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Good Practice

TAX ALLOWANCES FOR ENERGY EFFICIENCY

Cover of the manual explaining the tax allowance

It is a tax allowance system connected to the improvement of the energy efficiency of existing buildings. It consists in a reduction of 55 % on the taxes payed and calculated on the direct costs incurred by the taxpayer for the energy retrofitting and renovation of existing buildings.

I Description of the measure

Title in original language: Detrazione IRPEF del 55% per interventi di risparmio energetico sugli edifici

Location of CNA: Italy

Municipality / regional entity: Roma

Category of the experience: Standard & label
Type(s) of CNA:

Principal nomination: Financial 
Secondary nomination(s): Technological

Thematic field(s):

Principal field: Buildings & construction
Secondary field(s): Energy

Spatial scale: National
Time & duration:

Start date: 2007
Duration: 2012

Key word(s): buildings, Energy efficiency, tax reduction

Objectives:

To promote the energy renovation and retrofitting of existing buildings through a strategy of taxes reduction.

Activities:

The allowance consists in a tax deduction from the gross tax of 55 % of costs, effectively incurred by the taxpayer, sustained to improve the energy efficiency of existing buldings. The allowed interventions are mainly structural (i.e. walls, roofs, windows, boiler, etc.). In order to apply for the allowance, for certain types of interventions, the energy certification of the building is required.

Results:

This strategy has proven to be very effective in stimulating the demand of interventions for the energy retrofitting and renovation of existing buildings. Since 2007 the action produced 1.400.000 interventions for a total investment estimated in 17 bilions of euros.

II Assessment criteria

Mitigation effects: High

The reduction of energy consumption is directly connected to the reduction of fossil fuel consumption and then with the reduction of CO2 emissions.

Impacts on adaptation: Neutral

No impacts on adaptation have been identified.

Impacts on environment:


- Landscape: Positive
- Alpine ecosystems / biodiversity: Neutral
- Water / soil / air: Neutral
- "Other": None

The impact on the landscape is positive thanks to the re-use of existing buildings (instead of the construction of new buildings). No impacts can be identified for the biodiversity and water/soil/air sectors.

Impacts on society:


- Social justice: Neutral
- Regional / cultural identity: Neutral
- "Other": None

No impacts on social justice and cultural identity can be identified.

Impacts on economy:


- Employment / job creation: Very positive
- Added value / income: Positive
- Know how / competitiveness: Positive
- "Other": None

Very positive impacts are registered in job creation thanks to the very high number of interventions on buildings generated by the tax allowance. Impacts on added value/income and know how/competitiveness are also positive thanks to the tax allowances mechanism and to the very high variety of admitted interventions.

Public relations impact and awareness-raising: High

The CNA has been communicated at different scales and at different stakeholders levels (citizens, SMEs, Public Administrations, etc.). The tax allowance mechanism let to easly autopromote the intiative. A manual has been also published by Agenzia delle Entrate.

Transferability: Very high

According to the characteristics of the tax framework of a nation this action can be easily introduced. The spatial scale can be also different. In the case study it is referred to the National scale but the action can be replicated also at regional and local scale.

Cross sectoral and integrative approach: Medium

The action can be integrated by other tax allowances mechanisms. The sector of new buildings could be also included in the tax allowance scheme (this proposal is under evaluation).

Good governance: Medium

No participatory approaches in particular have been used. The dissemination of the information regarding the action uses the official communication channels like official bulletin boards.

III Executive body and contact information

Executive body: Administration

Agenzia delle Entrate is an Agency of the Italian Government with competences in taxes collection.

Contact person(s):

Name: Agenzia delle Entrate
Institution: Agenzia delle Entrate - Italian Government
Address: via Cristoforo Colombo n. 426 C/D 00145 Roma - Italy 
Phone: +39 06 583191
Fax: +39 065812277
Email: dp.iroma@agenziaentrate.it

Online information:

The manual explaining the tax allowance mechanism, Agenzia delle Entrate: http://efficienzaenergetica.acs.enea.it/opus/casaevoluta_edifici.pdf

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