Renovation bonus, good but not great: here’s what will change with next year’s budget.
The 2025 budget extends the renovation bonus for first homes by one year, but the conditions approved by the Government risk negatively influencing the full achievement of the community objectives relating to the green homes directive, as well as raising strong concerns in the construction sector, which, according to Federcostruzioni data, recorded a slight increase of 3% in 2023.
To recap
– 50% renovation bonus, extended under the same conditions as 2024, with a spending limit of 96 thousand euros for first homes
– 36% deduction from 2025 to 2027 for second homes
– 30% deduction from 2028 to 2033 for second homes
The extension of the renovation bonus in detail
With the new Budget Law, the 50% renovation bonus has also been extended for 2025, contrary to the forecast which envisaged a 36% deduction for 2025 with a spending ceiling of 48 thousand euros per property unit.
Rates reduced
Compared to the previous measure, in 2025 the rate remains at 50% for first homes, with a spending ceiling raised to 96 thousand euros. However, starting from 2026, this rate will be reduced to 36%, a level that risks not being sufficient and could lead to a decrease in redevelopment interventions.
Failure to distinguish between interventions
A second critical aspect is the failure to distinguish between high quality interventions, such as energy and anti-seismic improvements, and interventions with little added value. This equation risks not adequately satisfying the needs of families and businesses, compromising the possibilities of improving comfort, safety and energy saving.
Inconsistency with the PNIEC
Finally, the third problematic point concerns the inconsistency with the objectives of the National Integrated Energy and Climate Plan (PNIEC), which provides specific actions to achieve the objectives of decarbonisation and energy security. The absence of adequate alternative legislative measures risks causing Italy to lose ground in the sector of energy efficiency and building resilience.
Many other nations, which have adopted measures for energy efficiency and renewables in buildings, have given themselves horizons of at least ten years. Germany, France, Holland and Sweden have developed long-lasting incentives, allowing companies in the construction sector to structure themselves in a coherent and effective way, encouraging solid development of the market. With this short-sighted choice, Italy risks abandoning a strategic sector for combating climate change, which offers great potential and provides work for many small and medium-sized businesses.
says Attilio Piattelli, president of the FREE Coordination, an association that promotes the development of renewables and energy efficiency. To overcome the critical issues of tax deductions as envisaged by the current Government, the Coordination proposes seven solutions:
1. Maintain the 65% rate for energy requalification interventions, extending it to worthy interventions in terms of decarbonization until 2030.
2. Introduce a rate of 75% for renovations that combine energy requalification, seismic and resistance to extreme events.
3. Do not foresee benefits for the use of gas boilers.
4. Provide for the use of the Thermal Account also for the energy requalification of residential buildings, with predefined annual spending commitments, also supporting interventions for incompetent taxpayers.
5. Evaluate the possibility of accumulating tax deductions with the Thermal Account, extending it as indicated in the previous point.
6. Facilitate the use of Energy Performance Contracts or Energy Service Contracts, allowing ESCOs to directly access support measures, both fiscal and capital account, similar to the Thermal Account for the Public Administration.
7. Review the National Fund for Energy Efficiency, integrating it with other measures to facilitate access to financing, allowing the intervention of ESCOs and companies involved in the redevelopment of buildings also through tax deductions.
The association is convinced that it can implement these proposals without excessively burdening public finances, while still respecting the Government’s objectives towards the European Union.
