Home improvement cash back schemes

5 Tips to making eco-friendly upgrades to your home with the government incentive schemes...

Now is definitely the time to buy to renovate, upgrade for sale or make personal home improvements!  The government incentives on offer, also applicable to international homeowners, are a range of cash back schemes with refunds from 50% up to 110%.
Until 2019, these incentives were only for the benefit of Italian residents because the "discount" was deducted from income taxes in 10 annual instalments.
In 2020, a new system was introduced whereby the accumulated "credit" / "discount" can be sold to banks (or insurance companies), who will reimburse the value of the credit, less a fee. This change means that even non-resident overseas homeowners - who do not pay income taxes in Italy - can take advantage of the schemes.
1) What generates the credit? Eco-friendly renovation works
2) What discount percentages are on offer? From 50% to 110% of the amount spent, with ceilings of expenditure for individual interventions.
Cortona International has focused this post on the 50% refund scheme for renovations and the 65% refund for systems upgrades.
These two schemes are simpler to apply, have fewer time limitations and require standard procedures and protocols which most surveyors and architects are acquainted with (as opposed to the 110% eco-bonus which is much more complicated and has restrictive timelines, as yet not extended).
3) What is included in the 50% bonus? Bathroom makeovers, floor makeovers, door and window replacements, screeds, plastering, electrical system makeovers and more. The spending limit for these interventions is equal to Euro 96,000 per single unit.
4) What is included in the 65% bonus? Installation of condensing boilers, replacement of heating systems, purchase and installation of solar thermal panels, insulation of walls and more. The spending limit for these interventions is equal to Euro 100,000 per single unit.
5) How does the refund work? The first step is to make advanced payment for all of the works undertaken. If you do this on-line, ensure to pay with the simple form called a bonifico ‘parlante’ which is directly associated with renovation works and the applicable deductions in place. Alternatively, one can make payment directly in the bank, but again specifying that payments are being made for renovation works.
The second step is to initiate the ‘selling’ of the accumulated credits to the bank (or an insurance company). No doubt there will be many forms to fill in, but the procedure is straight forward.
To date (16th March 2021), the bank will reimburse you 80% of the accrued credits. For example: if you have incurred a cost of Euro 50,000 and have applied for the 50% restoration bonus, you will be reimbursed 80% of that 50% which would be equal to E.20,000; a saving of E.20,000 on a total expenditure of E.50,000.
Disclaimer: this post is intended as only a rough outline as to what incentives/deductions are currently available. We invite you to contact a surveyor, lawyer, architect or accountant for professional advice in order to obtain a complete and accurate account of all the deduction possibilities present and of the executive methods to best utilize them.
Team, 15/03/2021 10:04:40
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