Italy Tax Agency Clarifies Rules on Transferring Tax Credits Related to Construction Expense Deductions

The Italian Revenue Agency Sept. 15 issued Letter No. 240/2025, clarifying income tax rules on transferring tax credits related to construction expense deductions. The taxpayer, a consulting firm, was offered by a construction client as payment for professional services, credits accrued through the invoice discount mechanism of Legislative Decree No. 34/2020, the relaunch decree. The taxpayer sought clarification as to whether the transfer was permissible in light of the prohibition, effective May 29, 2024, against construction work tax deduction beneficiaries transferring credits for deduction installments not yet used. Upon review, the Tax Agency clarified that: 1) the client could transfer ...