The principal incentive in Italy for encouraging more efficient use of energy in buildings has consisted of tax relief on various energy-saving measures, through which households and companies may deduct from their income taxes (generally over a period of 10 years from when the costs are incurred) a portion of the costs incurred to increase the energy efficiency of existing buildings. These energy efficiency measures include (i) reducing energy consumption for heating the building, (ii) improving the building’s thermal performance (by improving insulation in flooring or windows, including frames) and (iii) installing solar panels.

Among these incentives, the “Superbonus” and the “Ecobonus” aim to improve the energy efficiency of existing buildings.

The Superbonus consists of fixed tax deductions (70% for 2024) of the expenses incurred for the implementation of specific projects aimed at, among other things, improving the thermal insulation of buildings, replacing air-conditioning systems, installing photovoltaic panels and carrying out energy efficiency measures. The Superbonus is open to individuals, outside the exercise of business, arts and professions, both resident and nonresident in the state, who incur the expenses for implementing the subsidized interventions.

The Ecobonus incentive was first introduced in 2007 and, similarly to the Superbonus, aims at incentivizing energy efficiency projects for private buildings through tax deductions that should be divided in 10 annual installments of different value.

Resident and nonresident taxpayers (including professionals, companies, and public and private entities not engaging in a commercial activity) can benefit from the Ecobonus with reference to existing buildings and for specific energy efficiency projects, including, among other things, replacing windows, installing solar shading, and upgrading heating and air-conditioning systems.

Both the Superbonus and the Ecobonus assign a maximum eligible expenditure for each type of intervention, and the sum of the maximum eligible expenditure cannot exceed the maximum incentive payable.

The above incentives have been confirmed until 31 December 2024. Further reconfirmations are more than likely, considering the European target of net-zero emissions by 2050, which requires — among other things — the decarbonization of the real estate sector.