Italy Revises Tax Deductions for Renovations and Energy Efficiency in 2025

Italy Revises Tax Deductions for Renovations and Energy Efficiency in 2025

Italy: Italy has implemented changes to its tax deduction regulations for 2025, affecting incentives such as the Renovation Bonus, Ecobonus, and Thermal Account. The Renovation Bonus has been extended until 2027, but with adjustments to deduction rates. In 2025, a 50% deduction will apply only to primary residences, while second homes will receive a 36% deduction. In 2026, these rates will be reduced to 36% and 30%, respectively, and from 2028, a fixed 30% deduction will apply with a reduced spending limit of EUR 48,000 (USD 52,000). Payments for eligible expenses must be made through specified transfers, with clear documentation of beneficiaries and recipients. Additionally, expenses related to replacing fossil fuel boilers will no longer be deductible in line with energy efficiency directives.

Restrictions have also been introduced for the Ecobonus, eliminating incentives for replacing air conditioning systems with fossil fuel-powered boilers, emphasising the transition to energy-efficient heat pumps. The Thermal Account remains under its current 2.0 version for 2025, with an updated Conto Termico 3.0 expected later in the year, potentially offering greater benefits for energy efficiency upgrades. These new regulations highlight the importance of sustainable building practices and require careful planning to ensure compliance with evolving energy efficiency policies.

Source: Info Impianti