Renovating you house can be a tough decision, not only because it can lead to stressful situations, but also because the investment can be heavy as it may cost a lot. The Home Renovation Bonus allows you to conduct the procedure of rescue of the existing property with a remarkable saving. In Italy, following the budget law of 2022, this Bonus was renewed for three years, from 2022 to 2024.
What is the Home Renovation Bonus 50% and how does it work?
The Renovation Bonus 50% establishes an IRPEF tax relief for whoever makes upgrading interventions of their existent building property. It is a measure valid for houses only and not, for example, for industrial warehouses. This benefit was introduced from one side to incentivise the recovery of existing buildings instead of the building of new facilities, and from the other to limit the illegal work, widely common in the construction industry.
The discount is applied to the taxes the taxpayer owes for IRPEF in ten annual payments of the same amount. The deduction is the 50% of the expenditures, with a limit of spending up to 96.000€.
A particularly interesting measure as, until the renovation bonus was issued the IRPEF deduction of the 36% of the expenditures was still standing, for a maximum of 48.000€ for each property.
Being a non-convenient solution for those who have a low income, the State introduced – thanks to the so called “Relaunch Decree” (Decreto Rilancio) – the possibility of benefit through the assignment of claim or the invoice discount. Through the assignment of claim it is possible to cede the obtained credit to a third subject, which can be, for example, the same enterprise taking care of the works. In the case of the invoice discount, instead, it will be the company itself to make the discount to then being refunded.
The interventions that are included in the Home Renovation Bonus 50%
According to the consolidated text for the construction industry, the building renovation includes the interventions that allow to transform the buildings through a system of construction projects that can lead to a total or partial modification of it.
These measures can be:
- Ordinary construction renovation. It comprehends the activities which permit to maintain the efficiency of the unit, frames and systems, realised from scratch. The aim is conservative, and the structure is not touched.
- Extraordinary construction renovation. This type of renovation work is more radical, as it modifies structural parts of the house. It changes the building’s features.
Who is eligible for the Bonus?
This is the list of those who can have access to the renovation bonus:
- Owner/Bare owner
- Relative who lives with the owner and is part of the civil union
- Separated spouse which results to be the house recipient
- Live-in companion more uxorio
- Title holder of real rights of enjoyment
- Tenant / bailee
- Individual entrepreneur
- Cooperative or simple partnership company
Something more
The Budget Law 2022 includes news. It puts, in fact, the declaration of price adequacy together with the obligation of compliance certificate. Therefore, the possibilities of assignment of claim or invoice discount have to be stated by the professionals that arranged the obligation of compliance certificate, making the basic documents check starting from the necessary requirements to access the Bonus 50%.