Italy overhauls building‑renovation tax credits and boiler incentives for 2025‑2027

Italy has restructured its system of tax deductions for building‑renovation works for the 2025‑2027 period. The new rules set a spending ceiling of €96,000 per property and introduce differentiated deduction rates based on the type of building and the year of expenditure. For primary‑residence renovations, the deduction is 50% for expenses incurred in 2025‑2026 and falls to 36% in 2027; for other buildings the rates are 36% and then 30% respectively. The Ecobonus and Sismabonus follow the same schedule, while the Bonus mobili remains unchanged.

From 3 August 2026, the Bonus Caldaia will no longer cover pellet or wood‑burning boilers. Incentives will be limited to electric heat pumps, certified hybrid systems, and solar‑thermal installations. Eligible projects can still claim the Ecobonus at 50% for a primary home (36% for a second home) and receive the Conto Termico reimbursement of up to 65% of costs. A single exception allows the replacement of an existing biomass unit with another of the same type, provided strict technical and emission standards are met. New renovation projects must also ensure that at least 15% of heating and cooling energy comes from renewable sources, otherwise building permits may be denied.