Italy ends 50% tax deduction for gas‑to‑biomass boiler swaps from Aug 2026

Effective 3 August 2026 Italy will end the 50 % tax deduction that currently applies to replacing gas boilers with pellet, wood or other biomass heating units. The change, introduced through the implementation of the EU RED III scheme (legislated in Italy by D.Lgs. 5/2026), removes both the fiscal deduction and eligibility for the Conto Termico 3.0 for such conversions.

Incentives will instead focus on technologies deemed more compatible with the energy transition: electric heat pumps, certified hybrid systems and solar‑thermal installations, which can still benefit from Ecobonus, the renovation bonus and the thermal account up to 65 % of costs. Biomass equipment may still receive support only when it replaces an existing biomass system with a more efficient, low‑emission unit that meets strict technical criteria (5‑star environmental certification, ≥87 % thermal efficiency, particulate emissions ≤1 mg/Nm³, documented dismantling of the old unit, certified fuel, proper documentation).

Homeowners will also have to integrate renewable sources into any thermal‑system renovation unless technical or economic impossibility is documented, reflecting the policy’s aim to reduce domestic heating emissions and improve air quality.