NEWS
FACADE FACILITATION IN ITALY
The facilitation consists of a tax deduction, to be divided into 10 constant annual installments, equal to 90% of the expenses incurred in 2020 and 2021, and 60% of the expenses incurred in 2022, for interventions aimed at the recovery or restoration of the external facade of existing buildings located in certain areas.
The 2022 Budget Law, in fact, extended this deduction until 31 December 2022, with the rate reduced to 60 percent.
The interventions are eligible for the benefit:
- cleaning only or external painting on the opaque structures of the facade;
- ornaments and friezes on balconies, including those that have only been cleaned or painted;
- on the opaque vertical structures of the façade which have a thermal influence or which affect more than 10% of the plaster of the total gross dispersing surface of the building.
An important condition is that the properties are located in zones A and B (indicated in ministerial decree n. 1444/1968) or in zones similar to these on the basis of regional legislation and municipal building regulations.
Façade renovation works, not just external cleaning or painting, which affect from a thermal point of view or affect more than 10% of the plaster of the total gross dispersing surface of the building, must meet the "minimum requirements" set by the decree Mise 26 June 2015 ("National guidelines for the energy certification of buildings") and respect the thermal transmittance values.
For the other fulfilments, the provisions of the Mef decree n. 41/1998, i.e. the regulation on deductions for building renovation costs.
The alternatives to the deduction: transfer of credit or discount on the invoice
For the expenses incurred for the interventions attributable to the "bonus facades", the beneficiaries of the deduction can opt, as an alternative to the direct use of the deduction:
- for a contribution of the same amount, in the form of a discount on the consideration due to the supplier who carried out the interventions (the so-called invoice discount);
- for the transfer to other subjects (including credit institutions and other financial intermediaries) of a tax credit for an amount corresponding to the deduction due.
The law does not provide for the further assignment of the credit, without prejudice to the possibility of two further assignments only if made in favor of:
- banks and financial intermediaries registered in the register provided for in article 106 of the Consolidated law on banking and credit (indicated in legislative decree no. 385/1993)
- companies belonging to a banking group registered in the register referred to in article 64 of the aforementioned Consolidated Law
insurance undertakings authorized to operate in Italy pursuant to legislative decree no. 209/2005.
Banks or companies belonging to a banking group registered in the register referred to in article 64 of legislative decree no. 385/1993, can always carry out the transfer in favor of subjects other than consumers or users (i.e. different from natural persons who act for purposes unrelated to any entrepreneurial, commercial, craft or professional activity carried out), who have entered into an account account with the bank itself or with the parent bank, without the option of further assignment for the account holder.
