Budget Law 2007 - Energy efficiency provisions
The Budget Law 2007 provides for various fiscal incentives and financial measures to improve energy efficiency and to abate emissions. Measures include:
fiscal incentives for enhancing energy efficiency and use of renewable energy in buildings;
financial grants for replacement of passenger and goods vehicles with less-polluting models, as well as those using natural gas or liquefied petroleum gas;
reduction of duty for biofuels used for transport.
A revolving fund with a yearly budget of EUR 200 million was established to finance the following GHG emissions reductions measures (2007-09):
a high performance micro-cogeneration plant;
electricity and heating production from small-scale renewable energy sources;
high efficiency electric motors (more than 45 kW);
improving end-use energy efficiency in the civil sector;
R&D for new technologies, low or zero emissions energy sources .
Budget 2008 confirmed the above measures, and extended the deadline of borne expenditures from December 2007 to 2010. It also widened the range of eligible measures in the building sector, by adding measures concerning the replacement of heating plants with heat pumps and geothermal low enthalpy systems.
Law no. 2/2009, implementing Legislative Decree no. 185/08 "Urgent measures to support families, work, employment and enterprise according to the strategic national framework for crises", by article 29 of Decree no. 185/08, modifies procedure for tax rebates of 55% for energy efficiency in buildings undergoing renovations, by introducing a shorter period to apply the tax rebates for users (5 years instead of 10) and an amendment regarding the documents to be submitted.
Law n. 220/2010 extended to 2011 the incentives and took again the period to apply the tax rebates to 10 years.
Law n. 201/2011 extended to 2012 and then Law 134/2012 to 30/06/2013 the incentives.
Legislative Decree 63, 4 June 2013, raised the tax deduction to 65% and extended the incentives to 31/12/2013 (30/06/2014 for renovations carried out on the common parts of residential buildings).
Law n.147/2013 extended the 65% tax deduction to 31/12/2014 (30/06/2015 for renovations carried out on the common parts of residential buildings) and foresee a 50% tax deduction from 01/01/2015 to 31/12/2015 (30/06/2016 for renovations carried out on the common parts of residential buildings).
In 2008, a tax credit to favour the installation of RES plants was introduced to subtract from the IRPEF (income tax of physical persons) or IRES (income tax on companies revenues) part of the costs incurred. The tax credit scheme provides a support for interventions aimed at achieving energy savings, including the implementation of renewable energy systems installed to meet the energy needs of residential buildings (i.e. domestic , lighting , power electrical appliances, etc.).
As a result of last legislative changes (DL No. 83/2012, Legislative Decree No. 63/2013, L. No.190/2014) the scheme can be summarised as follows:
- for expenses incurred up to the 25th of June 2012, the tax credit is equal to 55%;- for expenditure incurred from June 2013 to December 2015, the tax credit is equal to 65%,- from the 1st of January 2016, the tax credit will become a structural measure and return to be equal to 36 % of the costs incurred.
The deduction, to be claimed over a period of 10 years, is compatible with the net metering and simplified purchase arrangements. Photovoltaic systems represents a typical example of intervention that can benefit of this kind of incentive. For the purchase of appliances a 10% VAT is applicable.
fiscal incentives for enhancing energy efficiency and use of renewable energy in buildings;
financial grants for replacement of passenger and goods vehicles with less-polluting models, as well as those using natural gas or liquefied petroleum gas;
reduction of duty for biofuels used for transport.
A revolving fund with a yearly budget of EUR 200 million was established to finance the following GHG emissions reductions measures (2007-09):
a high performance micro-cogeneration plant;
electricity and heating production from small-scale renewable energy sources;
high efficiency electric motors (more than 45 kW);
improving end-use energy efficiency in the civil sector;
R&D for new technologies, low or zero emissions energy sources .
Budget 2008 confirmed the above measures, and extended the deadline of borne expenditures from December 2007 to 2010. It also widened the range of eligible measures in the building sector, by adding measures concerning the replacement of heating plants with heat pumps and geothermal low enthalpy systems.
Law no. 2/2009, implementing Legislative Decree no. 185/08 "Urgent measures to support families, work, employment and enterprise according to the strategic national framework for crises", by article 29 of Decree no. 185/08, modifies procedure for tax rebates of 55% for energy efficiency in buildings undergoing renovations, by introducing a shorter period to apply the tax rebates for users (5 years instead of 10) and an amendment regarding the documents to be submitted.
Law n. 220/2010 extended to 2011 the incentives and took again the period to apply the tax rebates to 10 years.
Law n. 201/2011 extended to 2012 and then Law 134/2012 to 30/06/2013 the incentives.
Legislative Decree 63, 4 June 2013, raised the tax deduction to 65% and extended the incentives to 31/12/2013 (30/06/2014 for renovations carried out on the common parts of residential buildings).
Law n.147/2013 extended the 65% tax deduction to 31/12/2014 (30/06/2015 for renovations carried out on the common parts of residential buildings) and foresee a 50% tax deduction from 01/01/2015 to 31/12/2015 (30/06/2016 for renovations carried out on the common parts of residential buildings).
In 2008, a tax credit to favour the installation of RES plants was introduced to subtract from the IRPEF (income tax of physical persons) or IRES (income tax on companies revenues) part of the costs incurred. The tax credit scheme provides a support for interventions aimed at achieving energy savings, including the implementation of renewable energy systems installed to meet the energy needs of residential buildings (i.e. domestic , lighting , power electrical appliances, etc.).
As a result of last legislative changes (DL No. 83/2012, Legislative Decree No. 63/2013, L. No.190/2014) the scheme can be summarised as follows:
- for expenses incurred up to the 25th of June 2012, the tax credit is equal to 55%;- for expenditure incurred from June 2013 to December 2015, the tax credit is equal to 65%,- from the 1st of January 2016, the tax credit will become a structural measure and return to be equal to 36 % of the costs incurred.
The deduction, to be claimed over a period of 10 years, is compatible with the net metering and simplified purchase arrangements. Photovoltaic systems represents a typical example of intervention that can benefit of this kind of incentive. For the purchase of appliances a 10% VAT is applicable.
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