Prepared by Franco Boga, Marco Napolitano, Guido Guidi, Andrea Bordin
The Law n. 77 of 17 July 2020 converting the Law Decree n. 34 of 19 May 2020 (the so-called “Relaunch Decree”) has provided a new wording of article 119 and subsequents. Considering the changes made to the original provision and the release of the Guide “Superbonus 100%” of the Italian tax authorities dated July 24th 2020 (available at the following link: https://www.agenziaentrate.gov.it/portale/documents/20143/233439/Guida Superbonus 110.pdf/49b34dd3-429e-6891-4af4-c0f0b9f2be69), this Newsalert gives an updated overview of the superbonus at 110% for energy efficiency and anti-seismic interventions. It should be noted that this contribution replaces the document published on 8 June 2020 available at the following link: https://blog.pwc-tls.it/en/2020/06/08/rilancio-decree-new-superbonus-of-110-the-news-at-a-glance/.
In particular, the above article provides the increase to 110% of the deduction recognized for certain interventions of energy efficiency, reduction of seismic risk, installation of photovoltaic systems and columns for charging electric vehicles, with regard to the expenses incurred from 1 July 2020 to 31 December 2021, also providing that the incentive must be divided into 5 annual instalments of equal amount.
The interventions eligible at 110%
Regarding the energy efficiency, the deduction of 110% is recognized for the following types of structural interventions, i.e. the so called “leading interventions”:
- thermal insulation interventions regarding the building shell with an incidence greater than 25% of the gross dispersing surface of the same building (i.e. the thermal coat). After the changes made by the conversion of the “Relaunch Decree”, the deduction is calculated on a total amount of expenses which varies in relation to the number of building units involved in the intervention (in the original version of the article the eligible expenses could not exceed the threshold of Euro 60.000 per building unit). In particular, it applies a spending limit of: Euro 50.000 for single-family buildings or building units located in multi-family buildings which are functionally independent and have one or more independent accesses from the outside; Euro 40.000, multiplied by the number of units, for the buildings composed from two to eight building units; Euro 30.000, multiplied by the number of units, for the buildings with more than eight building units;
- interventions on the common parts of buildings, single-family buildings or building units located in multi-family buildings which are functionally independent and have one or more independent accesses from the outside for the replacement of existing winter air conditioning systems and the installation of condensing boilers, heat pumps, microgeneration or solar collector systems, as well as the connection to district heating systems. Also in this case the deduction depends on the number of building units involved in the intervention; a spending limit equal to Euro 30.000, provided by the original version of the article, applies to single-family buildings or building units located in multi-family buildings which are functionally independent and have one or more independent accesses from the outside; it is decreased to Euro 20.000 and to Euro 15.000, for each unit, with reference to the buildings composed up-to and beyond the eight building units respectively.
The 110% deduction into 5 annual instalments also applies to all other and different interventions of energy requalification pursuant to article 14 of Law Decree n. 63/2013, within the limits of the expenses provided by the law for each operation, and as long as they are carried out in conjunction with at least one of the “leading interventions” listed above. For example, the expenses incurred by a condomino for the replacement of windows in his own apartment can benefit from the 110% rate, to be divided into 5 annual instalments, if they are combined with the “leading interventions” and provided that the same costs meet the other subjective requirements described in the following paragraphs. Otherwise, they remain eligible at the ordinary rates pursuant to the prior law regime (see example 1 of the Guide “Superbonus 100%” of the Italian tax authorities dated July 24th 2020, pag.23).
Compared to the original version of the “Relaunch Decree”, the increased rate at 110% has been extended to the expenses of energy efficiency incurred in the context of demolition and reconstruction interventions with the same volumetry pursuant to article 3, paragraph 1(d) of the Consolidation Act Building. In addition, the superbonus also applies whether the interventions of energy efficiency are not jointly carried out with the “leading interventions” as long as these latter are prohibited by building, urban and environmental regulations or the building is subject to one of the constraints provided for cultural and landscape heritage.
Even the installation of photovoltaic systems and charging columns benefits from the increase of 110% only if the installation is jointly carried out with the “leading interventions”, if the energy in excess is transferred to the GSE and if the same interventions are not combined with other public incentives or other facilities.
In order to benefit from the maximum 110% deduction, however, the interventions must lead to an improvement of at least two energy classes of the building, or, where it is not possible because the building or the family unit is already in the second-to-last class, to the achievement of the highest energy class, to be demonstrated by the energy performance certificate (A.P.E.), before and after the intervention, issued by a qualified technician in the form of the certified declaration. As specifically provided by the new paragraph 13-bis of the article at object, is also required that the qualified technician issues the certified declaration at the end of the work or for each work progress status, where it must attested the technical requirements and the effective implementation of the intervention. In addition, in the certified declaration the professionals in charge must provide an opinion in relation to the congruity of the expenses incurred by the taxpayer, on the basis of the criteria established by a Ministerial Decree soon to be issued. Until the enactment of the Decree, the congruity of the expenses must be determined by reference to the prices reported in the price lists prepared by the regions and autonomous provinces, to the official price lists or to the price lists of the local chambers of commerce, industry, craftsmanship and agriculture or, in defect, at current market prices on the basis of the place where the interventions are carried out.
Finally, article 119, paragraph 4, extends the 110% deduction to the interventions related to the adoption of anti-seismic measures, the execution of works for static safety, in particular on the structural parts, and to the preparation of mandatory documentation to demonstrate the static safety of the building. The same deduction also applies to the implementation of continuous structural monitoring systems, pursuant by the new paragraph 4-bis.
Regarding the beneficiaries, pursuant to the new wording of article 119, paragraph 9, the 110% deduction applies to the following subjects:
- the condominiums;
- the individuals, outside business activities, arts and professions. For interventions of energy efficiency made on single-family buildings, building units located in multi-family buildings which are functionally independent and have one or more independent accesses from the outside or single apartments of condominium, the 110% deduction is limited to a maximum of two building units. This limitation does not apply to interventions made on the common parts of the building as well as to anti-seismic interventions (see example 3 of the Guide “Superbonus 100%” of the Italian tax authorities dated July 24th 2020, pag.24);
- the Autonomous Social Housing Institutes (IACP) for which it is possible to benefit from the deduction for expenses incurred up to 30 June 2022 (this time extension has been introduced by the new paragraph 3-bis);
- the independent housing cooperatives, non-profit organizations of social utility and voluntary service, social promotion associations and amateur sports associations, for these latter in relation to interventions relating to buildings used as changing rooms.
As clarified at pag. 6 of the Guide “Superbonus 100%” of the Italian tax authorities dated July 2020, business income or professional income owners are considered beneficiaries only with reference to “leading interventions” made by condominiums on the common areas.
Another new feature to be reported, compared to the original version of the article, is that the new superbonus provisions do not apply to building units belonging to the cadastral categories A/1, A/8 and A/9, in other words, noble houses, villas, castles or palaces of eminent artistic or historical value.
Extension of the rules on the transfer of the deduction and instant discount on the consideration
The new wording of the article n. 121 of the “Relaunch Decree” provides, for some specific interventions carried out in the years 2020 and 2021, the possibility for the taxpayer who bares the costs to decide, instead of the direct deduction in the income tax return (5/10 years, depending on the specific intervention realized), alternatively:
- for a contribution, in the form of a discount on the consideration due (s.c. “instant discount”) up to a maximum amount equal to the same consideration due, anticipated by the supplier who carried out the interventions and by himself retrieved in the form of a tax credit, of an amount equal to the deduction allowed, with the possibility – for the supplier – of subsequent disposal of the tax credit to other parties, including credit institutions and others financial intermediaries, or;
- for the transfer of the tax credit, for an amount equal to the deduction, with the possibility of subsequent transfer to other parties, including credit institutions and other financial intermediaries.
Differently from the original version of the Law Decree 34/2020, the transformation of the deduction into a tax credit, to be horizontal compensated with other own taxes, it is foreclosed for the taxpayer who bares the costs.
Moreover, it should be noted that the tax authorities has clarified that the tax credit can be subject to an unlimited number of transfers (see the Guide “Superbonus 100%” of the Italian tax authorities, July 2020, pag.13 and FAQ n.10, pag.29).
The tax credits for which it will be possible to adopt the above-mentioned options are those generated by: redevelopment of the building stock pursuant to article 16-bis, paragraph 1, lett. a) and b) of the Italian Income Tax Code (TUIR) (Irpef deduction of 50%, which from 2021 should return to 36%); interventions of energy requalification pursuant to article 14 of Law Decree 63/2013, with deductions from 50% to 110%; all anti-seismic interventions so called «special» pursuant to article 16 of Law Decree 63/2013, with deductions from 50% to 110%; “facade bonus” under article 1, paragraph 219 and 220 of Law 160/2019, with deduction of 90%; the storage and the photovoltaic systems, pursuant to article 16-bis, paragraph 1, lett. h) of the Italian Income Tax Code with deduction of 50-110%; charging stations for electric vehicles pursuant to article 16-ter of Law Decree 63/2013, with 50-110% deduction.
The new paragraph 1-bis of the article at object has extended the possibility to exercise the option for the transfer of the deduction and for the “instant discount” to each work progress status, also providing that, for each intervention eligible at 110%, there cannot be more than two work in progress status and that the first one must refer to at least the thirty percent and the second to at least the sixty percent of the overall intervention.
The credit can be used through horizontal compensation with F24 form by the transferee, on the basis of the «residual deduction rates not used», with the same annual allocation in which the original deduction would have been used. The limits set by article 31, paragraph 1 of Law Decree 78/2010 (limit in the presence of assessed amounts), by article 34 of Law 388/2000 (annual compensation limit) and by article 1, paragraph 53 of Law 244/2007 (limit set for credit facilities indicated in the income tax return) do not apply.
Pursuant to the article 121, paragraph 3 of Law Decree 34/2020, the transferee cannot use in the following years the potential «part of the tax credit not used in the year» or claim the refund of the amount not used through compensation. In these cases the bonus is lost.
Specific guidelines of the Director of the Revenue Agency, to be adopted within 30 days from the conversion into law of the “Relaunch Decree”, shall define the implementation procedures and the telematic exercise of the options.
Option for the transfer or for the discount on the tax deduction: the specific conditions for the 110% superbonus
Among the interventions enabling taxpayers to benefit the 110% superbonus, pursuant to article 119 of the “Relaunch Decree”, the possibility of exercising the option for the transfer of the deduction or for the discount on the invoice provided by article 121 of the Decree in comment is subject to:
- the request of the “conformity permit” of the data relating to the documentation attesting the existence of the conditions giving entitlement to the deduction. The “conformity permit” is issued pursuant to art. 35 of Legislative Decree n. 241/1997 by the subjects indicated in lett. a) and b), of the third paragraph of art. 3 of Presidential Decree 322/1998 (subjects entered in the registers of chartered accountants, accountants and of commercial experts and employment advisers, etc.) and by responsible for the tax assistance of CAF. These subjects are also required to verify the presence of statements and certificates issued by the professionals in charge;
- the achievement of the certificate, from qualified technicians, on the compliance with the technical requirements for the application of the deduction and on the corresponding congruity of the expenses incurred in relation to the facilitated interventions. As already clarified in the previous paragraphs, for the purpose of the certification of the congruity of the expenses reference shall be made to the prices established by a Ministerial Decree, soon to be issued, which also establishes the method of transmissions of the above-mentioned certification and the related implementation procedures.
The data relating to the option must be transmitted exclusively electronically in the manner arranged by the provision of the Director of the Revenue Agency and by the waited Decree of the Minister of Economic Development.
Finally, it should be noted that the costs incurred for the issuance of certificates/statements and for the “conformity permit ” can be cumulated with the expenses deductible at 110%.
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PwC TLS Avvocati e Commercialisti
PwC TLS Avvocati e Commercialisti