Tax regulation mechanism (Tax detraction)
Updated: 07.02.2019
Author: Jasmin Schwarz
This scheme allows for a 65% tax deduction (“detrazione”) for expenses related to energy efficiency measures including the installation of RES-H technologies, such as Heat Pums or solar thermal collectors (Art. 14 DL 4/6/2013 Art. 1, c. 344 – 347, l. 296/06). The installation of heat generators fueled by combustible biomass is is deducted by 50% since 2017 (-Art. 3, par. 4 L 205/17). In the case of private individuals, this disposition is valid for works undertaken up to 31 December 2018 and in the case of common buildings the disposition is valid up to 31 December 2021 (Art. 1, c. 48, L 220/10 in conjunction with Art. 14 DL 4/6/2013 and with Art. 1.2, par.a.1 and 2 L 232/16). For energetic requalification works aimed at improving the winter and summer energy performance of common buildings, the tax deduction will amount to 70% or 75% and works can be undertaken between 1st January 2017 and 31 December 2021 (Art. 1.2, par. a.3 L 232/16).
Eligible technologies
Biomass, Aerothermal, geothermal and solar thermal are eligible.
| Aerothermal energy | Eligible (High Efficiency Heat Pumps) (Art. 1, c. 347, l. 296/06 in conjunction with Art. 1, c. 286, l. 244/07). |
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| Geothermal energy | Eligible (Low Enthalpy Geothermal Plants) (Art. 1, c. 347, l. 296/06 in conjunction with Art. 1, c. 286, l. 244/07). |
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| Aerothermal energy | Eligible if aimed to the production of hot water for domestic or industrial use or for producing hot water for swimming pools, spot facilities, clinics, schools and universities (Art. 1, c. 346, l. 296/06). |
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| Biomass | Eligible (heat generators fueled by combustible biomass) (-Art. 3, par.4 L 205/17). |
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Amount
Aerothermal: € 30,000, to be distributed over three years with three quotas of equal amount (Art. 1, c. 347, l. 296/06 in conjunction with Art. 1, c. 286, l. 244/07).
Geothermal: € 30,000, to be distributed over three years with three quotas of equal amount (Art. 1, c. 347, l. 296/06 in conjunction with Art. 1, c. 286, l. 244/07).
Solar Thermal plants: € 60,000, to be distributed over ten years with ten quotas of equal amount (Art. 1, c. 346, l. 296/06 in conjunction with Art. 1, c. 48, l. 220/10).
In the case of energetic requalification works aimed at improving the winter and summer energy performance of common buildings the maximum amount is € 40,000, to be distributed over ten years with ten quotas of equal amount (Art. 1.2-quarter L 232/16).
Addressees
Entitled party: Any party installing eligible plants.
Obligated party: The State.
Procedure
Process flow | The tax deduction (“detrazione”) is conceded if: - A certified technician checks the plants and declares their conformity with the technical requirements (Art. 1, c. 348, l. 296/06)
- The plant operator provides an energetic certificate for the building in accordance with legislative decree 192 of 2005, or a statement by a certified technician. This does not apply to solar thermal plants. (Art. 1, c. 348, l. 296/06 in conjunction with Art. 1, c. 24, l. c, l. 244/07).
Plant operators, after obtaining such documents, have to transmit them to the National Agency for New Technologies, Energy and Sustainable Development (ENEA). |
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Competent authority | The tax agency (“Agenzia delle Entrate”). |
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Distribution of costs
| State | The State bears the cost, in terms of lower income from taxes. |
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Italy
