The Italian Revenue Agency has published an updated guide to tax breaks available for energy efficiency upgrades of buildings. This initiative is part of a broader framework of building incentives available to homeowners. For those who own multiple properties, it’s also helpful to consult our analysis of tax breaks for second homes for 2026. For a detailed review of all the technical requirements and the various guides, please visit the dedicated section on the Italian Revenue Agency ‘s portal .
IN SUMMARY:https://www.agenziaentrate.gov.it/portale/schede/agevolazioni/detrristredif/vademecum-voci-di-spesa
- Documented expenses incurred by taxpayers who own or maintain the property on which the work is carried out are deductible at a rate of 50 percent, up to a total amount not exceeding 96,000 euros per real estate unit;
- the measure was lastly extended until 31 December 2018 by art. 1, paragraph 3 , letter b), no. 1), of law 27 December 2017, no. 205 (2018 Budget Law);
- Among the eligible interventions, letter h) of the aforementioned Article 16-bis of the Consolidated Income Tax Code (TUIR) includes those “related to the construction of works aimed at achieving energy savings, with particular attention to the installation of systems based on the use of renewable energy sources,” providing that such works can be carried out even in the absence of construction work, by acquiring suitable documentation certifying the achievement of “energy savings” in accordance with current legislation;
- With reference to the possibility of recognizing this deduction for the installation of a photovoltaic system for the production of electricity, the Revenue Agency has clarified, among other things, that:
a. this question must be answered affirmatively ( Resolution 2 April 2013, no. 22/E ; Circular 27 April 2018, no. 7/E );
b. to this end, it is also necessary that the system be installed to meet the home’s energy needs (i.e. for domestic use, lighting, powering electrical appliances, etc.) and, therefore, that it be placed directly at the service of the home;
c. the deduction in question cannot, however, be combined with incentive tariffs, while it can be combined with the on-site exchange and dedicated withdrawal mechanisms;
d. The deduction cannot be recognized if the sale of excess energy produced constitutes a commercial activity (for example, in the case of a system with a power greater than 20 kW and a system with a power not exceeding 20 kW that is not used to serve a home);
and the benefit also applies to the installation of a storage system, provided that such intervention is concurrent with or subsequent to the installation of the photovoltaic system (in this regard, reference is also made to Circular No. 7/E of April 27, 2018 ). The expenditure limit eligible for the deduction (equal to 96,000 euros) remains the same, and applies to both the photovoltaic system and the storage system.
GUIDE WEBSITE: REVENUE AGENCY LINK