Italy does not intend to backdate until 2024 the next restrictions on costly tax incentives for home renovations, a Treasury minister said on Thursday, in an effort to allay fears about the impact of the restrictions.
The government has said it must rein in incentives, which have cost the state more than 200 billion euros ($215 billion) over four years, in order to keep Italy’s public finances, which are under strain, under control. close monitoring of rating agencies.
The most generous incentive, called “Superbonus”, allowed homeowners to deduct the cost of energy saving work from their taxes over a period of 4 to 10 years, or to use the tax credit as a form payment when dealing with builders or banks.
Rome said it was considering changing the measures so that individuals could only deduct the cost of work carried out from their tax bills over a ten-year period.
Some lawmakers have suggested backdating the change to cover expenses incurred since the start of 2023 or even earlier, sparking protests from banks and businesses who said the move would devalue credits. tax that they had already received in payment.
On Thursday, Treasury Undersecretary Federico Freni told reporters that the changes would not be backdated until January.
“Thus, an expenditure made in December 2023 is not eligible for compulsory regularization over 10 years,” he said.
“The payment of 10 equal annuities will be an obligation and not an option for the taxpayer.
Italy’s national banking and construction lobbies said on Wednesday that any retroactive intervention would have the greatest impact on businesses, banks and citizens.
This new restriction comes after the government blocked, in March, the possibility of selling tax credits from construction work, with a few exceptions.
The Treasury estimates that Italy’s public debt, the second largest in the euro zone as a proportion of output, will reach almost 140% of GDP by 2026 due to the cost of stimulus measures.
($1 = 0.9318 euros) (Editing by Andrew Heavens)
