The bonus for building renovations was originally introduced in May 2020 as part of the ‘Relaunch Decree’ adopted in the wake of the pandemic. It aimed to boost the Italian economy by providing incentives aimed at improving building energy efficiency.

The scheme means homeowners can enjoy a tax deduction of 110%, allowing them to renovate at no cost. It will end in 2025 with what is covered, reducing progressively to 65% of expenses.

The Five Star Movement is resolved to promote this scheme once again. In its programme, it proposes the “stabilisation of building subsidies to allow the planning of investments on buildings and continue to improve energy saving levels and thereby save on energy bills.”

The European Union praised the scheme for boosting the decarbonisation of the building sector, which accounts for around 40% of energy use and 36% of CO2 emissions in Europe. Building renovation programmes are also being included in national plans submitted to the EU’s €750 billion coronavirus recovery fund.

As of 31 July 2022, more than 220,000 renovation projects were accepted at a total of €40 billion, and nearly €44 billion of deductions are expected, according to data from the Italian National Agency for New Technologies, Energy, and Sustainable Economic Development (ENEA).

The scheme had a “formidable positive impact” on the Italian economy, according to the National Council of Engineers (CNI). By the end of 2021, the subsidies contributed to the generation of more than €12 billion in Gross National Product (GDP) and the creation of 153,000 jobs, the association said in a study.

But such a scheme also requires strict administrative oversight to avoid abuses or the creation of a bubble in the construction market, Draghi warned.

“We may not agree on the 110% Superbonus, and we do not agree on the validity of this measure,” Draghi said in a speech to the European Parliament in May, accusing the scheme of causing market distortions.

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