Overview

• Economy Minister Giancarlo Giorgetti told lawmakers the government intends a selective extension of the 50% renovation deduction focused on primary residences in 2026.
• The Finance Ministry has warned the measure is not yet certain and will depend on resources allocated during the Budget Law negotiations now under way.
• Options under study include means‑testing by income and household composition and allowing use of the deduction over five years instead of ten.
• Absent action, existing law reduces the renovation deduction to 36% in 2026, with further cuts planned for second homes.
• Tax‑office data show renovation‑related bank transfers dropped about 35% early this year, and several other building incentives could lapse at year‑end without renewal.