Policy status:In Force
Date Effective:2007
Policy Type:Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Economic Instruments>Fiscal/financial incentives>Tax relief
Policy Target:Multiple RE Sources>Power
Policy Sector:Electricity
Agency:Italian Revenue Agency
Legal References:Law 296/2007 and following Budget Laws (last L.190/2014)

A tax credit to favour the installation of RES plants was introduced at first in 2008 to subtract from the IRPEF (income tax of physical persons) or IRES (income tax on companies revenues) part of the costs incurred. The tax credit scheme provides a support for interventions aimed at achieving energy savings, including the implementation of renewable energy systems installed to meet the energy needs of residential buildings (i.e. domestic , lighting , power electrical appliances, etc.).

As a result of last legislative changes (DL No. 83/2012, Legislative Decree No. 63/2013, L. No.190/2014) the scheme can be summarised as follows:

  • for expenses incurred up to the 25th of June 2012, the tax credit is equal to 55%;
  • for expenditure incurred from June 2013 to December 2015, the tax credit is equal to 65%,
  • from the 1st of January 2016, the tax credit will become a structural measure and return to be equal to 36 % of the costs incurred.

The deduction, to be claimed over a period of 10 years, is compatible with the net metering and simplified purchase arrangements.
Photovoltaic systems represents a typical example of intervention that can benefit of this kind of incentive.
For the purchase of appliances a 10% VAT is applicable.


Last modified: Wed, 10 Feb 2016 15:05:28 CET