Italy’s Superbonus tax credit: Key changes in 2023

No matter how long you’ve lived in Italy, you might still find it difficult to keep track of the bureaucratic basics — let alone the tax credits and bonuses that might benefit you. Just this year, a significant change was announced to the Superbonus, a green tax credit for renovation projects that make buildings more energy efficient.

The old Superbonus 110% has been popular, but pricey for the government to finance. And although the new changes are meant to ease the costs, the rules for the 2023 Superbonus are already proving tricky for many people to navigate. That’s why we put together this guide to the new Superbonus 90% and how it works. Let’s get started!

The 2023 Superbonus (also now known as Superbonus 90%) is a type of tax credit. It was originally introduced in 2020 under the name Ecobonus 110%.

Basically, this benefit allowed homeowners to deduct 110% of their home renovation costs from their taxes, as long as the renovations were aimed at making buildings greener and more sustainable. This includes projects to improve energy efficiency, install solar-power systems, develop e-mobility infrastructure, or make buildings more resistant to earthquakes. The 110% tax deduction was valid on expenses incurred up until June 30, 2022.

Now, with state expenses rising, the new government has announced — through the “Decreto Aiuti Quater” (Amendment to the Subsidies Decree) and the Budget Law 2023 — that it’s immediately scaling back the subsidy to 90%, and then will be gradually reducing it over the next few years (to 70% in 2024 and 65% in 2025). With the new 2023 Superbonus, the rules relating to credit transfers have also changed. 

In a nutshell, the main changes to the 2023 Superbonus are:

• The Superbonus deduction has been lowered from 110% to 90% as of January 1, 2023.
• Credit transfers no longer apply, except for work already in progress and with applications submitted by February 16, 2023.

New rules have also been established to be able to qualify for the Superbonus benefit, particularly for renovations to apartment buildings and detached houses. Let’s look at these more closely.

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Beyond the basic rate change, the new Superbonus 90% is different in three main categories.

One of the main changes with the 2023 Superbonus relates to work on residential detached buildings. Depending on your situation, there are two scenarios that you may qualify for:

• new Superbonus with a 90% deduction for the whole of 2023
• extension of the old Superbonus with a 110% deduction until March 31, 2023, as long as at least 30% of the work was completed by September 30, 2022

With the first scenario, there are also some new requirements. Specifically, to qualify for the 90% deduction for the whole of 2023, applicants must:

• own a property that is used as their main home
• have an income of less than €15,000 (as per a new calculation method)
• hold usage rights (e.g., bare ownership, usufruct, etc.)

To figure out your income using the new calculation, you need to add up the income of all the members of your household and then divide that total by the number of members, with each household member having a certain value depending on their role (spouse, child, etc.). 

Remember: If at least 30% of the total work was already completed by September 30, 2022, you’re eligible for the 110% deduction until the end of March, 2023. 

With the new 2023 Superbonus, there are several scenarios to qualify for the deduction on condominiums. Some of these scenarios allow for a 110% deduction; others, the 90% deduction. Let’s take a closer look.

First of all, the 110% deduction will be available to:

• Anyone who submitted the CILA-S (“Comunicazione Inizio Lavori Asseverata Superbonus” — sworn notice of the commencement of works under the Superbonus) by November 25, 2022 and whose renovation work isn’t finished yet
• Anyone renovating a condominium who has a shareholders’ resolution and declaration in lieu (filed by November 18, 2022), and who submitted a CILA-S by December 31, 2022
• Anyone renovating a condominium who has a shareholders’ resolution (filed between November 18 and 24, 2022) and a declaration in lieu, and who submitted a CILA-S by December 25, 2022
• Anyone doing demolition or reconstruction work, with applications submitted by December 31, 2022

All other projects that meet the other requirements to qualify for the Superbonus will be eligible for a 90% deduction. There’s also a distinction between primary works and secondary works.

Primary works include:

• thermal insulation of at least 25% of surfaces
• installing modern heat pumps
• upgrades for earthquake safety

These jobs may be combined with secondary works such as:

• installing more energy-efficient fixtures
• installing smart and home automation devices
• installing solar panels
• installing charging stations for battery-powered vehicles
• upgrading the whole building by at least two energy classes

Advance notice for credit transfers or invoice discounts used to be sent to the Tax Revenue Agency by filling in the required forms via your online account.

However, in the Italian government’s press release on February 16, 2023, urgent measures were introduced for the transfer of tax credits tied to these tax incentives. The measures were proposed by Prime Minister Giorgia Meloni and the Minister of Economy and Finance, Giancarlo Giorgetti.

The announcement stated that credit transfers for the tax benefit had had a negative effect, increasing the public debt. Aside from the specific exceptions for work already in progress, the press release declared that “it will no longer be possible to make use of the 'invoice discounts' or tax credit transfers.”

The first credit transfer for specific categories of expenses is to be removed. However, the option to deduct the corresponding amounts in the tax return will remain in place.

One thing is staying the same, at least: The application procedures for the 2023 Superbonus are virtually unchanged. All you have to do is submit your request via the official ENEA website and send the required documents within three months (90 days) of the actual end of the renovation work.

The rules for qualifying for the benefit may be complicated, but the application process itself is very straightforward:

• Go to the official ENEA website and register for access.
• Fill in the fields with the details of the beneficiary and the property.
• Fill in the APE (energy performance certificate) documents.
• Send signed copies of the affidavit and compliance certificate.

The documents will then be verified and, if approved, the deduction will be applied directly to your tax return.

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This article is based on publicly available information from official sources. While we work to ensure the highest possible degree of accuracy, N26 is not a government website, and the information in this article is subject to change. We encourage you to always consult the Official Government Gazette regarding current governmental regulations in Italy.