Housing bonus 2023: list of incentives from first home to Superbonus
It is ending this 2023 that has seen the presence of several housing tax incentives. It is important to stay up-to-date on current and expiring ones to plan for upcoming expenses your home may need. Those commonly referred to as home bonuses are a series of measures and concessions aimed at different types of interventions on real estate, mainly attributable to two themes: renovation and improving the energy efficiency of buildings.
For all those who have purchased or intend to purchase, renovate or improve a home, these bonuses are an excellent opportunity to spend less and make better interventions. In order to take advantage of them, however, it is necessary to pay attention to the limits, features and deadlines of each one. We will delve into what they are, how they work, who they are intended for, and until when you can apply for them.
First Home Bonus
To facilitate access to a mortgage for the purchase of a first home, the “Supports bis” decree law of 2021 introduced tax breaks for young people up to age 36. These facilities, valid for transactions by Dec. 31, 2023, offer support to those who wish to obtain a mortgage for their first home. The benefits are reserved for those under 36 years of age, annual ISEE income under 40,000 euros, who establish residence within 18 months of purchase in the municipality of the property and do not own other homes with first home benefits in Italy. The benefits include exemptions from registration, mortgage and cadastral taxes for transactions not subject to VAT, and tax credits for those subject to VAT.
Superbonus
The Superbonus in Italy, despite some changes, retains its relevance in 2023. Approved by Nov. 25, 2022, and with Cila submission by Dec. 31, 2022, it still allows condominiums to take advantage of the 110%. From January 1, 2023, the rate is reduced to 90 percent, with some exemptions for those who meet the deadlines. Eligible interventions include thermal insulation, winter air conditioner replacement, earthquake interventions, energy efficiency, solar installations, and more. Applies to condominiums and individuals with buildings of two to four units. For cottages, in 2023, it applies at 90% if the house is the taxpayer’s first home and the income is within certain limits. By completing 30% of the work by September 2022, it is still possible to take advantage of 110% until the end of 2023.
Renovation Bonus
The 2023 Home Renovation Bonus 2023 has been extended until 2024, offering a 50 percent tax benefit on expenses up to 96,000 euros per housing unit. With this Bonus you can replace roofs, fixtures, windows and shutters. This facility still allows discounts for home improvement until next year.
Sismabonus
Sismabonus is an incentive aimed at supporting interventions to reduce seismic risk in residential buildings. The tax deduction, which ranges from 50% to 85%, depends on the increase in the seismic class of the building. Until December 31, 2024, significant tax benefits can be obtained for improving the seismic safety of buildings, with rebates based on the location and type of work.
Ecobonus
Ecobonus covers energy efficiency interventions in buildings, offering tax breaks of 50% or 65%. These interventions include thermal insulation, floor replacement, windows, photovoltaic systems, modifications to air conditioning systems, blinds, mosquito nets, and low-impact boilers. It is necessary to send a notice to ENEA within 90 days of the completion of the work. The benefit will remain valid until December 2024, with a reduction to 36 percent and spending limits in 2025, as well as restrictions for higher incomes.
Architectural Barriers Bonus
The Architectural Barrier Removal Bonus is extended until 2025, offering a 75 percent tax deduction. Applies to expenses to remove obstacles to mobility, without the need for the property to be owned or inhabited by persons with disabilities. The maximum deduction ranges from 30,000 to 50,000 euros, depending on the type of building involved. In 2023, it could increase to 90 percent if linked to interventions benefiting from the Superbonus.
Furniture Bonus
There is also a bonus for the purchase of furniture and appliances. Owners of properties subject to renovation can use it. The maximum amount is 8,000 euros for 2023, reduced to 5,000 euros in 2024. Transportation and assembly charges are included. The Internal Revenue Service specifies that it is up to the taxpayer claiming the deduction for building renovation expenses.
Green Home Bonus
The Green Home Bonus 2023 offers a 50 percent deduction on VAT for the purchase of property with energy classification A or B. The benefit is disbursed in 10 annual installments, starting from the year of expenditure. The purchase must be made by December 31, 2023, and is intended for individuals subject to IRPEF, excluding corporations and non-commercial entities.
Green Bonus
The Green Bonus is also included among the 2023 First Home Bonuses. With this Bonus you can get a 36% IRPEF deduction for green landscaping expenses. These expenses may relate to areas of existing buildings, individual housing units or attached outbuildings. Fences, digging wells or irrigation systems, and generally anything having to do with the garden are also allowed. Alternatively, the incentive also applies to the construction of green roofs and roof gardens. The benefit can be used until December 31, 2023, with a maximum expenditure of 5,000 euros per property.
The incentive covers all interventions carried out by an apartment building, with a proportional increase in the expenditure ceiling. The 5,000 euro limit is multiplied by each housing unit in the building. To give an example, in a condominium of 15 apartments, the expenditure not to be exceeded is 75,000 euros with a maximum deduction 27,000 euros. There is also the possibility of cumulating the Green Bonus on more than one property, allowing the same taxpayer to use the deduction for work on different properties.
Home Bonus: Changes for 2024
The landscape of tax benefits related to building renovation work presents different perspectives for those who wish to improve their residence. However, Prime Minister Giorgia Meloni has ruled out extending the 90 percent Superbonus with the next Budget Law.
From 2024, the Superbonus percentage will drop to 70%, decreasing further in 2025 to 65%. Barring intervention with the Budget Law, the benefit will be reserved exclusively for condominiums next year. For cottages, the discount will end at the end of 2023.
Among other incentives, the Architectural Barrier Bonus will continue to offer a 75 percent tax deduction. Sismabonus will also provide significant relief. Until Dec. 31, 2024, it will be possible to obtain a 50 percent deduction for earthquake-proofing expenses, with an expenditure ceiling of 96,000 euros per property unit.
Tax deduction percentages increase (70 percent or 80 percent) if seismic risk is reduced by 1 or 2 classes and if the work involves common parts of condominium buildings (80 percent or 85 percent). In this way, it is possible to obtain deductions similar to the Superbonus 2023.
The Ecobonus is a beneficial opportunity starting in 2024, with a 65 percent deduction, rising to 70 percent for condominium work. If specific energy efficiency targets are met, the deductions can be further increased (70 percent or 75 percent).
Other bonuses confirmed until 2024 include the Furniture Bonus, with a 50% deduction, and the Green Bonus at 36%. However, in 2023 the Green Home Bonus, which provides a 50 percent deduction on VAT for the purchase of A or B energy class properties, expires.
