Renovation incentives for commercial premises
Renovation bonus for extraordinary maintenance, restoration, and conservative renovation, building renovation is also for shops, recipients of the brand new 110% bonus aimed at improving energy class and therefore overall savings.
There are differences between the Renovation Bonus and the 110% Bonus, both in relation to the interventions eligible for relief, the procedure to be followed and the deadlines to be met, and the amount of the deduction also changes.
In the case of the renovation bonus, the deduction is 50%, but with a maximum expenditure ceiling of €96,000. In the case of the new economic facilitation, the quota rises to 110% within the limit of the fiscal capacity and there is not only the deduction among the instruments that can be used by the taxpayer.
The bonus can also be used with a direct discount on the invoice or by transferring the credit to a bank or a third party, including for energy efficiency and earthquake-proof interventions, installation of photovoltaic systems, or infrastructure for recharging electric vehicles in buildings.
Bonus renovation shop 2021
The main interventions to be carried out under the renovation bonus for shops:
- extraordinary maintenance (installation of lifts and safety stairs, construction and improvement of toilets, replacement of external fixtures and windows or shutters with shutters and with modification of material or type of fixture, reconstruction of stairs and ramps, interventions aimed at energy saving, fencing of private area, construction of internal stairs), restoration and conservative rehabilitation, building renovation.
- Works necessary for the reconstruction or renovation of the damaged building following a disaster.
- Interventions aimed at the elimination of architectural barriers, and the implementation of any tool that favours mobility inside and outside the home for people with severe disabilities through communication, robotics, and other means of more advanced technology.
Incentives for energy-saving work (110%)
For a shop to qualify as such, it is essential to ensure natural ventilation from doors and windows of 10% of the floor space. But also at least 10% of the floor area must be naturally lit, and accessory rooms must be at least 2.40 meters high, at least 12 square meters in area, and 2.50 meters in height.
Within this framework, it is possible to access the 110% bonus for energy-saving measures. Provided that
- at least one thermal insulation of the vertical, horizontal and inclined opaque surfaces of the building envelope, including single-family buildings, on more than 25% of the gross dispersing surface of the building
- replacement of winter air-conditioning systems with centralised heating and cooling systems
- anti-seismic interventions.
The 110% bonus, introduced by the Relaunch Decree, is valid for expenses incurred from 1 July 2021 to 31 December 2021.
To qualify for the tax benefit you must be resident in Italy
Those eligible for the Renovation Bonus are the persons indicated in Article 5 of the Consolidated Income Tax Act, who produce income in an associated form (simple partnerships, limited partnerships, and persons treated as such, family businesses), for buildings that are not capital goods or merchandise. Therefore, for real estate that falls within the private sphere.
The bonus is available not only to the owners of the property to be renovated but also to those who bear the costs and have the rights of enjoyment:
- the owners or bare owners of the property to be renovated
- tenants or leaseholders
- holders of a right of enjoyment
- members of cooperatives
Renovation bonuses can only be deducted by individuals who pay IRPEF income tax. This category also includes professionals and self-employed people working with a VAT number and micro-businesses (sole proprietorships, partnerships: SS, SNC, and SAS). Companies subject to IRES taxation, such as SRL, SRLS, or SPAs, are not eligible for the incentive.
Partnerships SS, SNC, and SAS, as well as sole traders, can access the restructuring bonus but not on the work that concerns capital goods and goods for sale.
Goods are all those “materials” that are purchased to be resold or to be used in production processes, such as, for example, raw materials. On the other hand, capital goods are those “objects” used to support the activity itself. For example, the shed or machinery to produce the finished product.
Work done on the shell of the building in which the activity is carried out and on the systems at its service, are not among the transactions subject to deduction, as the building is a capital asset.
On the other hand, professionals, or self-employed persons subject to ordinary taxation on private property are eligible for the incentives. Conversely, those subject to the flat rate or minimum tax regime are not eligible.
Access to the Sisma bonus is also allowed to:
- individual entrepreneurs, for buildings used for productive activities
- persons indicated in Article 5 of the Tuir, who produce income in associated form (simple partnerships, general partnerships, limited partnerships, and persons treated as such, family businesses).
It is possible to intervene both on goods, assets, and capital goods (Resolution 34/2020 of 25 June).
Anyone wishing to increase the energy efficiency of a building used for business purposes can take advantage of the Eco bonus at 65% or 50% and access the benefit. The building must be an existing building and not a new one.
The eco bonus benefit is available to taxpayers who earn a business income, whether they are:
- partnerships: simple company SS, general partnership SNC; limited partnership SAS;
- corporations: simplified limited liability company SRLS, joint stock company SPA, limited liability company SRL, limited partnership company SAPA.
Unlike the renovation bonus, deductions can affect IRES income tax.
It is possible to intervene on goods, capital, and instrumental goods (resolution 34/2020 of 25 June).
As far as the facade bonus is concerned, companies can take advantage of the bonus.
In particular, the following are eligible
- simple companies
- associations of professionals
- taxpayers who earn business income (individuals, partnerships, corporations).
On the other hand, companies are not eligible for the 110% Super-bonus.