The development decree last June saw a big increase in personal income tax deduction on the building renovation of residential properties. Where does the personal income tax deduction? On recovery costs made on residential buildings, including rural ones. This is to counter the phenomenon of overbuilding: today there is always an ex-novo contribution, regardless of the old building structures. Plus there is one personal income tax deduction 55% for improvement energy of the building.
This is the law Decree n. 83/2012, published in the Ordinary Supplement no. 129 of the Official Gazette no. 147. The maximum allowable spending limit for each intervention is 96,000 euros. Without getting lost in quirky bureaucratic definitions, let's take a practical example.
Mr. Rossi owns a rural home. For the revaluation he incurs an expense of 70,000 euros, so 35,000 euros will be returned to him in ten annual installments of 3,500 euros. The return will be made by filling in the appropriate items in the Single or 730 form.
A further personal income tax deduction is foreseen for expenses incurred for interventions aimed at improving theenergy efficiency of an existing building. In this case, the maximum eligible is divided into three categories:
- 181,818 euros for the retraining energy "Global" of an existing building.
-109,090 euros if the works include the replacement of windows and fixtures, insulation of roofs and walls and the installation of solar panels for hot water.
- € 54,545 for the replacement of thermal plants with new condensing boilers, heat pumps and geothermal systems.
The personal income tax deductions for works on buildings it can be requested until June 2013.