Italy, 2027 Budget Law: building renovation tax incentives confirmed, 65% Ecobonus awaits EU approval

The 2027 Budget Law confirms tax incentives for building renovations and extends the furniture bonus. The draft law approved by the Council of Ministers on October 28 provides for the continuation of tax deductions of 50 percent for primary residences and 36 percent for other properties, as well as the extension of the furniture bonus, offering a 50 percent tax deduction on expenditure of up to 5,000 euros.

The possibility of restoring the 65% Ecobonus for energy efficiency improvements, which emerged in recent weeks, remains on the table. This measure would be particularly significant for the window and door manufacturing and solar shading sectors. Any increase in the incentive would also depend on discussions with European institutions regarding greater fiscal flexibility for energy-related expenditure.

FederlegnoArredo’s comments

“We very much welcome the Government’s decision to extend the furniture bonus through 2027 and maintain the current building renovation tax incentives, and we hope that the 65% Ecobonus will also receive the green light from the European Union”, said Elia Vismara, newly appointed president of FederlegnoArredo.

“Over the years, these measures have helped support domestic demand and the performance of the entire supply chain, which is currently facing a challenging international environment, both in established and emerging markets”.

“Equally strategic, pending confirmation of the details in the final legislation, is the extension of the Energy Release scheme to small and medium-sized enterprises that are not classified as energy-intensive. This mechanism provides companies with electricity at reduced, fixed prices in exchange for investments in renewable energy facilities, enabling businesses across the supply chain to reduce their electricity bills and protect themselves against market fluctuations”.

“Our companies would also benefit from the new tax credit for business software, which is essential for encouraging digitalisation, 3D modelling and production management software”.