2018 Home Bonus: tax deductions and innovations

The Italian 2018 Budget Law has introduced important fiscal innovations on home bonuses, ranging from the extension of the renovation and furniture bonus to the new Eco Bonus deduction rates for works started on January, 1st, 2018. Furthermore, the text of the 2018 Budget Law confirms the introduction of the Green Bonus, a 36% deduction up to € 5,000 of the costs incurred in taking care of private gardens and terraces.   

Renovation Bonus
All house interventions made between January, 1st, 2018 and December, 31st, 2018 will benefit from an income tax deduction for a sum equivalent to 50% of the costs incurred and within the limit of € 96,000. This bonus includes:  

  • works of routine maintenance, exceptional maintenance, renovation, conservative restoration and building restructuring made on common parts of residential buildings, i.e. apartment blocks;
  • works of exceptional maintenance, renovation, conservative restoration and building restructuring made on single residential buildings of any cadastral category, also rural buildings and fittings.

  Some examples of routine maintenance works covered by the Renovation Bonus are:

  • installation of lifts and emergency staircases
  • construction and improvement of toilet facilities
  • replacement of fixtures, doors, windows or shutters with rolling shutters, change of material or type of fixture
  • restoration of stairs and flights
  • energy-saving interventions
  • fencing of a private area
  • construction of internal stairs.

Energy-saving Eco Bonus 
The Eco Bonus is one of the most successful fiscal aids for house interventions: this bonus consists in a tax deduction of 65% on the costs incurred. Anyway, the 2018 extension has introduced important innovations concerning the percentage of reduction for some types of admitted charges. In fact, the income tax reduction foreseen by the Eco Bonus will no more be equivalent to 65% for all the works performed, and it will pass to 50% for the following works:

  • replacement and installation of fixtures;
  • replacement and installation of winter air conditioning systems with condensing and biomass boilers;
  • installation of solar shadings.

Bonus for new furniture
The recently-modified Budget Law has confirmed for the year 2018 the possibility of benefiting from a furniture bonus. The tax deduction on the costs incurred will be of 50% and within the limit of € 10,000. You can benefit from it if you perform renovation works or you purchase furniture or large household appliances at least belonging to A+ Class. The fiscal deduction can be asked for through the income tax return and it will be subdivided into ten instalments of a same sum.
Green Bonus Always talking about the fiscal aids introduced for preserving the environment, starting from January, 1st, 2018, a new bonus is foreseen: the Green Bonus, i.e. a tax deduction equivalent to 36% for a maximum sum of € 5,000 for the maintenance of private green areas.

Eco Bonus for apartment blocks and Earthquake Bonus As already foreseen by the previous regulation, the fiscal deductions for energy requalification works in common parts of apartment blocks and the earthquake bonus will also be present for the year 2018 and up to December, 31st, 2021. The Eco Bonus for apartment blocks – for which recent instructions and innovations show the possibility of ceding the credit of insolvent owners to banks and credit institutions – will even reach 75%. The earthquake bonus for works performed between January, 1st, 2017 and December, 31st, 2021 will be equivalent to 70% or to 80% in case of reduction of two risk classes. The fiscal deduction will reach 85% for interventions performed in apartment blocks.

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