# Italy Conto Termico 3.0 incentive program updates > Developing situation record from CLSTR: https://clstr.news/situations/italy-conto-termico-30-incentive-program-updates > Updated: 2026-10-29T03:23:04.000Z. Sources: 5. Developments: 2. The Conto Termico 3.0 incentive program, designed to promote energy efficiency and renewable thermal energy in existing buildings, faced significant operational challenges following its February 2026 launch. A surge in applications led to approximately 1.3 billion euros in requests within a single month, exceeding the annual 900 million euro budget and forcing a suspension of applications in March 2026. To address the resulting funding gap and project halts, the Ministry of Environment and Energy Security (MASE) prepared a corrective decree. The Conference of Regions and Autonomous Provinces has issued a favorable opinion on these modifications. The approved decree introduces 16 articles of changes to the original August 2025 regulations, adjusting access conditions, contribution amounts, and documentation requirements. Specific measures include reduced incentives for interventions in small municipalities to manage expenditure. Additionally, the decree clarifies that fiscal deductions are excluded for replacing winter air conditioning systems with fossil fuel boilers, instead prioritizing heat pumps, hybrid systems, and certain biomass generators. ## Timeline ### 2026-10-29: Italy's Regions approve updates to Conto Termico 3.0 incentive program Italy's Regions have approved a corrective decree for the Conto Termico 3.0 incentive program following a funding crisis that saw demand exceed the annual budget by several hundred million euros. 4 sources. https://clstr.news/cluster/italys-regions-approve-updates-to-conto-termico-30-incentive-program ### 2026-10-26: Italy approves corrective decree for Conto Termico 3.0 incentives Italy's Conferenza Unificata approved updates to the Conto Termico 3.0 decree, modifying incentive access and documentation requirements for energy efficiency projects. 2 sources. https://clstr.news/cluster/italy-approves-corrective-decree-for-conto-termico-30-incentives --- Cite as: Italy Conto Termico 3.0 incentive program updates. CLSTR, https://clstr.news/situations/italy-conto-termico-30-incentive-program-updates