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Superbonus: application doubts and perspectives

published on 16 September 2020 | reading time approx. 6 minute

This article aims at representing the regulation of the so-called "Superbonus", a measure introduced to improve the energy and seismic performance of the existing building stock and to contribute to the revitalization of the real estate sector. The reference regulation is Law no. 77 of July 17, 2020, converting Legislative Decree no. 34 (the so-called "Relaunch" Decree), published on July 18, 2020. It should also be noted that the Agenzia delle Entrate – the Italian public fiscal agency - has published the Guide of July 2020 for the so-called Superbonus 110 per cent in which many practical cases are resolved

Superbonus: introduction and description

In the context of urgent measures in the field of health, support for work and the economy, as well as social policies related to the COVID-19 epidemiological emergency, the Relaunch Decree increased to 110 per cent the rate of deduction of expenses incurred from July 1, 2020 to December 31, 2021. This measure has been introduced with reference to specific interventions in the field of energy efficiency, seismic risk reduction, installation of photovoltaic systems and infrastructure for recharging electric vehicles in buildings.

The new regulations are to be intended in addition to those already in forces, which regulate the deductions from 50 per cent to 85 per cent of the expenses due for building heritage recovery and energy requalification of buildings (so-called Ecobonus, art. 14 of LD 63/2013).

Another important measure is represented by the generalized possibility of opting, as an alternative to the direct use of the deduction, for an advance contribution in the form of a discount from the suppliers of goods or services (so-called “invoice discount”) or for the assignment of the credit corresponding to the deduction due, according to Law.

The Superbonus is, under certain conditions, due for expenses incurred for work carried out on common parts of buildings, on functionally independent building units with one or more accesses from the outside, located inside multi-family buildings, as well as on single units.

In particular, the so-called "driving interventions" can be classified in these main categories:

Thermal insulation
Replacement of existing winter air conditioning systems with centralized heating/cooling/supply of domestic hot water systems on the common parts of buildings, or with heating/cooling/supply of domestic hot water systems on single-family buildings or on building units located inside multi-family buildings that are functionally independent and have one or more independent accesses from the outside
Anti-seismic interventions (so called seismic interventions pursuant to paragraphs 1-bis to 1-septies of article 16 of LD 63/2013)

The Superbonus is also available for other types of interventions (so-called towed interventions), that follow, if they are carried out together with at least one of the “leading interventions” as listed above, and they are:

Energy efficiency interventions;
Installation of infrastructure for charging of electric vehicles.

Further the Superbonus is also granted for the following additional types of interventions (so-called towed innterventions) provided that they are carried out in conjunction with at least one of the thermal insulation or replacement of winter air conditioning systems or seismic risk reduction interventions, as listed above, and they are:

Installation of grid-connected solar photovoltaic systems
Contextual or subsequent installation of storage systems

It should be noted that the Superbonus is not due for interventions carried out on residential units belonging to Italian land register categories A1 (stately homes), A8 (villas), and A9 (castles).

The recipients of the favourable tax regime are: condominiums, individuals outside the exercise of business, arts and professions, anonymous social housing institutes, undivided-owned housing cooperatives, non-profit social organizations, associations and amateur sports clubs (for the latter limited to work on buildings or parts of buildings used as dressing rooms).

In particular, the deduction is due to those who own or hold the property where the interventions have been carried out, on the basis of a eligible title, at the time the work was started or at the time the expenses were incurred, if prior to the aforesaid start of work.

Business or professional income holders are included among the beneficiaries in the sole hypothesis of participation in the costs for driving interventions carried out by the condominium on the common parts.

The deduction of 110 per cent shall be divided among the entitled parties in five equal annual instalments.

For the application of the correct rate, reference must be made to the date of actual payment and the date of completion of the service.

It should be noted that the annual portion of the deduction, which is not included in the gross tax of each year, cannot be used in subsequent tax periods, nor be the subject of a refund request.

According to current legislation, the expenses covered by Superbonus must be incurred between July 1, 2020 and December, 31 2021.

Transfer of the deduction and discount to the invoice

Pursuant to art. 121 of the Relaunch Decree, the parties to whom the relief is granted may opt instead of the direct use of the super deduction alternatively for:

a) Contribution in the form of a discount on the amount due

b) For the transfer of the tax credit corresponding to the deduction due, in favor of suppliers, other subjects (individuals, including self-employed or business activities, companies and entities), credit institutions and financial intermediaries.

In addition to the obligations originally provided for ordinary deductions (ecobonus and seismic deductions), such as the payment by bank transfer of the expenses for the execution of the interventions by parties not operating as a company, with regard to Superbonus 110 per cent, for the purpose of exercising the option, , for the discount or sale, the taxpayer must obtain the compliance certification (which can be issued by chartered accountants for example) and the technical certification related to energy efficiency and seismic risk reduction interventions.

It should be noted that it will be possible to present the option notice for the discount on the consideration or the assignment of the credit, instead of the direct use of the deduction from October 15, 2020; moreover, for assignees and suppliers the first use of the corresponding tax credits cannot take place before January 1, 2021 (i.e. not before the year following the year in which the expenses are incurred).

Peculiarities

The Superbonus is guaranteed only if the improvement of the energy class of the building is certified (at least two classes).

If a building is in class A3, if the improvement of two energy classes can’t be achieved, the achievement of energy class A4 will be sufficient.

Suppliers who apply the invoice discount will be able to use the F24 offsetting tax credit directly in 5 annual instalments, or will be able to transfer it to any other entity (companies, banks, private citizens, etc...).

According to the guide prepared by the Agenzia delle Entrate in July 2020, it appears that the tax credit can be transferred to any person without limit. According to this document, the transferee who has purchased the tax credit in good faith, does not lose the right to use it in the event that during the subsequent checks by ENEA (the Italian National Agency for New Technologies, Energy and Sustainable Economic Development) or the Agenzia delle Entrate it will be discovered that the taxpayer was not entitled to the deduction.

Insulation expenses are included in the Superbonus provided that the roof is a separating element between the heated volume and the exterior, that also together with other insulation works carried out on the opaque envelope affects more than 25% of the total gross dispersing surface and that the works lead to the improvement of two energy classes of the building (also together with other energy efficiency works or through the installation of photovoltaic systems and storage systems).

As regards the specific case of the replacement of existing winter air conditioning systems, in order to access the Superbonus regime it is sufficient to replace the heat generator (not all pipes and terminals must be replaced).

If the replacement of windows including frames, which have the thermal transmittance characteristics required by law, is carried out in conjunction with a so-called "driving" intervention and improvement of at least two energy classes of the building is achieved, access to the Superbonus regime will also be possible in this case.

If a condominium carries out one of the driving interventions (coat or boiler), it results possible also to benefit from the Superbonus for the installation of a photovoltaic system on a single building unit.

For interventions on the common parts of the buildings, each condominium will benefit from the deduction calculated on the expenses charged because of the millesimal subdivision of the buildings, or according to the criteria identified by the condominium assembly.

The Superbonus also includes the interventions for demolition and reconstruction of buildings, if the volume of the building remains the same.

Professionals who issue certificates and affidavits must have a third party liability insurance policy with a limit of not less than 500 thousand euros, and in any case commensurate with the interventions to be certified.

Perspectives

While waiting for the specific implementing decrees, it should be noted that the Superbonus represents a further useful tool for the recovery of the heritage and the efficiency of the existing building stock available to taxpayers.

It should be pointed out that the subsidy scheme could also be extended to subsequent years with respect to those prescribed to date.

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