Seismabonus is an important tax deduction opportunity for seismic risk reduction, offering property owners the opportunity to take advantage of tax benefits for the implementation of earthquake-resistant interventions. This tool is of particular relevance to buildings located in earthquake-prone areas, as it allows their safety and stability to be improved.
Seismbonus 2023: overview
The Seismabonus 2023 represents an opportunity for taxpayers who intend to carry out earthquake-resistant work to obtain a 110 percent tax deduction or to give the tax credit to a third party. This facility was introduced with the aim of promoting interventions to improve the safety of buildings and reduce seismic risk and can cover an expenditure of up to 96,000 euros.
Which earthquake-resistant interventions are eligible for tax deductions
A wide range of interventions aimed at reducing the seismic risk of buildings are eligible for tax deductions, including seismic improvement interventions, demolition and reconstruction interventions, and interventions on buildings located in seismic zones. This diversification of permissible types of intervention offers the possibility of tailoring safety measures to the specific needs of each building, ensuring effective protection against seismic events.
The interventions allowed to take advantage of the Sismabonus relate to securing and reducing the seismic risk of buildings and, in general, seismic improvement and retrofitting.
Interventions on roofs aimed at increasing load-bearing capacity, reducing weight, and other structural improvements are allowed.
Repair and rehabilitation of structural elements made of masonry, reinforced concrete or steel aimed at this purpose are also allowed.
Variability of the tax deduction
The tax deduction offered varies depending on the type of work performed:
- If the intervention does not involve the improvement of seismic class, the deduction is 50%.
- On the other hand, if there is an improvement of one seismic class, the deduction can go up to 70%/75%.
- If you improve two seismic classes you can deduct up to 80%/85% of the expense.
- For interventions included in the Superbonus, the expected deduction is 110%.
Legislative changes
Budget Law 197/2022 extended the expiration of the Sismabonus to December 31, 2024.
Decree 11/2023 introduced restrictions on credit assignment and invoice discounting for work started after Feb. 16, 2023.
Which earthquake-resistant interventions are eligible for tax deductions
A wide range of interventions aimed at reducing the seismic risk of buildings are eligible for tax deductions, including seismic improvement interventions, demolition and reconstruction interventions, and interventions on buildings located in seismic zones. This diversification of permissible types of intervention offers the possibility of tailoring safety measures to the specific needs of each building, ensuring effective protection against seismic events.
Super Sismabonus
The benefits of the 110% Super Sismabonus for earthquake-resistant work
The 110% Superbonus is an additional incentive for earthquake-resistant work, allowing for an exceptional tax deduction covering 110% of the expenses incurred. This tool offers significant economic benefits for the implementation of interventions aimed at reducing seismic risk.
Tax savings and incentives for demolition and reconstruction
The 110% Superbonus offers considerable tax savings for interventions such as demolition and reconstruction, helping to promote the construction of safer buildings that comply with earthquake-resistant regulations. This opportunity encourages the renovation of the building stock, promoting safety growth and reducing seismic risk.
Details of seismic improvement and renovation work
Seismic improvement and renovation work is among the types eligible for the 110% Superbonus, allowing property owners to benefit from significant tax deductions for carrying out work to improve the safety and stability of buildings.
Deduction percentages for 2023
Deduction from 70% to 85% for expenses incurred from July 1, 2020 to December 31, 2024, under the Superbonus.
What to expect from the Seismbonus after December 31, 2024
After December 31, 2024, it is important to assess the prospects and possible evolution of the Sismabonus, taking into account any regulatory changes and provisions that might affect the tax deduction for earthquake risk reduction. This will allow for better planning of future interventions and the most appropriate strategies to take advantage of available tax breaks.
The Seismabonus allows a percentage of the expenditure incurred for earthquake-resistant work on residential and nonresidential properties to be deducted from the amount of taxes due. The deduction is in equal annual installments and can be applied to both improvement and demolition and reconstruction work. This tool represents an important opportunity to improve building safety, contributing to seismic risk reduction.
After the Superbonus period, deductions will vary according to the type of intervention and return to the ordinary percentages, from 85 percent to 50 percent, depending on the safety levels of the property.
Spending limits
The maximum eligible expenditure is 96,000 euros per single housing unit.
For condominium buildings, the limit is multiplied by the number of units, and the issue deserves further study.
Condominium buildings: considerations for common parts
The common parts of condominium buildings are an important area of intervention for seismic risk reduction, as the safety of the entire building also depends on the condition of these components. For this reason, it is essential to adopt interventions aimed at securing common parts in order to benefit from the tax advantages provided.
Tax deductions for interventions on residential type real estate
Tax deductions for work on common parts are also aimed at real estate used for residential purposes, offering the opportunity to improve the safety of condominium buildings and benefit from tax breaks for earthquake-resistant work. This represents an important tool for incentivizing the securing of housing stock.
Specific circumstances for the tax deduction of interventions on common parts
The tax deduction for work on the common parts of housing units has specific circumstances and requirements that must be met in order to qualify for these benefits. It is important to carefully consider the conditions and modalities for accessing tax benefits to ensure their proper use.
Additional incentives: spending limit raised by 25 percent
For earthquake-resistant work combined with energy upgrades, the maximum expenditure for deductions is 136,000 euros per property unit.
Additional incentives are recognized for earthquake-resistant interventions carried out on the common parts of condominium buildings, where such interventions are combined with energy upgrading works. However, these must cover at least 25 percent of the building’s dispersing area. This benefit is recognized on a maximum expenditure of 136,000 euros multiplied by the building’s housing units.
If you upgrade to a lower risk class, the deduction is 80%, which can be divided into 10 annual installments. If the interventions allow the building to achieve two lower risk classes, the deduction goes up to 85 percent.
A prerequisite is that in order to qualify for the deduction, the building must be located in seismic zones 1, 2 or 3, and the interventions must be jointly concerned with energy upgrading and seismic risk reduction.
Credit assignment and invoice discounting
Credit transfer represents an opportunity to obtain immediate benefits from the seismbonus, allowing the right to the tax deduction due for earthquake-resistant work to be transferred to others. This possibility offers advantages both for taxpayers facing immediate financial needs and for individuals who can benefit from the tax break more quickly, enabling the implementation of interventions more smoothly.
How credit assignment for earthquakebonus works
The transfer of credit for seismbonus allows those who have incurred expenses for earthquake-resistant work to transfer the right to the tax deduction due to third parties. This mechanism provides an opportunity to obtain liquidity in a timely manner, allowing easier financing of seismic improvement works. It is important to keep in mind that the possibility of credit assignment can be a significant opportunity to facilitate the implementation of interventions by offering immediate financial solutions.
Invoice discount: how to get it with seismbonus
The invoice discount mode is an option to obtain immediate benefits from the seismbonus. This opportunity allows for a discount on the fee for earthquake-resistant work, providing a direct economic benefit for those who have incurred the expenses. It is essential to pay attention to the requirements and procedures for obtaining the invoice discount and make sure to obtain all the necessary documents to qualify for this benefit.
Limits of credit assignment
The credit assignment and invoice discount remain available only for interventions for which the building permit application was submitted by February 16, 2023, according to the provisions of DL 11/2023, which limited this option.
For interventions initiated after this date, however, the option was introduced to spread the amount in 10 annual installments instead of the 4 or 5 installments previously provided for communications sent up to March 31, 2023 that have not yet been used.
Documentation and compliance
In order to obtain the tax deduction or tax credit resulting from the Sismabonus 2023, taxpayers must communicate exclusively through the electronic means available in the restricted area of the website of the Internal Revenue Agency and send the relevant communications to the Agency within the established deadlines. In addition, it is necessary to comply with regulatory requirements and provide all the required documentation for the use of these benefits.
It is essential to fill out the documentation correctly and make sure to obtain all the necessary certificates of compliance and documents proving the proper execution of the interventions issued by the specific Professional Orders and Colleges. In addition, it is important to keep in mind that the risk class of the building in which the interventions are to be carried out can influence the amount of tax deduction obtainable.
In order to use the credit transfer, payments must be made by means of talking money transfers, specifying: reason for payment, the tax code of the recipient of the deduction, and the VAT number or tax code of the person in whose favor the transfer is made.
