This January started in the best way for the Italian construction industry, with the news of the approval of two state incentives, the Ecobonus and the new. These two initiatives aim to relaunch the construction sector of the Bel Paese in an eco-friendly way.

However, the first news raised some doubts to the operators in the sector. For this reason, through the normative 2/E/2020, the Italian tax authorities have resolved a series of disputes concerning some issues.

The first directives of the Facades Bonus that were given with the Budget Law 2020 led us to think that the bonus was limited to Irpef taxpayers and only residential properties. The latest clarifications have instead explained that the Bonus is a deduction for both Irpef and Ires. On the other hand, individuals and businesses with VAT numbers that apply the flat-rate regime are excluded.

An important clarification is also what has been done about the type of interventions benefiting from the bonus facades: the circular explains that only existing buildings within zones A and B can access the incentives, with the aim of redeveloping the areas existing urban areas. For this reason, all interventions carried out during the construction phase of the property, as well as those that involve demolition and reconstruction that can be classified as building renovation, will not be entitled to the bonus in question.

The deduction is expected for:

- cleaning, painting, recovery and restoration of facades, including balconies, ornaments or friezes;

- gli interventi di coibentazione sulle strutture opache della facciata o che interessino oltre il 10% dell'intonaco della superficie disperdente lorda complessiva dell'edificio;

- insulation works on the opaque structures of the facade or which affect more than 10% of the surface plaster;

- the costs incurred for the purchase of materials and for the planning of interventions;

- the costs strictly related to the implementation of the interventions, such as the costs related to the installation of scaffolding.

The deduction is not due:

- for interventions carried out on the internal facades of the building not visible from the street;

- for interventions on surfaces bordering on small areas, courtyard, courtyards and internal spaces;

- for the replacement of windows, fixtures, grates, doors and gates.

Bonus facades, different deadlines for individuals and businesses

The IRPEF and IRES deduction refers to all expenses incurred in 2020, for subjects with a tax period that does not coincide with the calendar year, in the tax period in progress on December 31, 2020.

The circular explains that for individuals, including traders in the arts and professions, and for non-commercial entities, the cash criterion applies, therefore the date of actual payment is valid. For example, if an intervention started in July 2019 and payments were made in both 2019 and 2020, only the expenses incurred in 2020 can be deducted.

For individual companies, companies and commercial entities, the competence criterion is applied, therefore the date on which the expense is recorded in the company's accounting is considered. This means that expenses to be attributed to the tax period in progress on 31 December 2020 can be deducted, even if incurred in 2019 and regardless of the start date of the interventions.

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