The 2020 budget package includes a number of important measures related to the home, the so-called “home package“: in particular, the furniture and appliances bonus, the ecobonus and the renovation bonus are confirmed for another year. In addition to these, there is the “facade bonus“, which grants a 90% deduction for expenses incurred in 2020 for interventions aimed at recovering or restoring the external facade of buildings.
Again for the benefit of the sector, the Government wants to extend the Research and Development Tax Credit to technological innovation and design, with an amendment to the budget law.
Thanks to another amendment, approved by the Senate Budget Committee, the tax credit for Italian SMEs participating in international trade fairs in Italy and abroad, introduced with the recent Growth Decree, has been strengthened for 2020 and extended to 2021.
Let's look at all these important benefits in order.

Mobile Bonus extended to 31 December 2020
 

Financial facilitation that has been very successful so far, the Bonus Mobili has been extended by the Italian Government also for the whole calendar year 2020. It consists in the Irpef deduction of 50% of the purchase price of furniture and large household appliances of a class not lower than A+ (A for ovens), intended to furnish a property subject to renovation.
The maximum deductible expenditure limit for furniture and appliances is 10,000 euros, including VAT, and the deductible portion is 50% of the expenditure incurred. All the modalities of the bonus remain unchanged.

Ecobonus extended until 31 December 2020
 

The tax deduction for the energy upgrading of buildings has also been extended for the whole of 2020. Incentives with a 65% bonus were provided for global energy requalification work, work on the building envelope, the installation of solar panels for the production of hot water, the replacement of winter air conditioning systems with class A condensing boilers and the installation of advanced temperature control systems, the replacement of traditional water heaters with heat pump water heaters dedicated to the production of domestic hot water, the purchase and installation of micro-cogenerators to replace existing systems. Repayment of the deduction will be made in ten equal annual instalments.

Renovation bonuses for works extended until 31 December 2020

The renovation bonus is also confirmed for a further year. It will be possible to deduct from Irpef 50% of the expenses incurred up to 31 December 2020, with a maximum limit of 96 thousand euros per property unit, for the redevelopment of housing and the common parts of condominium buildings. The deduction will be divided into ten annual instalments.
The allowance concerns ordinary and extraordinary maintenance, restoration and renovation and building renovation, as well as work on buildings damaged by disasters, the purchase and construction of garages and parking spaces, the elimination of architectural barriers, the prevention of unlawful acts, wiring and noise pollution reduction, energy saving measures, the adoption of anti-seismic measures, asbestos remediation, and safety against domestic accidents.

Limitation of invoice discount

On the other hand, the mechanism of the invoice discount is greatly reduced by limiting its use and scope of application. In fact, the immediate invoice discount is maintained only for major first-level renovations of over 200 thousand euros, carried out on the common parts of the condominiums.

New measure: the 'facade bonus

A new measure introduced by the 2020 budget package, strongly supported by the Government, is the so-called “facade bonus“ which grants a 90% deduction for expenses incurred in 2020 for interventions, including those of cleaning or external painting only, aimed at recovering or restoring the external facade of buildings.

Research and Development tax credit also for technological innovation and Design
 

With an amendment to the budget law, the Government has extended the Research and Development Tax Credit also to technological innovation and design. FederlegnoArredo is very satisfied and, in a note, states that this is an important turning point for the Italian wood-furniture sector, which stands out in the world for innovation and design quality. The new tax credit is a fundamental industrial policy tool for Made in Italy companies that have their strong point in design and innovation.
The Research and Development Tax Credit is a tool that will allow Italian companies to better defend themselves against the phenomenon of counterfeiting, a real scourge for the sector.

Tax credit for participation in trade fairs by Italian SMEs
 

With an amendment approved by the budgetary committee of the Senate, the tax credit for Italian SMEs participating in international trade fairs in Italy and abroad, introduced by the recent Growth Decree, has been strengthened for 2020 and extended to 2021.
The fund will have an endowment of €10 million for 2020 and €5 million for 2021, allowing companies to use a tax credit equal to 30% of the expenses incurred up to a maximum amount of 60,000 euros for each beneficiary.
“A concrete measure - said FederlegnoArredo, satisfied also in this case - that will support companies that look to trade fairs as a key tool to bring the quality and know-how of Made in Italy around the country and the world, contributing to the prestige and growth of Italian industry“.