Edited by Maurizio Pavia, Francesco Pizzo, Piera Penna, Magda Serriello, Federica De Luca, Annalisa Di Ruzza
Tax Section
The Italian Revenue Agency examines the role of the general contractor in the context of the so-called “Superbonus”
With Resolution No. 17 of 29 April 2026, the Italian Revenue Agency clarifies which expenses are actually eligible for deduction under “Superbonus” (Article 119 of Decree Law 34/2020) when construction works are carried out through procurement and subcontracting arrangements involving a “general contractor”.
The clarification stems from certain challenges raised during audits, particularly in cases where, in the presence of subcontracting, the remuneration of the main contractor exceeded that paid to subcontractors and was sometimes reclassified as compensation for mere coordination activities (and therefore considered non-deductible).
The Agency begins by noting that the figure of the “Superbonus general contractor” is not legally defined in private law relationships and reiterates a principle already expressed in previous guidance (Italian Revenue Agency Circulars No. 30/2020 and 23/2022), according to which only costs directly attributable to the execution of the qualifying construction works are deductible, while fees for mere coordination or administrative management activities are not, even if performed by the general contractor.
After reviewing the most commonly used contractual structures, the Italian Revenue Agency distinguishes between the following scenarios:
- “Pure general contractor”, performing only coordination/intermediation activities, whose fees are not deductible;
- “General contractor acting as contractor”, assuming responsibility for execution of the works (including via subcontracting), whose remuneration is deductible, provided that all regulatory conditions are met.
In this context, the Agency stresses that the key aspect is not the formal qualification of the contract, but rather its substance, the nature of the services provided, and the documentation demonstrating the direct link between the costs and the construction works.
Significant public contributions: Prime Ministerial Decree published in the Official Gazette
On 20 May, Prime Ministerial Decree (DPCM) No. 84 of 26 March 2026 was published in the Official Gazette. This decree implements the new obligation introduced by the 2025 Budget Law, which requires the supervisory bodies of companies and entities receiving “significant” State contributions to verify that such funds have been used in line with their intended purpose and to submit an annual report to the Ministry of Economy and Finance (MEF).
The decree applies to contributions received from 1 January 2025.
It defines “significant contributions” as those granted by central government administrations, by companies directly majority-controlled by them (excluding listed companies pursuant to Legislative Decree 175/2016 and their subsidiaries), and by non-economic public entities under their supervision, provided that:
- they are intended for the implementation of specific public-interest objectives or projects;
- they exceed EUR 1 million annually or, if below this threshold, represent at least 50% of the total revenues or production value of the beneficiary.
The supervisory body’s report must be submitted to the MEF by April 30th of the year following the year in which the contributions were granted.
The transitional regime for 2025 contributions (for which the ordinary reporting deadline has already lapsed) and the MEF decree governing electronic submission procedures are still to be defined.
Hyper-depreciation: draft implementing decree issued (MEF–MIMIT)
On 4 May, the implementing decree of the Ministry of Enterprises and Made in Italy (MIMIT) and the Ministry of Economy and Finance (MEF) on the 2026 hyper-depreciation regime was approved.
The decree implements paragraphs 427–436 of Law No. 199/2025 (2026 Budget Law), setting out the operational rules for accessing the new hyper-depreciation incentive for investments made between 1 January 2026 and 30 September 2028.
Leaving aside from detailed discipline (please see our ad hoc newsletter), we focus on energy-related aspects.
In fact it is worth reminding that in addition to the asset categories already included in previous versions of the incentive, the measure also covers plants for self-generation and self-consumption of renewable energy (FER), as defined in the decree. These investments qualify only if they are functional to the company’s production structure and are not intended for sale on the market.
Consistently, the decree introduces a capacity limit proportionate to the energy needs of the production facility, with specific rules for calculating such needs. The incentive also applies to storage systems, provided they are strictly functional to self-consumption and the plant’s production capacity.
“Decreto Bollette” converted into law
Law No. 49 of 10 April 2026 converted, with amendments, Decree Law No. 21/2026. The increase of two percentage points in the IRAP rate remains unchanged. The increase applies to the tax period following the one in progress at 31 December 2025 and to the subsequent one (i.e. 2026 and 2027 for “calendar year” taxpayers), with effects already reflected in advance tax payments.
Please see also our previous newsletter on this topic and please find below the table including sectors subject to the increase.
Decommissioning provisions: Assonime circular comments on the tax decree
In recent weeks, Assonime issued Circular No. 13 (published on 28 April 2026) addressing the accounting and tax treatment of decommissioning and restoration provisions.
The circular examines the provisions of Ministerial Decree of 27 June 2025, aimed at aligning the rules for determining the IRES and IRAP tax bases with the accounting changes introduced by OIC 34 on revenue and by amendments to OIC 16 and OIC 31 (March 2024) relating to decommissioning and restoration costs.
Although not an official interpretative source, the circular provides noteworthy considerations.
Overall, it expresses a critical assessment of the decree, highlighting formal issues, due to the timing of its issuance close to the deadline for tax payments relating to FY 2024 (first year of application of the new rules) and also substantive issues, as the decree only partially incorporates the new accounting principles for tax purposes.
According to Assonime, this approach is inconsistent with the guiding principles of the tax reform enabling law (Law No. 111/2023) and leads, in several cases, to complex dual-track accounting and tax management.
We take this opportunity to point out another recent development concerning dismantling provisions. Indeed, the OIC has recently issued a document containing the response to certain requests for clarification regarding accounting standard OIC 31. The document has an accounting nature but it provides an interesting basis for reflection on potential tax implications.
The case under analysis concerns a company that operates fuel service stations and that, under the applicable regulations, is required, at the end of the useful life of the facilities, to fully remove the equipment, both above and below ground, as well as to restore the land to its original condition.
First of all, OIC highlights the distinction between the accounting treatment of:
- the dismantling and restoration provision, which pursuant to OIC 16 and OIC 31 must be recognised as a counterpart to the tangible (or intangible) fixed asset at the time when the obligation arises; and
- the environmental remediation provision, to be recognised where the operation of the plant has caused environmental damage and the company is required to remedy it.”
Among the responses provided, number 5, “recognition of provisions not reliably estimable in previous periods,” is of particular interest, as the “loss, although probable, is not capable of any reliable estimation, not even of a minimum amount or a range of values.” In this context, “Where it has not been possible to perform a reliable estimate of the dismantling and/or restoration provision, the initial recognition of a dismantling and/or restoration provision that was not reliably estimable in previous periods is considered a change in accounting estimate.”
Participation Exemption (PEX) – case law on project companies in renewable energy
We recall in this section relevant to Energy Outlook our recent newsletter available at the link.
In its ruling, the Italian Revenue Agency (referring to Circular 7/E of 2013) held that, in the specific case, the companies being transferred lacked the capacity—actual or potential—to meet market demand within a reasonable timeframe, as relevant activities had been carried out by other entities (see newsletter for details). Consequently, the requirement of “commerciality” for the purposes of applying the Participation Exemption was not met.
Also in the light of this interpretation it arise the importance of a case-by-case assessment of the “commerciality requirement”..
Surface rights: not taxable if the transferor relinquishes all real rights
In Ruling No. 51/2026, the Italian Revenue Agency confirmed that the establishment of a surface right over agricultural land, combined with the simultaneous transfer of bare ownership to third parties, does not in itself give rise to a taxable capital gain pursuant to Article 67 of the TUIR, provided that the transferor does not retain any real right over the property.
The authentic interpretation rule (Article 1, paragraph 1-bis, of Decree Law No. 84/2025) clarifies that the consideration qualifies as miscellaneous income (letter h) only if the transferor retains a real right; otherwise, the capital gains regime applies (letter b), which is not taxable for properties held for more than five years.
The ruling addresses the correct tax treatment, for the purposes of Article 67 of the TUIR, of a complex generational transfer planning transaction involving non-buildable agricultural land. In particular, the applicant plans the simultaneous creation of a surface right in favour of a company and the transfer of bare ownership of the same land to his son. The Italian Revenue Agency refers to the amendments introduced by the 2024 Budget Law and the subsequent authentic interpretation provision (Decree Law No. 84/2025), clarifying the distinction between miscellaneous income and real estate capital gains. It is specified that the consideration received constitutes a taxable capital gain only if the transferor disposes entirely of any real right over the property. In the case at hand, since the applicant retains no real right and the land has been held for more than five years, no taxable capital gain arises pursuant to Article 67, paragraph 1, letter b) of the TUIR.
According to the Supreme Court, no real estate tax (“IMU”) return is required for changes in the value of building land
The Italian Supreme Court, with judgment No. 13662/2026, established that changes in the value of building land do not trigger an obligation to file an IMU return. Indeed:
The market value of the land is information already available to the Municipality through ordinary real estate market monitoring tools.
Imposing a reporting obligation on a value that is inherently variable and not predetermined would be excessive for taxpayers.
As a result, in case of dispute, the Municipality must proceed with an assessment for underpayment, rather than for failure to file a return. This also affects the penalty regime and the limitation periods, which are shorter than in cases of omitted filing.
The decision falls within a line of case law already established by the same Court (see order No. 11443/2023). The obligation to file an IMU return remains limited to cases expressly provided for by law. Mere fluctuations in market value do not fall within these cases.
Supreme Court: the Single Royalty Levy (“CUP”) has a tax nature and disputes fall under the jurisdiction of the tax courts
With judgment No. 12225 of 1 May 2026, the Joint Sections of the Supreme Court clarified that disputes concerning the single royalty levy (“Canone Unico Patrimoniale”, CUP) fall within the jurisdiction of the tax courts.
The CUP, introduced by Law No. 160/2019, replaced various local levies (TOSAP, COSAP, municipal advertising tax and public posting rights). Since these revenues had different legal natures, significant uncertainty had arisen over time regarding the classification of the new levy and, consequently, the competent court.
The Court states that:
- to classify a levy, reference must be made to its substantive nature, rather than to the name assigned by the legislator;
- the CUP has the typical characteristics of a tax: authoritative imposition, an objective taxable event (occupation of public space or dissemination of advertising messages), and the absence of a synallagmatic relationship;
- the fact that the levy is linked to a concession measure does not transform it into a contractual consideration.
The judgment therefore appears to overcome the TOSAP–COSAP dualism and reconstructs the CUP as a single levy of a tax nature, in that “the CUP, although defined as ‘patrimonial’ and notwithstanding that it is based on two distinct constituent elements, is unitary and the levy displays the typical characteristics of taxes”. The Court “sets out the following principle of law: ‘The single asset levy referred to in Article 1, paragraphs 816–847, of Law No. 160 of 2019, constitutes, in any event, a tax’”.
A corollary of this principle is that “the CUP, considered as a whole, always has a tax nature, with the resulting allocation of related disputes to the jurisdiction of the tax courts.”
Italian Decree-Law no.89/2026: Urgent provisions on fuel prices and support for economic activities due to the prolonged crisis in international markets
With Decree-Law 89/2026 (Urgent provisions on fuel prices and support for economic activities due to the prolonged crisis in international markets), published in the Italian Official Gazette on May 22, 2026, the excise duty rates on petrol, diesel, liquefied petroleum gases (LPG) and natural gas used as fuels have been revised for the period May 23 – June 6, 2026:
- petrol at €622.90 per thousand litres,
- diesel at €572.90 per thousand litres,
- LPG at €242.77 per thousand kg,
- natural gas at €0 per cubic metre.
Fuels: application of VAT with advance payment upon release for consumption confirmed
Ruling No. 1/D of 20 March 2026 issued by the Italian Customs Authorities have confirmed the application of the advance VAT payment regime upon the release for consumption of fuels from tax warehouses.
In particular, it has been clarified that the legislative developments concerning excise duties have not altered the scope of application of Article 1, paragraph 937, of Law No. 205/2017. Consequently, the release for consumption of petrol and diesel intended for use as motor fuel remains subject to the prior settlement of VAT by the party on whose behalf the authorised warehouse keeper carries out the transaction.
The VAT must be paid in advance, without the possibility of offsetting, and the relevant details must be indicated in the e-DAS, in line with the anti-evasion purpose of the legislation.
The rules continue to apply to motor fuels subject to ordinary excise duty and also extend to the updated customs classifications of diesel, covering both fossil diesel and HVO (paraffinic diesel), regardless of the applicable excise rate, provided they are intended for use as motor fuel.
Therefore, the administrative guidance is fully aligned with the current legislative framework, while providing useful clarifications to more precisely define its scope of application.
Public grants and VAT: the Supreme Court clarifies the limits of price-linked taxability
Judgment No. 6969 of 23 March 2026 of the Italian Supreme Court addresses the VAT treatment of public grants, incorporating the principles established by the case law of the Court of Justice of the European Union, in particular Case C‑615/23.
The case concerned grants awarded by local authorities to a company for infrastructure works: while the company treated them as outside the scope of VAT, the Italian Tax Authorities classified them as consideration supplements and therefore taxable.
The Supreme Court clarified that, for VAT purposes, it is essential to assess the function of the grant and its relationship with the price of the service. In particular, a grant is subject to VAT only where it has a direct link with the consideration, i.e. where it enables the supplier to charge lower prices to users.
However, it is not sufficient that the grant has a generic impact on the price: taxability is excluded where no specific link exists, for example in cases where the service is provided to an indistinct community and it is not possible to allocate the grant to individual users.
In line with EU case law, the Court also identified three conditions for classifying a subsidy as part of the consideration: allocation to a specific service, proportional reduction of the price, and determinability of the amount.
It is therefore clear that the ruling excludes any automatic treatment and requires a case-by-case assessment: grants are relevant for VAT purposes only where there is a direct and concrete link with the price charged to users.
For the sake of completeness, please find below links to our previous in-depth newsletters on this topic:
Rassegna fiscale per Energy e Utilities – aggiornamenti rilevanti, novembre 2024
Rassegna di aggiornamento su temi fiscali rilevanti per il settore Energy e Utilities, ottobre 2023
Waste transport and disposal: clarification of the VAT regime between reduced and standard rates
The ruling No. 6 of 17 March 2026 issued by the Italian Tax Authorities forms part of the framework of changes introduced by the 2025 Budget Law, providing clarifications on the VAT treatment of services related to waste management.
The key issue concerns the classification of waste transport as an autonomous transaction, pursuant to the sector-specific legislation, resulting in the exclusion of the application of the ancillary principle under Article 12 of Presidential Decree No. 633/1972.
In this context, the legislation has excluded landfill disposal and incineration without efficient energy recovery services—relating to both municipal and special waste—from the reduced 10% VAT rate, subjecting them, as of 1 January 2025, to the standard 22% rate.
Conversely, management, storage and temporary storage activities, as well as the operation of sewerage and wastewater treatment facilities, fall within the scope of the reduced rate.
In light of this framework, the Italian Tax Authorities confirm that transport services continue to benefit from the 10% VAT rate, even when they are functionally linked to disposal operations subject to the standard rate.
From a systematic perspective, the adopted approach emphasises the autonomy of individual supplies, in line with VAT principles and the need for certainty in determining the applicable rate.
From an operational standpoint, this entails the need to properly distinguish the services in invoices, separating:
- waste transport (10% rate);
- landfill disposal or incineration without energy recovery (22% rate).
Ultimately, the clarification contributes to more precisely defining the scope of application of VAT rates in the sector, avoiding broad interpretations of the ancillary principle.
Legal section
News on the Biomethane Facility and PNRR
The incentive framework for the development of biomethane has been renewed in 2026 with important regulatory and operational updates which, on one hand, guarantee a longer incentive period compared to the current one (postponing the deadlines for the completion of plants eligible for incentives) and, on the other hand, revolutionize the system of access to and management of the incentives.
Biomethane Facility: the new €2.2 billion program
With the entry into force of art. 27 of Decree-Law no. 19 of 19 February 2026, the so-called “Biomethane Facility” introduces a financial grant program managed by the GSE, which steps into the rule of the Ministry of the Environment in relations with the management of the incentives. This instrument provides concrete support for investments in new biomethane plants and the reconversion of biogas plants into biomethane plants, offering the possibility to continue benefiting from the envisaged incentives (i.e., capital grants up to 40% of eligible expenses and an incentive tariff for a 15-year period) for plants completed within 30 June 2028 (whereas the previous system required completion of plants by 30 June 2026 to access PNRR contributions).
Strict operational mechanisms
The GSE, according to the application rules issued on 27 March 2023, applies a three-phase system for granting incentives: signing the concession deed by 30 June 2026, signing the deed of obligation, and the acceptance note. Controls on access to more incentive schemes, anti-mafia checks, and conflicts of interest are strengthened, with consequent forfeiture in case of irregularities.
The operational rules also introduce (i) the obligation to start the works within 3 months from the finalization of the concession deed otherwise the beneficiary loses the right to incentives, unless a security deposit equal to 5% of the investment cost is provided to the GSE as a guarantee for the completion of the investment within the same deadline, and (ii) the completion of works and commissioning within 24 months from the signing of the concession deed.
Prohibition on double funding and maximum transparency
The prohibition on cumulating more EU funds is confirmed for the Biomethane Facility: all expenses must be accounted for with traceable documents (CUP, CIG, references to Next Generation EU) to ensure compliance and prevent irregularities in respect of PNRR rules.
For operators and investors in biomethane, the Biomethane Facility represents a strategic regulatory breakthrough: specific timelines, defined guarantees and stringent controls.
The Energy Bills Decree: New Grid Connection procedures – Open Season Mechanism and Transparent Capacity Allocation
With its publication in the Official Gazette on 18 April 2026, issue no. 90, Decree-Law no. 21 of 20 February 2026 (known as the “Energy Bills Decree” or “DL 21/2026”) has been converted into law.
Within 90 days of the Energy Bills Decree coming into force, MASE and ARERA will define the criteria for assessing the technical and economic availability of grid capacity, and within 180 days, ARERA will establish the technical and economic conditions and procedural arrangements for connecting installations, supplementing and amending the Integrated Text on Active Connections (“TICA”).
The main innovations: transparency, efficiency and integrated governance
The Energy Bills Decree provides for:
• the prior, quarterly publication of available capacity;
• coordination with local operators;
• constant updating of information.
The “Open Season” model: transparent procedures for grid capacity allocation
The “open season” mechanism is established, i.e. a period during which all operators may submit connection requests in coordination with Terna and local operators.
Under the open season mechanism, the frequency and timing of which will be determined by ARERA:
• connection requests are collected at defined points;
• capacity allocation will follow transparent and standardized criteria;
• TERNA may issue “minimum general technical solutions” ( Soluzioni Tecniche Minime Generali- “STMG”) even where the requested connection points exceed the network’s theoretical maximum capacity.
Distribution network operators may also apply similar procedures, with one important distinction: on low-voltage networks, smaller-scale plants may be connected even before upstream high-voltage grid upgrades are completed.
Permanent connection may only be granted to projects holding the required permitting title or a single authorization, and revocation mechanisms shall apply where necessary permits or single authorization are not obtained.
Transitional Regime and Safeguards: balancing innovation and continuity
The implementation of the new framework will be subject to a transitional phase during which connection solutions may be granted even beyond the nominal grid capacity limits.
Upon the adoption of the implementing provisions by ARERA, a mechanism for the automatic forfeiture of grid connections for unauthorized projects or projects lacking requisite permits shall be triggered, although operators shall remain entitled to participate in the open season procedures.
The return of nuclear power in Italy: the state of regulatory developments
More than thirty years after phasing out nuclear power following the 1987 referendum (a decision reinforced by the 2011 referendum), Italy is now in the midst of a process to reintroduce nuclear energy into the national energy mix in a regulated manner. The process initiated by the Government does not aim at the immediate reactivation of plants, but at the construction of a comprehensive regulatory framework, in line with: the European decarbonisation targets for 2050; the requirements of energy security and cost stability for the production system and households.
The main legislative instrument is Draft Law A.C. 2669 (“Delegation to the Government on sustainable nuclear energy” or “DDL”), presented on 17 October 2025.
The DDL constitutes an act of “regulatory planning” rather than immediate authorisation of plants. As of the date of this update (end of May 2026), the process is at an advanced but not yet concluded stage. The measure is currently under consideration by the Chamber of Deputies. In terms of legislative procedure, this marks the transition from the preliminary examination phase to the plenary decision-making phase.
The enabling act is expected to be approved by summer 2026, followed by the adoption of implementing legislative decrees within 12 months of its entry into force.
The implementing decrees will need to regulate: national planning (Sustainable Nuclear Programme); siting, licensing and operation of plants; management of fuel and radioactive waste; decommissioning of existing plants; research and development (including nuclear fusion); and the structure of institutional competences and safety authorities.
The draft legislation highlights a specific focus on Small Modular Reactors (SMR), advanced nuclear technologies (AMR), fusion research in line with the European taxonomy and the EU industrial strategy, the enhancement of the national and European industrial supply chain, and the possibility for local authorities to put themselves forward as potential hosts for nuclear plants.
Draft Law A.C. 2669, in its current form, does not directly regulate the procedures for the construction and operation of nuclear power plants, leaving these matters to implementing legislative decrees. However, in light of: the capital-intensive nature of nuclear power plants; the long timeframe (construction and operation); and the need for efficient risk allocation, it is highly likely that the delegated legislator will resort to public-private partnership (PPP) models and/or works and services concessions.
Energy windfall profits: the dispute remains unresolved and returns to the Court of Justice of the European Union
By Orders Nos. 3550 and 3552 of 6 May 2026, the Council of State has once again ruled on the dispute concerning the revenue cap mechanism introduced by Article 15-bis of Decree-Law No. 4 of 27 January 2022, No. 4 (‘Decree-Law No. 4/2022’), rejecting the applications by the Energy Services Operator (‘GSE’) seeking the revocation of the preliminary rulings already ordered and confirming that the conditions for a decision by the Court of Justice of the European Union (‘CJEU’) remain in place.
The regulation of energy windfall profits forms part of the emergency measures adopted in 2022 to tackle the energy crisis and is based on the introduction of a revenue cap applicable to certain categories of producers, with the GSE subsequently recovering any excess amounts. Since its introduction, the mechanism has been the subject of extensive litigation, centring, inter alia, on its compatibility with European Union law, compliance with the principles of proportionality and the protection of legitimate expectations, and the methods for determining the revenues subject to the levy.
The framework has evolved with the adoption of Council Regulation (EU) 2022/1854 of 6 October 2022 (“Regulation (EU) 2022/1854”), which introduced a harmonised model for addressing windfall energy profits, and with the gradual transfer of the litigation to the European level through preliminary rulings under Article 267 TFEU.
It is within this context that the orders of the Council of State, adopted following the judgments of the CJEU in the Electrabel (C-633/23) and Secab (C-423/23) cases, are situated; according to the GSE, these judgments have already clarified the main aspects of the national legislation’s compatibility with European law. The Council of State, however, rejected this conclusion, noting that the questions referred to the Court do not coincide with those already examined and retain their own autonomy for the purposes of the decision.
According to the Court, the European rulings have provided relevant guidance, but do not fully resolve all the critical issues connected with the specific configuration of the Italian system. There therefore remains a need for a new assessment by the CJEU, including in relation to the relationship between the national legislation and the subsequent harmonising intervention by the Union, as well as to the period prior to the entry into force of Regulation (EU) 2022/1854.
The orders therefore confirm that the preliminary rulings already ordered will proceed and that the Court of Justice will once again be called upon to rule on issues likely to have a significant impact on the sustainability of the national system for energy windfall profits and on the stability of the regulatory framework.
In conclusion, the Council of State’s decisions do not prejudge a final ruling on the compatibility of the Italian legislation with EU law, but confirm that the dispute remains open and that the European rulings issued to date are not considered sufficient to dispel the interpretative doubts.
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