Cash in on the 110% Ecobonus for your home renovations

Planning to renovate your house? Now is a great time to take the plunge. The Italian government has confirmed that the 110% Superbonus for renovations (also known as the “Ecobonus”) is also valid for work that’s carried out from 2021 until June 30, 2022. Together with the many other bonuses included as part of the "Relaunch Decree" for 2021, this incentive offers various opportunities to those who want to make substantial improvements to their home.

So which kinds of renovations are eligible for tax deductions? We've taken a look at all the regulations and collected the essential guidelines on exactly how you can claim the 110% Ecobonus for your renovations.

The 2021 Superbonus—also known as the Ecobonus—offers a deduction rate that's been increased to 110% on certain expenses that are incurred up to June 30, 2022. These expenses must be related to energy efficiency or other anti-seismic improvements. This could mean, for instance, installing photovoltaic solar power systems and charging infrastructures in buildings meant for electric vehicles.

The Superbonus can be applied to work carried out by:

• Condos
• Individual people who privately own the property that’s being renovated, outside of their own business or profession activity
• Individual people who own (or co-own) buildings consisting of 2 to 4 distinctly stacked property units, as long as this does not make up their primary business 
• The Autonomous Institutes of Popular Homes (IACP)
• Housing cooperatives with undivided ownership
• Non-profit organizations
• Volunteer programs or programs to promote social welfare
• Amateur sports associations

While most organizations or individuals need to have incurred all their renovation expenses by June 30, 2022, the deadline for condos and communal parts of buildings with 2 to 4 property units extends until December 31, 2022. However, in order to take advantage of this extension, at least 60% of the total work planned must be carried out by June 30, 2022.

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The deduction is reimbursed at 110% in two ways:

• in 5 annual installments of the same amount for expenses incurred by December 31, 2021
• in 4 annual installments of the same amount for the expenses incurred in 2022.

You can receive the deduction in installments annually, choose to obtain an advance contribution in the form of a discount (on the invoice) from the suppliers of the goods or services, or even request the transfer of the credit corresponding to your deduction in 2021 or 2022.

According to the regulations of the "Relaunch Decree", the deduction applies to specific improvements (defined as "main" or "leading") to the following areas:

• thermal insulation of the building's external surfaces
• replacement of winter air conditioning systems
• anti-seismic interventions

Other works, called "leading", can also benefit from the Ecobonus if they are performed jointly with at least one of the thermal insulation or replacement of the winter air conditioning systems mentioned above. In this case, these are works related to:

• energy efficiency
• removal of architectural barriers
• installation of infrastructure for charging electric vehicles in buildings.

Additional improvements may be eligible for the Ecobonus if performed as part of at least one thermal insulation work or replacement of the winter air conditioning or anti-seismic systems, for example:

• installation of photovoltaic solar systems connected to the electricity grid
• installation, even at a later date, of storage systems integrated in subsidized solar photovoltaic systems.

Finally, the functional expenses for the execution of the intervention, such as the purchase of materials, appraisals, taxes and VAT, are included in the incentive, but condominium administration costs are excluded.

To access the bonus:

• The building, independent or part of a condo, must not be newly built
• The energy classification of the building or condo must be raised by at least two classes. This improvement must be demonstrated with an Energy Performance Certificate (A.P.E.) before and after the redevelopment, by means of a sworn statement issued by a qualified technician.
• The payment must be made by transfer (bank or postal) which must include the reason for the payment, the tax code of the beneficiary of the deduction, and the VAT number of the recipient of the transfer. Credit institutions and Poste Italiane often make special bank transfer forms available for payments for building renovations and Ecobonus.

As for works to the thermal insulation of the building's external surfaces, the maximum cost to access the deduction is:

• €40,000, multiplied by the number of property units that make up the building for buildings consisting of 2 to 8 units
• €30,000, multiplied by the number of property units if the building has more than 8 residential units
• €50,000 for single-family buildings or condo apartments but with independent access to the outside.

For air conditioning systems, the maximum cost is:

• €20,000 multiplied by the number of property units that make up the building, for buildings consisting of 2–8 units (centralized systems)
• €15,000 multiplied by the number of property units, if the building has more than 8 residential units (centralized systems)
• €30,000 for single-family buildings or condo apartments but with independent access to the outside

For the installation of photovoltaic solar power systems connected to the electricity grid, there is a maximum deductible expense of €48,000.

To get a clearer picture of the spending limits for accessing the Ecobonus, take a look at the updated guide published on the 110% Superbonus website and the summary tables of the Revenue Agency (available in Italian). 

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When it comes to planning for your home renovations, N26 has the financial tools you need to get organized. See all your monthly spending at a glance with Statistics, or easily budget for new projects with N26 Spaces sub-accounts. Find the account that's right for you and sign up in just a few minutes, right from your smartphone.

Want to learn more about the costs to consider for your home improvement projects? Take a look at our guide to renovation costs.