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Restructuring deduction, all the info


Restructuring deduction: how the 2017 extension works, access requirements, admitted interventions and all the news.

Tax deductions 2017, extension

The Budget Law has seen theextensionof the facilities related toproperty renovation. The methods of access have remained unchanged, there are few updates made known by the Revenue Agency and on this page we will discover the meager news for 2017.

Refurbishment deduction on second home

Theretax deduction on restructuringit is valid, equally, for both the first and second house. It is valid on owned homes, both on rented houses or on loan for use if the loan agreement provides for renovation works to be carried out by those who use the property.

Restructuring deduction at 50% and 65%

Thererestructuring deduction can make use of rates ofpersonal income tax deductions50 or 65%.

Who, in home refurbishing, brings an improvement to the energy performance of the building, can count on tax deductions of up to 65%. In this context we speak ofecobonus. The eco-bonus, as well as the 50% deductions, have been extended for all interventions carried out by 31 December 2017.

On this page we will see in detail how to use therestructuring deduction,better defined "Renovation bonus“, We will see what are the deductible interventions and how the incentives are paid.

In the articleHow to access the restructuring deductionswe have listed all the types of interventions you are entitled totax deductions for renovationswhich do not provide for an improvement in the energy performance of the building.

On this page, we will continue to talk aboutrestructuring deductionbut we will do so by referring to thetax reliefof 65% provided by the Italian State to encourage energy savings in the home.

Tax concessions for energy saving: restructuring deduction

The deductions for the interventions of renovation and redevelopment of buildings can still count on a tax relief of 65%. The latest Budget Law extended to 31 December 2017, to the extent of 65%, the fiscal detraction for energy upgrading of buildings.

Hypothesis for a future extension

From 1 January 2018, users will still be able to count on the restructuring deduction but to a lesser extent as the tax relief will pass to 36%, both if it is a mere intervention renovation, both if it is an intervention of renovation designed to improve the energy performance of the building.

Restructuring deduction at 65%

What are the interventions they are entitled to tax deductions 65%?Tax deductions are recognized if the expenses ofrenovationwere supported for:

  • Interventions aimed at reducing the energy requirement for heating (any energy requalification intervention of an existing building with a deductionmaximum of 100,000 euros)
  • Interventions that provide for a thermal improvement of the building. Namely: insulation, thermal insulation, internal or external insulation, interventions on floors, windows including fixtures ... The maximum expense that can bedeductis 60,000 euros.
  • Installation of solar panels for onedeductionmaximum of 60,000 euros.
  • Replacement of winter air conditioning systems. The new heating systems that are entitled totax breaksthey must be powered by biomass fuels, up to a maximum value ofdeductionof 30,000 euros.
  • Solar shields with deductions on purchase and installation up to a maximum value of 60,000 euros

Restructuring deduction: what does this consist oftax break for home renovation?

Thererestructuring deductionit is a tax relief consisting of personal income tax deductions (Tax on personal income) of the Ires (Corporate income tax)and is granted when performing interventions ofrenovation.

  • Fiscal detraction 65% for interventions ofrenovationthat improve the energy efficiency of the building carried out by 31 December 2017.
  • Fiscal detraction 50% for renovations that do not improve the energy performance of the building.
  • Fiscal detractionfrom 50 to 80% if the renovation provides for the seismic adjustment of the building (bonus earthquake).

How to request the 50% restructuring deduction?

Therepersonal income tax deductionyou can ask at the time of tax declaration, by filling in the appropriate section of 730, Single form or other declaration.

For the necessary documentation, you can follow the same rules as for the mobile bonus (also the mobile bonuseswas confirmed for 2017, along with the home appliances bonus).

All methods of access, documentation, reasons for the transfer, type of payment and compilation of the tax return, are explained in the guide articlehow to access the mobile bonus.

How to access thefurniture bonus with renovationor to the simple50% renovation bonusthey are the same. To access theecobonusthere are extra documents to request.

Eco-bonus: how to request the 65% restructuring deduction?

Who wants to make use of the65% restructuring deductionmust necessarily contact a qualified technician because the energy certification appears in the documentation to be kept.

In practice, the technician must certify the compliance of the interventions with the relevant requirements required (increase in energy class). To certify the increase in the energy class, the technician will have to issue the APE, energy performance certificate. The Ape is always required except for the interventions of:

  • replacement of fixtures
  • replacement of winter air conditioning systems
  • installation of solar panels

For all the official info on the eco-bonus, in addition to the Revenue Agency website, you can trust the official Enea portal.

How is the incentive paid?

A practical example: Mr. Rossi owns a rural home and decides to renovate itwithout improving its energy efficiency, so it has the right topersonal income tax deduction50%.

For the renovation, Mr. Rossi incurs an expense of 70,000 euros and specifies it when presenting the 730 (or even single model) so that 35,000 euros will be returned to him in ten annual installments of 3,500 euros. The refund will be made by filling in the appropriate items in the Single or 730 form. The installment has been standardized to 10 installments even for those over 75 years old (previously there were 5 installments for those over 75) and those over 80 years old (in previously only 3 quotas applied).

In case ofsismabonusthetax reliefit will be divided into 5 annual installments. The Revenue Agency informs that, in the event of seismic adaptation, the time required for the personal income tax deduction is halved, going from 10 years (expected times for 65% ecobonus and 50% restructuring bonus) to just 5 years.

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