Superbonus 110%: Deadline Extension for Public Housing and Key Updates for 2023
The approaching deadline of June 30, 2023, brings renewed attention to several important tax and construction incentives in Italy, including the 110% Superbonus. However, for certain categories of beneficiaries, an extension of the incentive period has been confirmed.
Superbonus 110% Extension for Public Housing and Condominiums
For public housing projects and condominiums, the 110% Superbonus has been extended until December 31, 2023, provided that the ownership share held by private individuals exceeds that of the Public Housing Entities (Enti ERP – Public Housing Institutes).
In all other cases, beneficiaries must achieve a minimum work progress status of 60% (SAL – Stato di Avanzamento Lavori) by June 30, 2023, in order to maintain eligibility.
It is also important to note that the June 30 deadline does not apply to mixed condominiums, meaning residential buildings that include housing units owned by public entities.
Summary of the New Superbonus Scenario
- The 110% Superbonus is extended until December 31, 2023, when private ownership shares exceed those of the Public Housing Entities (Enti ERP).
- In all other cases, a minimum work progress level of 60% must be reached by June 30, 2023.
- The June 30 deadline does not apply to mixed condominiums involving residential units owned by public entities.
Italian Revenue Agency Circular 13/E: Main Superbonus Updates
On June 13, 2023, the Italian Revenue Agency (Agenzia delle Entrate) published Circular No. 13/E, providing important clarifications and updates regarding the Superbonus framework in light of:
- Decree-Law No. 176/2022 (Aiuti Quater Decree);
- The 2023 Budget Law;
- Decree-Law No. 11/2023 (Tax Credit Transfer Decree).
The circular introduces several key updates.
1. Superbonus for Public Housing Entities (Enti ERP)
For Public Housing Entities, the 110% tax deduction remains available throughout 2023 for interventions carried out on social housing properties, provided that at least 60% of the overall project has been completed by June 30, 2023.
2. Extension of the Single-Family Home Superbonus
For interventions carried out on single-family homes starting from January 1, 2023, a 90% tax deduction applies to expenses incurred until December 31, 2023, provided that the taxpayer meets the following requirements:
- Ownership or a qualifying real right of use over the property;
- The property is used as the taxpayer’s primary residence;
- Annual income does not exceed €15,000.
3. Ten-Year Deduction Option for 2022 Expenses
Taxpayers can now spread deductions related to eligible Superbonus expenses incurred in 2022 over a period of 10 years instead of the previous 4-year period.
This measure, effective from the 2023 tax year, is designed to facilitate the practical use of tax deductions and reduce the annual tax burden on beneficiaries.
4. Tax Benefits for Photovoltaic Systems Installed by Non-Profit Organizations
A tax deduction is available for photovoltaic systems installed by non-profit organizations (ONLUS).
The deduction is calculated on eligible expenses up to €48,000 and within a spending limit of €400 per kilowatt (kW) of the system’s nominal power.
Penalties for Errors in Superbonus Tax Credit Transfers
Significant penalties apply in cases of errors related to invoices and communications concerning Superbonus interventions involving tax credit transfers or invoice discounts.
The applicable penalties are:
- 30% for the use of a non-eligible tax credit;
- 200% for the use of a non-existent tax credit.
Further clarification was provided by the Italian Revenue Agency in Response No. 348 of June 14, 2023.
According to the Agency, the applicable sanction is established under Article 13, paragraph 4, of Legislative Decree No. 471/1997, which penalizes the use of an existing tax credit in violation of the procedures established by current legislation, including situations where a correct communication has not yet been submitted.
The Agency also clarified that these violations may be remedied through the correction procedures provided under Article 13 of Legislative Decree No. 472 of December 18, 1997. Until September 30, 2023, taxpayers may also benefit from the so-called “special correction” procedure, subject to the conditions established by Article 1, paragraphs 174–178, of Law No. 197 of December 29, 2022.
Conclusion
The latest regulatory updates provide greater flexibility for Public Housing Entities, mixed condominiums, and certain private property owners benefiting from the Superbonus scheme. At the same time, the Italian Revenue Agency has strengthened compliance requirements regarding tax credit transfers and invoice discounts, making it essential for taxpayers and professionals to carefully verify documentation and communication procedures in order to avoid substantial penalties.
