Index
If you're thinking of renovating your home, this could be the ideal year to do so. With the 2022 Budget Law published last December, several tax deductions have been extended that incentivize those who wish to start construction work in their place of residence.
Let's see what the home renovation bonuses consist of, specifically. According to the Revenue Agency, taxpayers are entitled to deduct a significant portion of the expenses related to work incurred on residential buildings from their income tax. 50% of the expenses incurred between June 26, 2012, and December 31, 2024, can be deducted from personal income tax (IRPEF) up to a maximum of €96,000 for each real estate unit.
To take advantage of the incentives for renovating a first or second home, it is necessary to meet some essential requirements. Furthermore, it is important to ensure that the expenses fall within the categories described in the latest financial plan. In this guide we will see:
- who is entitled to the 2024 home renovation bonus;
- what expenses are permitted by law;
- how to proceed to obtain home renovation benefits;
- what is the ecobonus and how to obtain it.
2024 home renovation benefits: who can obtain the bonus
As we have seen, the home renovation bonus is available to taxpayers who decide to start modernizing their home or the common areas of residential buildings.
The tax incentive, therefore, can be requested by anyone who pays taxes on their income. There is no difference between a first and second home and it is not necessary for the owner of the property to apply for the bonus. In fact, anyone who participates in the renovation costs can benefit from the incentive.
The following can take advantage of the 2024 home renovation incentive:
- owners, usufructuaries, bare owners and holders of enjoyment rights;
- tenants or borrowers;
- members of divided or individual cooperatives
- companies and individual entrepreneurs for buildings that are not part of their capital goods.
It is also possible to deduct from taxes the expenses related to work carried out independently, calculating in the bonus all the costs related to the purchase of the necessary materials.
What expenses are eligible for the home renovation bonus?
The home renovation bonus can only be obtained for interventions permitted by the latest Budget Law. The list of works that allow access to the benefit is long, but to obtain the 50% deduction from IRPEF it is best to make sure that the planned works are included among those described.
Here are the categories of construction work valid for obtaining the 2024 home renovation bonus:
- all maintenance, restoration or renovation work carried out on individual properties or common areas of residential buildings;
- the repair of buildings damaged by natural disasters;
- interventions regarding parking spaces;
- the improvement of accessibility through the removal of architectural barriers;
- the installation of security devices such as gates, grates, safes or armoured doors;
- work aimed at reducing noise pollution;
- All works aimed at reducing energy consumption;
- the implementation of anti-seismic measures;
- interventions aimed at eliminating or reducing the risk of domestic accidents;
- the repair of plumbing or electrical systems;
- the installation of gas leak detection systems;
- the installation of safety glass;
- the installation of handrails.
Another piece of good news is that in addition to the expenses directly related to the renovation work, it is also possible to include the costs related to administration and drafting the renovation project. Furthermore, the deductible expense includes VAT.
What è What is the procedure for obtaining the home renovation bonus?
To take advantage of the tax relief, it is necessary to follow a specific procedure, which begins with notification by registered mail to the Local Health Authority of the start of the work in 2019.
All costs relating to renovation work must be paid by bank or postal transfer, which must include both the reason for the payment and the tax code of the person who will benefit from the bonus.
Finally, to obtain the deduction, it is necessary to include the cadastral data of the building in question in the tax return. The Revenue Agency also recommends keeping a series of documents that may be requested during the assessment phases. Specifically:
- any administrative authorizations to begin the works, obtained from the designated bodies, or a substitute declaration indicating the start date of the works;
- the application for registration of the property;
- IMU payment receipts;
- documents relating to the distribution of expenses, if the works were carried out in common areas of a residential building;
- a copy of the notification of commencement of works sent to the ASL;
- bank transfers and payment receipts relating to the interventions.
If the work carried out includes interventions aimed at energy saving, you will also have to communicate to Enea, the National Agency for Energy Efficiency, the information relating to the renovation within 90 days of its completion, in order to obtain the ecobonus described below.
Incentives for energy saving at home: the ecobonus
Among the incentives for 2022, the new budget law has confirmed the extension of the 65% ecobonus, which will be in force until the end of 2024. This incentive covers all modernization interventions that reduce the environmental impact of the home through energy savings. By carrying out work that improves the energy efficiency of your residence, in fact, you are entitled to a deduction from IRPEF or IRES, which varies depending on the type of operation carried out.
Tax breaks for the energy requalification of the home have existed for some years and concern interventions such as:
- global requalification of the building
- the installation of photovoltaic systems;
- thermal insulation of the home;
- work aimed at reducing energy consumption for heating;
- the installation of devices for remote control of heating systems;
- the replacement of existing heating systems with hybrid systems
As explained in the guide drawn up by the Revenue Agency, for most of these works the renovation bonus is equal to 65% of the costs, to be divided into 10 equal annual installments. The 50% relief instead concerns:
- the installation of solar screens
- the replacement of windows and frames
- the replacement of existing heating systems with class A condensing boilers;
- the installation of biomass boilers.
To request the ecobonus, it is necessary to present a series of documents that demonstrate compliance with the technical requirements established by law. In particular, certification from a qualified technician is required to guarantee compliance. of the interventions, an information sheet describing the operations carried out and, in some cases, the energy performance certificate (APE) containing data on the building's energy consumption.
The documentation must be sent to ENEA within 90 days of the conclusion of the works together with a copy of the bank transfer paid to the company that carried out the work and the tax code to which the deduction will be applied.
Home renovation bonus: an opportunity not to be missed for both living and selling
The opportunity to renovate your home while reducing costs by 50% is an excellent incentive both for those who plan to live in the same place long-term and for those who intend to fix up a house before selling it.
At Casavo we know well how a renovated and energy-efficient home guarantees a significant increase in value. Evaluating houses, in fact, is what we do every day. If you're looking for an expert eye to help you understand the selling price of your home quickly, accurately, and impartially, we'll be happy to help you. We're always ready to get to work for you, even when it's not a renovation.