Eclipsing the Past: The 90% Photovoltaic Bonus in 2023 (formerly the Superbonus 110%)

The government under the aegis of Meloni, through the 2023 Budget Law, has eclipsed the previous superbonus of 110%, reducing it to 90%. It has also ushered in stringent income limitations for eligibility. Furthermore, it is crucial to note that photovoltaic panels and photovoltaic storage batteries remain under the 90% superbonus category in 2023, albeit in a “train-driven” capacity.

Bidding Adieu to the Superbonus 110% by December 31, 2022

The inception of the superbonus at 110% transpired under the aegis of the government through the “Relaunch Decree” (Legislative Decree 34/2020, converted with amendments by Law no. 77 of July 17, 2020). This decree was formulated to offer incentives and support measures in response to the healthcare emergency stemming from COVID-19.

The eco-bonus at 110% allows individuals to claim a 110% tax deduction for specified types of interventions carried out between July 1, 2020, and December 31, 2022. The deduction is spread over a five-year period, with annual installments of equal amounts.

Solar photovoltaic installations can also benefit from the 110% bonus; however, this applies only in the role of a “train-driven” intervention.

Updates and Extensions

The 2021 Budget Law extended the superbonus until June 30, 2022, (for 2022 expenses, the deduction is divided into four annual installments), and made it accessible to photovoltaic installations realized on structures adjacent to buildings.

Subsequently, the 2022 Budget Law introduced adjustments to the deadlines of this substantial deduction. The June 30, 2022 deadline was extended in several scenarios:

• Until December 31, 2022, for interventions carried out by individuals on residential units.
• Until December 31, 2023, for interventions performed by public housing bodies and equivalent entities, including those carried out by individuals on individual residential units within the same building, and by undivided ownership cooperatives.
• Until December 31, 2025, for interventions carried out by condominiums, individual property owners or co-owners of buildings consisting of up to four residential units, as well as by non-profit organizations, volunteer organizations, and social promotion associations, including interventions performed by individuals on individual residential units within the same condominium or building wholly owned. In these cases, the deduction rate decreases over the years: 110% until December 31, 2023, 70% in 2024, and 65% in 2025.

The 110% superbonus underwent further modifications in the 2023 Budget Law under the aegis of the Meloni government.

Fresh Insights in 2023: The 90% Superbonus

The 2023 Budget Law has introduced several changes to the superbonus regulations outlined in art. 119 of Legislative Decree 34/2020.

First and foremost, the rate has been reduced from 110% to 90%.

Following the alteration of the initial clause of art. 119 of Legislative Decree 34/2020 by Legislative Decree 176/2022, to be converted, it is established that for interventions carried out by condominiums and individuals on common parts of buildings wholly owned by up to four units, as well as by individuals for interventions on individual residential units within the same condominium or building, and for interventions carried out by non-profit organizations, volunteer organizations, and social promotion associations registered in the appropriate registers, the superbonus is also applicable for expenses incurred by December 31, 2025, in the following percentages:

• 110% for expenses incurred by December 31, 2022
• 90% for expenses incurred in 2023
• 70% for expenses incurred in 2024
• 65% for expenses incurred in 2025

However, there are exceptions. Notably, the reduction in the rate from 110% to 90% for expenses incurred in 2023 for interventions carried out by the aforementioned subjects does not apply to:

• Interventions other than those carried out by condominiums for which, as of November 25, 2022, a certified commencement of works notice (CILA) has been submitted in accordance with art. 119, para. 13-ter of Legislative Decree 34/2020 (so-called “CILAS”).
• Interventions carried out by condominiums for which:
  • The assembly resolution approving the execution of the works was adopted before the entry into force of Legislative Decree 176/2022 (set on November 19, 2022), and provided that for these interventions, as of December 31, 2022, a certified commencement of works notice (CILA) has been submitted in accordance with art. 119, para. 13-ter of Legislative Decree 34/2020.
  • The assembly resolution approving the execution of the works was adopted on a date between November 19, 2022, and November 24, 2022, and provided that for these interventions, as of November 25, 2022, a certified commencement of works notice (CILA) has been submitted in accordance with art. 119, para. 13-ter of Legislative Decree 34/2020.
• Interventions involving the demolition and reconstruction of buildings for which an application for the acquisition of the building permit was submitted by December 31, 2022.

Superbonus for the Installation of Photovoltaic Systems by Non-Profit Organizations, Volunteer Organizations, and Social Promotion Associations

The 2023 Budget Law also stipulates that non-profit organizations, volunteer organizations, and social promotion associations registered in the designated registers, as per art. 119, para. 9 of Legislative Decree 34/2020, are eligible for the superbonus for “train-driven” solar photovoltaic installation interventions, as per art. 119, para. 5 of the same Legislative Decree, installed in non-pertinent areas or structures, even if owned by third parties and distinct from the buildings on which the “driving” interventions are carried out. In these cases, the deduction is subject to limits established by art. 119, para. 5 of Legislative Decree 34/2020.

Furthermore, it is stipulated that “Without prejudice to the provisions laid down in paragraph 10-bis, for the interventions contemplated herein, this paragraph applies up to a threshold of 200 kW with a deduction rate of 110% for expenses incurred.”

Photovoltaic: A Driven Intervention

A noteworthy distinction has emerged between “driving” and “driven” interventions. “Driving interventions” are those capable of independently securing a 110% tax deduction. Conversely, “driven interventions” necessitate collaboration with one of the “driving” counterparts to qualify for the 110% eco-bonus.

“Driving interventions,” i.e., the principal ones, include:

• Thermal insulation of opaque vertical, horizontal, and inclined surfaces that affect the building’s envelope, including single-family residences, with an incidence of more than 25% of the gross dispersing surface area of the same building or of the functionally independent real estate unit and which has one or more autonomous external accesses, located within multifamily buildings.
• Replacement of existing winter air conditioning systems with centralized systems for heating, cooling, or the supply of hot water to the common areas of buildings, or with systems for heating, cooling, or the supply of hot water to single-family buildings or to functionally independent real estate units with one or more autonomous external accesses, located within multifamily buildings.
• Seismic and seismic risk reduction interventions referred to in paragraphs 1-bis to 1-septies of Article 16 of Legislative Decree no. 63 of 2013 (Sismabonus).

Among the “driven interventions,” we find photovoltaic systems, specifically:

• Installation of photovoltaic solar systems connected to the electrical grid on buildings, up to an overall expenditure not exceeding that of the photovoltaic solar system, carried out in conjunction with one of the thermal insulation, replacement of winter air conditioning systems, or seismic risk reduction interventions previously listed.
• Installation of storage systems integrated with photovoltaic solar systems, either concurrently with or following the installation of the same systems.

Prerequisites

It is imperative to bear in mind that, as “driven interventions,” the mere installation of photovoltaic panels or storage batteries does not suffice to qualify for the 110% deduction. These interventions must be conducted in conjunction with one of the “driving” interventions mentioned earlier, serving as the foundational requirement.

The second prerequisite stipulates that the installation must be grid-connected, and any energy not consumed by the photovoltaic system or shared for self-consumption must be sold to the GSE (Energy Services Manager).

Additionally, the third requirement necessitates that, following these interventions on the property, there is an improvement of at least two classes in energy efficiency.

Furthermore, new provisions have been introduced for practices initiated between January 1, 2023, and December 31, 2023, for single-family homes. In this context, access to the superbonus also depends on the family income and the property’s intended use.

To qualify for the superbonus, the income threshold must be below €15,000. To calculate this value, one must sum the total family income and then divide it by the “family quotient,” a coefficient that varies depending on the number of family members (1 for individuals, 2 for married couples, increased by 0.5 for each additional family member, and by 1 for households with two or more additional family members).

For example, a family consisting solely of a husband and wife with a total annual income of €37,000 and a family quotient of 2 will not qualify for the superbonus. With a total of €37,000 divided by 2, the result is €18,500, exceeding the €15,000 threshold.

Conversely, a family consisting of a husband, wife, and two children with a total annual income of €37,000 will have a family quotient of 3 and thus qualify for the superbonus. With a total of €37,000 divided by 3, the result is €12,333, below the €15,000 threshold.

The second requirement necessitates that the property must be designated as the primary residence, the place of habitual residence and official domicile. Furthermore, the property must not be classified as A1 (luxury residences), A8 (villas), or A9 (castles, buildings of exceptional artistic or historical value) in the land registry.

Maximum Deductible Amount

The Revenue Agency, in Circular no. 60/E of September 28, 2020, clarified that in the case of the installation of photovoltaic solar panels and a photovoltaic storage system, the maximum expenditure limit is doubled. Therefore, it is feasible to claim a 110% bonus on expenses up to €48,000 for the photovoltaic system (with a spending limit of €2,400 for each kW of nominal power) and on expenses up to €48,000 for the storage batteries (with a spending limit of €1,000 for each kWh).

In summary, for all building types, the maximum deductions eligible for a 110% deduction are as follows:

• Photovoltaic systems: €2,400 per kW of nominal power (maximum €48,000). In the case of interventions referred to in Article 3, paragraph 1, letters d, e, and f of Presidential Decree no. 380/2001, the spending limit is reduced to €1,600 for each kW of nominal power.
• Storage systems: €1,000 per kWh of storage capacity, with an overall spending limit of €48,000 and, in any case, €2,400 for each kW of nominal power of the system.

This deduction cannot be cumulated with other public incentives or forms of assistance of any kind provided for by European, national, or regional regulations, including guarantee and revolving funds and photovoltaic incentives for on-site exchange.

The deduction is disbursed over five years, with five equal annual installments.

Fonti e testi ufficiali

Legge 29 dicembre 2022, n. 197 (Legge di Bilancio 2023)
https://www.gazzettaufficiale.it/atto/serie_generale/caricaDettaglioAtto/originario?atto.dataPubblicazioneGazzetta=2022-12-29&atto.codiceRedazionale=22G00211&elenco30giorni=false

Decreto Legge n.34 del 19 maggio 2020 (Decreto Rilancio), testo ufficiale
https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legge:2020-05-19;34

Agenzia delle Entrate, linee guida sul Superbonus 110% (come funziona)
https://www.agenziaentrate.gov.it/portale/superbonus-110%25

Agenzia delle Entrate, vademecum bonus 110% (pdf L’Agenzia Informa)
https://www.agenziaentrate.gov.it/portale/documents/20143/233439/Guida_Superbonus110__.pdf/49b34dd3-429e-6891-4af4-c0f0b9f2be69

Agenzia delle Entrate, circolare 24/E dell’8 agosto 2020 https://www.agenziaentrate.gov.it/portale/documents/20143/2624559/Circolare+n.+24+del+8+agosto+2020.pdf/53b2ee8b-88bc-09c0-c95f-0bb6dbd16c77

Agenzia delle Entrate, circolare 60/E del 28 settembre 2020
https://www.agenziaentrate.gov.it/portale/documents/20143/2665656/Risoluzione+n.+60+del+28+settembre+2020.pdf/078dfa15-2b90-b0d3-9c27-2c8026dbdfa4

Agenzia delle Entrate, domande e risposte
https://www.agenziaentrate.gov.it/portale/web/guest/faq1