In which Cases Can the Renovation Bonus be Revoked?

The 50% Renovation Bonus has been one of the most successful tax incentives in recent years. Indeed, it allows deducting 50% of the total expense incurred for property renovation works from IRPEF (personal income tax). However, over the years, the legislation governing tax bonuses has changed significantly. In 2022, the Government issued several regulations to reduce tax fraud, imposing stricter rules on tax deductions related to renovation works. For this reason, some anomalies in the execution of renovation works, or in the submission of related documentation, could lead to a revocation of the bonus.

In case of irregularities, the Revenue Agency may deny access to tax deductions, and even revoke benefits already obtained. This is why it is essential that every renovation practice is followed with the utmost attention by those who perfectly understand building and tax regulations. Let’s look in detail at some cases where the Renovation Bonus can be revoked.

Obtaining the Conformity Visa

First of all, to start a building renovation, it is mandatory to obtain a conformity visa. This is a document that can be drawn up by an accountant, a registered labor consultant, the head of a CAF center, an expert, or a legal auditor with a degree in economics or law. This document certifies that all the work to be carried out complies with the regulations governing access to building bonuses.
In the absence of a conformity visa, the bonus could be revoked.

Pay Attention to Credit Transfer

To prevent tax fraud, the government had initially thought of blocking the mechanism of multiple credit transfers. The idea was to allow credit transfer only once. However, the block on multiple transfers caused several slowdowns within construction sites, because the mechanism they wanted to introduce had a retroactive character. To unblock the situation, the Government put forward a new amendment that provides for the return of multiple credit transfers, but only twice.

Moreover, this double credit transfer will now only be allowed to accredited entities. What does this mean? Currently, each credit has an identification code and the Revenue Agency will be able to verify transfers and record any irregularities. In case of non-compliance, the bonus may be revoked. Not only that, these irregularities can also be punished with very high fines (up to €100,000) and even detention from 2 to 5 years, in case of false declarations and serious omissions.

The Construction Company and Workers’ Rights

The Government has set new, even stricter controls that will no longer concern just the construction site and work progress, but also the conditions of workers. To obtain tax deductions, it is mandatory to use home renovation companies that operate in compliance with the national and territorial CCNL (National Collective Labor Agreement). All workers and technicians of the company must therefore be hired with a regular contract.

For this reason, it is necessary to rely only on highly specialized companies and professionals capable of guaranteeing maximum rigor in every aspect of renovation practices. Never leave room for improvisation when planning to renovate a property. Our experts have been operating in the sector for decades and ensure you the highest level of expertise in tax and construction matters. To learn more, contact us now.