Italian government rolls out car‑fuel conversion bonus and solar income tax guidelines

From 29 July, Italy’s Ministry of Enterprises and Made in Italy has activated a retrofitting bonus that gives a €400 discount for installing a LPG system and €800 for a methane system on eligible gasoline or diesel cars. No application is required; accredited workshops submit the request, and the discount is applied directly to the invoice. The fund, limited to €4 million for 2026 within a €21 million multi‑year allocation, is allocated on a first‑come, first‑served basis.

Separately, Italian tax authorities clarified that revenues from photovoltaic installations are taxable when the surplus electricity is sold to the grid. Such earnings are treated as ordinary income and added to the taxpayer’s overall IRPEF liability. Homeowners who only use the electricity they generate are not required to declare any amount. The guidance applies to private individuals selling electricity through the Gestore dei Servizi Energetici (GSE).