Italy Tax Agency Issues Circular on Tax Deductions for Building Renovations, Energy Efficiency Improvements, Superbonus

The Italian Revenue Agency June 19 issued Circular No. 8/E, clarifying individual income tax deductions under Law No. 207/2024, the 2025 budget law. The circular clarifies: 1) the 30 percent deductions for renovation and energy requalification are extended through 2027; 2) increased deductions are allowed, at 50 percent for 2025 and 36 percent for 2026-2027, on covered expenses for renovating primary residences; 3) a deduction up to 5,000 euros (US$5,762) applies for furniture purchases linked to renovations in 2025; 4) deductions aren’t allowed for expenses incurred after Dec. 31, 2024, for replacing heating systems with systems powered by fossil fuels; ...