Facade bonus expiring: what to do to not lose the benefits
If there are no extensions, which are currently very unlikely, the facades bonus will expire on 31 December, which provides for a 90% deductibility of expenses. But even if the work is not completed, it will still be possible to take advantage of the incentive, while respecting certain conditions.
The facade bonus is running out. On 31 December the right to the maxi discount expires and the alternatives on the horizon seem few, given that the government may not extend the incentive to 2022. In the latter case, in order not to lose the Loan benefits (or part of them), it will be necessary to pay the company by the end of 2021.
The bonus provides a 90% incentive for property owners who renovate the facades of their homes including balconies, gutters, and other interventions specified on the Revenue Agency website. A site to view carefully, given that over the months the text has been modified several times and the possible interventions included in the bonus have been increased: from the rear facades of the buildings, if part perimeter and in any case visible from the street, to the balconies, to the ornaments, to the friezes (the bonus is not allowed on new buildings or on buildings that are demolished and under reconstruction).
How the face bonus works
The bonus provides, for another two months, a deduction in 10 years, with three options:
- the discount on the invoice,
- the assignment of credit,
- the tax deduction, in 10 annual installments of the same amount.
But what happens now that the bonus is about to expire? The Revenue Agency has specified that you can benefit from the facades bonus for all costs incurred in 2021, recovering part of the expense even after unfinished work, if the payment of the 10% portion of the amount remaining after the application of the discount the invoice is made by 31 December 2021, regardless of the progress of the work itself.
Another recent clarification concerns the possibility of taking advantage of the concessions even if the works are financially supported by a single paying condominium, who at this point will benefit in full from the 90% discount. It is essential that the person in question has been delegated to this task and that the invoices are made out to the condominium.
Works admitted
According to current legislation, it is possible to take advantage of the discount on all expenses relating to the works carried out for the renovation (or consolidation) of the external facade. Even the painting, or the simple cleaning, enjoys the 90% bonus, as well as the interventions on friezes, ornaments, and balconies.
The bonus also includes works on the facades that have an impact from a thermal point of view. But not only. Even the costs related to the design can be deducted, in addition to VAT, stamp duty, rights, and all ancillary costs, such as the installation of scaffolding or the disposal of the material.
The alternative
In the absence of the bonus, the alternative to carry out the same works will be the building renovation bonus, which provides for a deduction of 50% of the expenditure incurred up to a maximum of 98 thousand euros.
The “50% discount, however, is only allowed until the end of 2021. In the absence of extensions, from 1 January 2022, the deduction rate will drop to 36%, which will be applied to a maximum spending ceiling of 48,000 euros.