Policy status:In Force
Date Effective:2007
Policy Type:Economic Instruments>Fiscal/financial incentives>Tax relief
Policy Target:Buildings>Existing buildings
Legal References:Law 28/12/2015 no. 208
Evaluation:In the 55% scheme, the cost saved per kWh ranges from EUR 0.06 for comprehensive retrofit measures to EUR 0.15 for replacement of windows. In general, a comprehensive package of measures is more cost-efficient than single measures, at the price of greater complexity and at the risk of insufficient resources. The simultaneous implementation of both schemes together with regional schemes, giving rise to a potential problem of double counting, suggests the desirability of stronger compartmentalisation of incentive measures. Finally, at present the eligibility of interventions under the 55% scheme can only be extended annually, leaving operators with some uncertainty nearing the end of each year. The program boosted retrofit investment in the residential sector between 2007 and 2009. In 2009, building owners submitted 240,000 tax credit claims. Estimates on the free rider rates, which were likely high for replacement of windows. In 2009, total investment in buildings retrofit provided by the program constituted more than $3.6 billion primarily in households (96%).

The 55% tax rebate programme provides tax credits to households for comprehensive or single retrofit energy efficiency measures, such as thermal insulation, installation of solar panels, replacement of heating and air-conditioning systems or comprehensive refurbishments. The total deductible amount is then distributed over a period of ten years.

Tax credit can cover 55% of the energy-related cost, but cannot exceed a maximum value that is determined by the type of measure taken. Tax credits are reimbursed over 10 years, beginning with the completion of work. 

Legislative Decree 63, 4 June 2013, raised to 65% the tax deduction and extended to 31/12/2013 the incentives (30/06/2014 for renovations carried out on the common parts of residential buildings). Law n.147/2013 extended the 65% tax deduction to 31/12/2014 (30/06/2015 for renovations carried out on the common parts of residential buildings) and foresee a 50% tax deduction from 01/01/2015 to 31/12/2015 (30/06/2016 for renovations carried out on the common parts of residential buildings).



The tax rebate scheme has been confirmed for 2016 by the 2016 Stability Law. Three new possibilities have been introduced 1) to claim the incentive for home automation interventions, in particular relative to “multimedia devices for the remote control of heating, hot water and air conditioning”; 2) to transfer the incentive for interventions on building common parts on the supplier of the service in exchange for a discount; 3) to include social housing as new eligible area.

The Budget Law 11/12/2016 confirmed the tax rebate scheme until 31/12/2017 (31/12/2021 for the renovations carried out on the common parts of residential buildings). The (energy efficiency) 65% tax deduction is increased (70 or 75%) for interventions on the building envelope and that improve the energy performance. The (renovation) 50% tax deduction is increased if it contributes to reduce the seismic risk of the building.

Last modified: Wed, 31 May 2017 12:03:27 CEST