benefit regulated by Article 14 of Decree-Law no. 63/2013, which consists of an Irpef (individual income tax) or Ires (for companies) tax deduction, concerning building interventions for the energy efficiency of existing buildings. It has been extended several times and currently covers expenses incurred until 31 December 2024. The catalogue of interventions eligible for relief is very broad, and deductions can vary from 50% to 85%, while in some cases there is a ceiling on expenditure. Credit assignment and invoice discounting are no longer permitted for work commenced after 16 February 2023. Like for the Bonus Casa, the deduction is made by stating the expenditure in your tax return; it must be divided among all the persons entitled and divided into 10 annual instalments of the same amount. This package of incentives includes, for example, the so-called Bonus Caldaia [Boiler Bonus], which grants deductions for replacement of an old fossil fuel boiler with a new-generation model. In particular, the deduction rate is 50% when a class A or higher condensing boiler is installed (expenditure limit EUR 30,000), while it rises to 65% when advanced thermoregulation and home automation systems are also installed.

To access the Bonus Casa and Ecobonus, it is necessary to meet certain technical requirements and to notify Enea via the dedicated web platform no more than 90 days from the date of completion of the works. Bonus Casa and Ecobonus sometimes apply to the same areas of intervention but cannot be combined with each other. It is therefore necessary to choose, on a case-by-case basis, which of these incentives is best suited to your needs.

Conto Termico, Bonus Casa Green and Bonus Mobili

In addition to these bonuses, there is the so-called Conto Termico [Heating Bonus]. Unlike the Ecobonus, this is not a bonus in the form of a tax deduction but a refund provided by the GSE (Gestore Servizi Energetici) to which applications must be submitted. The Conto Termico provides bonuses of 40 to 65% of the costs incurred when replacing an old heating system with a new generation biomass, condensation or heat pump system. The beneficiaries of this measure are not only private individuals but also companies, and public administration.

In addition to bonuses for renovating and adapting buildings, a bonus is also available for the purchase of a green first home, i.e. one with certain thermal and energy efficiency characteristics. The bonus, provided for in subsection 76 of L. 197/2022 and valid, unless extended, until 31/12/2023, provides for a 50% deduction of VAT on the purchase of a house in energy class A or B. All persons who are paying IRPEF, i.e. individual taxpayers, when the purchase of the property is made directly from the builder or real estate collective investment undertaking (UCI), can benefit.

Finally, another form of incentive is the Bonus Mobili. This measure, certainly in force until the end of 2024, entails an income tax (IRPEF) deduction of 50% of the expenses incurred for the purchase of furniture and large household appliances intended to furnish a property that is the subject of building heritage restoration work. The expenditure ceiling has been set at EUR 8,000 for 2023 and another constraint relates to the energy efficiency of the household appliances. To qualify for the Bonus Mobili, ovens must be at least class A, washing machines, dishwashers and washer-dryers class E, and refrigerators and freezers class F. Payments for the purchase of furniture and appliances must be made by bank transfer or credit or debit cards.