Overview

• Italy’s 2026 Budget is set to maintain the 50% deduction for works on primary residences and 36% for other homes, pushing the scheduled reduction to 2027.
• Deputy minister Vannia Gava says the renewal would not be tied to income, with a possible option under review to shorten the payback period to five years.
• Economy minister Giancarlo Giorgetti had flagged a selective approach earlier in the week, a rethink driven by a reported 35% drop in traceable renovation payments in early 2025.
• The extension would cover both the renovation bonus and the energy-efficiency ecobonus, with an estimated fiscal cost of about €1.5 billion.
• The draft must be finalized in the Manovra and approved by Parliament, while other incentives such as the furniture bonus and the 75% barrier-removal bonus face year-end expiries; the Superbonus remains usable through 31 December 2025 for eligible condo projects.