Efforts are underway for the enactment of the Decree Law regarding the super bonus, which is tax deduction, in the renovations that increase the energy efficiency of houses and apartments, in the Turkish Grand National Assembly. On Thursday, March 30, the Chamber gave the green light to the issue of confidence in the decree amending the mechanism of tax credits and super bonuses accrued from construction works. The final arrow from Montecitorio was set late Tuesday morning, April 4 (relevant agendas Monday). The provision will then go to Senate review: it must be passed into law by April 17. A total of sixteen amendments have been approved by the House Finance Committee so far. And now the final vote is awaited.
One of the innovations introduced is about detached houses. As a matter of fact, the finance commission gave the green light to extend it until September 30, 2023 for those who completed at least 30% of the works by the same date in 2022. Therefore, there will be more time to finalize the expense and make the deduction. He takes advantage of 110%. Also, in order to save 2022 transfers, those who do not sign the transfer agreement by 31 March are likely to notify the Revenue Service with the so-called “bonus discount”: that is, by paying a fine until 30 November. 250 euros.
The transfer and discount on the bill remains for the removal of architectural barriers and also for public housing institutes (IACP), non-profit organizations and the third sector, as well as work in buildings affected by seismic events, as well as Flooding of Brands. For purchasers of super bonus credits, the joint and several liability shield is further expanded to include all transferees who purchase credit from a bank. In addition, there is an extension of use from four to ten years for banks and companies that purchase loans. But after discussions about the “quote” of a similar measure designed to help reduce revenues above all else, the possibility of the cut being extended to ten years was also recognized for taxpayers without sufficient financial capacity.
To solve the problem of non-performing loans (€19 billion), the hypothesis is making progress towards resorting to a “financial tool” that can buy and resell them, restore liquidity to the system and lift a deadlock that has been under control for several months. businesses and citizens. However, a “swap” with BTPs (long-term treasury bonds) is also being considered. The “vehicle” was to include large public companies under the leadership of Enel X, thereby reaching out to the government.
Meanwhile, the executive took a pledge to resume borrowing, by working on ‘spiritual persuasion’ on banks and institutions. Banks, financial intermediaries and insurance companies that have exhausted their financial capacity will be offered the opportunity to use loans to subscribe to ten-year long-term BTP issuances and save up to 10% of loans at an annual discount. The measure applies to responses up to 2022 and it should be noted that the first use can be made in relation to emissions from 1 January 2028.
The financial instrument hypothesis has been in the air for days, but first we waited to see how things in Parliament would unfold. Revealing was possible after the changes were seen to be on the right track. Enel X assures that the structural solution is “available” for substandard construction loans: It’s a “financial tool” with a plan that the company has “already tested in limited volumes with some financial partners”. CEO Francesco Venturini said: “We are almost ready.
The main changes brought up to date in the review carried out by the Chamber are briefly explained below.
- Villas and detached houses – Extension of 110% building super bonus until September 30, 2023 if 30% of the work was carried out by September 30 last year.
- Free construction – In works that do not require a permit or other qualifications, you can continue to benefit from the discount on the invoice or the credit transfer for the costs incurred for the interventions with the date of 17 February 2023 (entry date). The advances are not paid by the transferor and the transferee against his/her own approval, which certifies that the works have started before this date.
- Architectural Barriers – Regulations regarding withholding tax deduction and credit transfer were introduced for expenditures made for the elimination of architectural barriers.
- Seismic areas – Credit transfer or discount on bill continues to apply for super bonus related interventions for work in areas classified as high or medium seismic risk included in building improvement or urban regeneration plans approved by city councils before 17 February, and for energy saving and anti-seismicity of buildings contributes to harmony.
- Flooded areas of Marche – Responses to properties in Marche that were damaged by the floods in 2022 and declared a state of emergency may continue to benefit from credit transfer or utility reduction.
- Iacp and onlus – Iacp (autonomous mass housing institution), non-profit buildings and construction works on cooperatives (except for superbonus) continue to provide credit transfer or discount on the invoice, provided that the members agree. No duty or duty compensation was given to the members of the board of directors.
- Variations – Projects of change to Cila (sworn notice of commencement) are eligible for 110% deduction and can use credit transfer or discount on invoice, even if submitted after February 17.
- Credit Compensation-Btp – Banks, insurance companies and financial institutions that have exhausted their tax capacity will be able to use the 2022 tax credits resulting from building bonuses to purchase Btp with a maturity of at least ten years. Up to 10% of annual discounts can be used for BTP purchases. Ordinary issued BTPs can be subscribed as of January 1, 2028.
- “Save the loans” rule – The rule came to “save” the loans that were accrued in 2022 and were at risk of expiration due to the failure to define the transfer agreement with the bank on March 31, 2023 and the relevant communication from the Revenue Administration. With an amendment made by the rapporteur, it has been stipulated that the credit assignment can be notified to the Revenue Administration, even if the assignment agreement has not been concluded.
- Joint and several liability – Transferees who purchase loans derived from building bonuses from a bank are excluded from joint and several liability in the event of unfair receipt of subsidies, if the bank has issued a promissory note that it has specific documents related to the work approving the loan. .
- Super bonus discounts of up to ten years – For those who use the super bonus without credit transfer or invoice reduction, it is possible to spread the relevant tax credit over ten years instead of four or five years. The rule was introduced so that those with lower incomes could take full advantage of the tax cut and were incompetent.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
