The Thermal photovoltaic Dual Energy Luxferov panels come under, within the limits of applicability of specific cases, both the deductions of 50% for the recovery of the property assets and the thermal part with a 65% deduction for energy improvement. Please note that the two tax reductions are not cumulative.
Similarly for reduced VAT at 10%, where applicable as defined by the reference standard and the Revenue Agency’s circular.
Deduction for recovery work on property assets (50%)
The 50% tax deduction of the value of photovoltaic systems in building renovations was extended throughout 2015 via the Stability Law. All taxpayers liable to personal income tax can take advantage of the deduction on restructuring expenditure, regardless whether they are residents in the Italian State or not.
The tax break is not only for property owners but also for those who have a real/personal right on the property that is being restructured with relevant expenses. The common-law partner of the owner or holder of the property is also entitled to the deduction, provided they bear the costs and the bank transfers and invoices are in their name.
If building work is carried out on both the single unit or the condominium common areas, the 50% deduction, calculated on a maximum amount of EUR 96,000, must be divided into 10 equal annual installments.
To qualify for the income 50% tax deduction of on work aimed at building restoration, the following must be preserved and exhibited at the request of the offices:
- administrative authorizations;
• notification prior to beginning work sent to (ASL) the Local Health Authorities, if required in accordance with current provisions on building sites safety;
• invoices and receipts proving the expenses were actually incurred;
• receipts of transfers (bank or postal) for payment of expenses with express reference to the reference standard “art. 16-bis of the TUIR (Tax Consolidation Act)”.
Energy upgrading deductions for existing buildings (65%)
The 65% deduction was confirmed for all 2015 in relation to certain types of works aimed at upgrading the energy efficiency of existing buildings already equipped with heating systems and those entitled to take advantage of the deduction are:
- individuals, institutions and subjects as per art. 5 of the TUIR, not holders with a business income, who bear the costs for the execution of the planned works on existing buildings, parts of existing buildings or building units of any existing cadastral category, including rural, owned or held;
- holders with a business income that bear the expenses for the execution of the planned works on existing buildings, parts of existing buildings or building units of any existing cadastral category, including rural, owned or held.
The maximum eligible expenditure is related to the maximum amount of the deduction provided for that type of work: to clarify, for energy upgrading work on existing buildings the deduction limit is € 100,000, to which corresponds to a maximum subsidized expenditure amounting to EUR 153,846.15 (153,846.15 X 65% = 100,000).
Reduced VAT to 10%
Art. 127 d quinquies of the Presidential Decree 633/72, establishes the applicability of the reduced rate to the costs incurred for the purchase or construction, among others, of “production facilities and heat-energy distribution networks and electricity from solar-photovoltaic and wind power sources”.
Circular no. 36/E, dated 19 December 2013, clarifies the process for VAT purposes on transactions involving photovoltaic systems. An important differentiation is applied if the system qualification is relevant to movable or immovable assets as it involves, for VAT, different provisions.
We suggest you refer to the full version of the regulations in order to assess their applicability in specific cases.