Bonus Facades, what it is
The "facade bonus" is the new tax discount for beautifying the buildings of our cities. It allows you to recover 90% of the costs incurred in 2020 without a maximum spending limit and they can all benefit from it. To be entitled to it, it is necessary to carry out recovery or restoration work on the external facade of existing buildings, of any cadastral category, including instrumental ones. Tenants and owners, residents and non-residents of the State, individuals and businesses can take advantage of it. The essential condition is, however, that the properties are located in areas A and B (indicated in the ministerial decree n.1444 / 1968) or in areas similar to these on the basis of regional legislation and municipal building regulations. Works on parapets and cornices, gutters and downpipes also benefit from the deduction. Related expenses are also included in the new tax relief: from the disposal of materials to the installation of scaffolding, from the rights paid for the request for housing permits to the tax for the occupation of public land, from VAT to stamp duty. Works carried out for the renewal and consolidation of the external facade are facilitated, including simple cleaning and painting, and interventions on balconies, ornaments and friezes. Specifically, article 25 of the 2020 Budget Bill provides that the expenses documented and incurred in the year 2020 relating to building interventions, including ordinary maintenance, aimed at:
- the recovery of the facade;
- the restoration of the facade
The 2020 facades bonus has been envisaged as a new measure within the 2020 home bonus package, whose interventions have all been extended for another year. In particular, the extension of the tax deductions was recognized in 2020 on:
- energy requalification, renovations, purchase of furniture and appliances, anti-seismic adaptation.
What it consists of
The tax relief is presented as a deduction from the gross tax (Irpef or Ires) and is paid when interventions aimed at recovering or restoring the external facade of existing buildings, including instrumental ones, are carried out. It should be noted that interventions of only external cleaning or painting are also included in the provision. The buildings, as mentioned, must be located in zones A and B, as identified by ministerial decree no. 1444/1968, or in those assimilable to them according to regional legislation and municipal building regulations. How much is the deduction? As mentioned, it is recognized for 90% of the documented expenses incurred in the year 2020 or, in the tax period in progress on December 31, 2020, for subjects with a tax period that does not coincide with the calendar year . How is the deduction distributed? Simple: in 10 constant annual installments of the same amount in the year of expenses and subsequent years. Unlike other concessions for interventions carried out on buildings, the maximum bonus for expenditure and the maximum deduction limit are not foreseen for the "bonus facades".
Who is it (and who is not)
The facades bonus is from 2020 to all those who, in 2020, carry out renovations in the historic center or in the suburbs, in large cities or small municipalities, of:
- facade of the condominium;
- facade of a private house.
However, there are some rules to respect on where to carry out the interventions. These, in fact, must be performed exclusively on balconies, on the opaque structures of the facade or on ornaments and friezes. In particular, works are allowed:
- on the opaque structures of the façade which are thermally influential or which affect more than 10% of the plaster of the total gross dispersing surface of the building;
- only for cleaning or external painting on the opaque structures of the facade;
- on balconies, ornaments or friezes, including those of cleaning or painting only.
More specifically, we can say that the following are admitted:
- public and private entities that do not carry out commercial activities;
- natural persons, including arts and professions operators;
- associations between professionals;
- simple companies;
- taxpayers who earn business income (individuals, partnerships, corporations).
In order to take advantage of the opportunity, the beneficiaries must, on the basis of a suitable title, own or hold the property subject to the intervention, at the time of the start of the works or at the time of incurring the costs, if prior to the aforementioned start. The starting date of the works must result from the qualifications, if any, or from a substitute declaration of deed of notoriety.
In particular, the taxpayers concerned must:
- hold the property on the basis of a lease contract, including financial, or loan, duly registered, and be in possession of the consent to the execution of the works by the owner;
- owning the property as owner, naked owner or holder of another real right of enjoyment on the property (usufruct, use, home or surface).
The deduction does not apply, however, to those who do not have a title of possession of the property duly registered at the time of the beginning of the works or at the time of incurring the costs if previous, even if it provides for the subsequent regularization. The 2020 facades bonus cannot be applied to interventions on systems, such as downpipes or cables: in fact, only interventions relating to «opaque structures of the facade, on balconies or on ornaments and friezes» are allowed. In other words, all elements and systems, such as fixtures, are excluded. In other words, the "facade bonus" is allowed for expenses related to interventions aimed at the recovery or restoration of the external facade of existing buildings, parts of them, or on existing real estate units of any cadastral category, including instrumental ones. However, it is not the case for interventions carried out during the construction phase of the property or carried out by demolition and reconstruction, including those with the same volume of the existing building, which can be classified in the category of "building renovation".
What are the costs not included in the 2020 bonus?
- Cavedi, small arches, internal spaces, with the exception of those visible from the street, expenses for replacing windows, courtyards, doors and gates.
The concession does not apply even to works carried out during the construction phase of the property or carried out by demolition and reconstruction, including those with the same volume of the existing building, which can be classified in the category of "building renovation".
- The one-year extension is valid for the whole package of discounts dedicated to housework. Among these: Bonus restructuring 2020: here you can take advantage of a 50% deduction for a maximum expenditure of 96.000 euros, to be divided into 10 annual installments of the same amount, also valid for other types of intervention;
- Ecobonus 2020: here a 65% or 50% deduction or discount is valid for all those who carry out energy saving interventions, for a maximum expenditure of 100 thousand euros to be always divided in 10 years.