Tax concessions in the Italian building sector grew by 24% in the first seven months of 2016

According to figures published by CRESME, the tax concessions of 50% (for building renovations and furniture purchases) and 65% (for energy improvement) were 24% higher in the first seven months of 2016 than in the same period the previous year.

The Treasury - again based on CRESME figures - applied deductions worth 1.060 billion euros on investments of 16.165 billion euros.

Projections for 2016 as a whole indicate total investments (including VAT) of 29.2 billion euros and 1.7 million applications (1.39 million for building renovation and 328,000 for energy saving).

The CRESME report for the Parliamentary Environmental Committee notes that over the period 1998-2016 the direct cost of the tax incentives to the Italian state in terms of lower revenues amounted to 108.7 billion euros (5.7 billion euros per year), while revenues from tax and contribution came to 89.8 billion euros (4.7 billion euros/year).

Although this corresponds to a deficit of 18.9 billion euros (an annual average of just under 1 billion euros), the total value of the building work generated by the tax incentive scheme amounted to 237 billion euros, equivalent to 12.5 billion euros/year.

If the CRESME forecasts are confirmed, 2016 will mark an all-time high for investments prompted by tax incentives in the building sector, following 27.9 billion euros in 2013, 28.4 billion euros in 2014 and 25.1 billion euros in 2015.