Green Bonus 2020
Guide to concessions for interventions with greenery
What is the GREEN BONUS?
The 2020 Green Bonus incentive was introduced with the 2018 budget law (article 1, paragraph 12 of Law no. 205 of 2017) and then extended in 2019 (article 1 of Law 145 of 2018) and 2020 (article 10 of Legislative Decree no. 162 of 2019) and allows for incentives in the area of greenery maintenance interventions by the Italian state.
It is a 36% Irpef deduction on expenses incurred in 2020 for the following interventions:
- greening of private open areas of existing buildings;
- real estate units, appurtenances or fences;
- irrigation systems and well construction;
- creation of green roofs;
- hanging gardens;
- design costs;
- maintenance related to the execution of the interventions.
The Revenue Agency also specifies that the deduction must be divided into ten annual installments of equal amounts and must be calculated on a maximum amount of 5.000 euros per residential real estate unit.
The maximum deduction is 1.800 euros per property (36% of 5.000).
Furthermore, the green bonus is also valid for condominium buildings and is also applicable to expenses incurred for interventions carried out on external common areas; up to a maximum total amount of 5.000 euros per residential real estate unit. In this case, the individual condominium owner is entitled to the deduction within the limit of the share attributable to him, provided that the same has actually been paid to the condominium within the deadline for submitting the tax return.
Works excluded
The deduction does not apply, however, to expenses incurred for:
- the periodic ordinary maintenance of pre-existing gardens not connected to an innovative or modifying intervention in the terms indicated above;
- jobs in economics.
Do I need to apply for a permit?
No, it is sufficient to adhere to the intervention categories indicated above and ensure that the payment is traceable electronically.
Method of payment
I can pay by bank transfer or credit card, taking care to keep the payment receipts and any invoice.
Do I have to enter a reason for the transfer?
No, it is not mandatory., there is no mention of it in the Revenue Agency guidelines. If you wish to specify, you can use:
"Bank transfer for “Green Bonus” deductions pursuant to paragraphs 12 to 15 of Law no. 205/2017. Payment of invoice no. __________ of 00/00/0000 in favor of _________________"
Standards of Reference
Article 1, paragraph 12 of Law No. 205 of 2017
Article 1 paragraph 68 of law no. 145 of 2018 – Extension 2019
Article 10 of Legislative Decree no. 162 of 2019 – Extension 2020
Prassi
Circular no. 13 of 19 May 2019 – Guide to the personal income tax return for the 2018 tax year: expenses that give right to deductions from income, tax credits, tax credits and other elements relevant for completing the return and for affixing the conformity stamp
Circular No. 8 of 10 April 2019 – Commentary on tax news. Law 30 December 2018, n. 145 – “State budget forecast for the financial year 2019 and multi-year budget for the three-year period 2019-2021” (Budget Law 2019). Initial clarifications and answers to questions posed during videoconference events organized by the specialized press
NB: Articles of laws, decrees, legislative decrees, etc. may have been modified by subsequent regulatory interventions. Consult the text currently in force using the Economic and Financial Documentation Search Engine
Pig iron: www.agenziaentrate.gov.it
