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Legislation

Incentives: Tax deductions and reduced VAT: choosing solar thermal energy is now more convenient than ever.

Thanks to the sun’s energy solar panels produce hot water for free.
Since this is a clean and renewable source of energy, solar panel installations receive government and regional incentives.

The government provides two types of incentives:
– Vat reduced to 10%.
– Income tax deductions based on the current year’s financial bill.

Current income tax deductions and how to apply for the incentives:

A tax deduction of 55% for solar panels.

The 55% income tax deduction for solar thermal panels issued in 2008’s Financial Bill has been extended up to 2010. This deduction was first introduced in the 2007 Financial Bill (law 27 December 2006 n. 296) “Provisions for the state’s annual and multi-year budgets”. This is an important incentive aimed at promoting solar thermal energy throughout Italy.

Who can take advantage of the incentives?

All taxpayers, individuals, professionals, companies and firms that incur costs to install solar panels on existing buildings, on a portion of the buildings and on existing homes of any type, even rural, owned or purchased.

What is the maximum deductible amount? In how many years?

The maximum deductible amount for installing solar panels is 60,000 Euros.
The deductions can be spread over a number of equal, annual installments for not less than 3 years and not more than 10 years. The number of installments are decided by the tax payer and the decision is irrevocable. The decision is taken when making the first deduction.

How do I take advantage of these incentives?

In order to apply for the 55% Tax deduction you must:

– get a sworn affidavit from a qualified technician who states that the relevant work carried out complies with the technical requirements as stated in law 27 December 2006 n.296;

– send electronically (to the www.acs.enea.it web site, and receive an electronic receipt) or via registered mail to ENEA, within 60 days after completion of work and not beyond the 29th of February 2008 (for those whose tax period falls outside the calendar year, no later than 60 days after the 31 December 2007) a copy of the qualifying energy certification (or a copy of the qualifying energy certification issued by the autonomous provinces of Trento and Bolzano or municipalities that autonomously introduced the qualifying energy certification prior to 8 October 2005)

– send to ENEA a formal list of the work carried out.;

– individuals who are self employed must pay via bank transfers or postal money orders. Details accompanying the payment must include: the reason for payment, Fiscal Code number of the person making the payment, and Fiscal Code or Vat number of the beneficiary of the payment.

– the sworn affidavit, copy of the documents sent to ENEA, copies of payments for the work carried out and a copy of the bank/postal payment must be retained should the financial administration office request to see them.