Green bonus: more beautiful terraces and gardens with a discount

Cwhoever is lucky enough to have a garden or a terrace, but above all a minimum of green thumb, will find interesting financial support for their desire to make these spaces perfect. With the so-called Green bonusthe Government is trying to encourage property owners to arrange external green areas.

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Green bonus, what is it

The green bonus is part of the house bonus range and does not consist of money arriving in the account, but the form of support is that of IRPEF deduction of expenses incurred and documented for specific works. To be entitled to the discount it is necessary, in fact, that it is a innovative intervention or that tends to improve what already exists. The works created must be permanent. There ordinary maintenance of existing gardens that do not bring anything new, for example, is not a work included in the bonus.

Up to 1800 euro discount

The green bonus it therefore consists of a “discount” tax: this has been established at 36% on a total amount not exceeding 5,000 euros. He who intends to beautify terraces and gardens owned by him, therefore, will anticipate the money for the interventions which will then be partially returned as a deduction from the IRPEF. The discount maximum obtainable is 1,800 euros that the taxpayer may have for each property he owns for residential use on which he carries out interventions. The amount due as a deduction will then be obtained in 10 annual installments of the same amount (180 euros per year for 10 years if the maximum compensation amount is spent).

Deducted works

They give the right to the bonus extraordinary interventionsthat is, works that are part of an intervention relating to the entire garden or area involved, and that lead to green arrangement ex novo or to the renewal of the existing. In order, the following types of work are eligible for deductions:

  • green arrangement of private open areas of existing buildings, real estate units, appurtenances or fences;
  • redevelopment of turf (those used for profit-making sports are excluded);
  • improvement or construction of irrigation systems and construction of wells;
  • creation of hanging gardens, green roofs, irrigation systems and wells;
  • restoration works;
  • recovery interventions of gardens of historical and artistic interest pertaining to listed properties;
  • expenses for the design and maintenance of green areas provided that the related execution works are carried out.

Those are also included among the expenses for which the deduction is allowed for design and maintenance connected to the execution of the interventions listed above. The tax benefit is not provided for properties with a purpose other than residential, such as shops or offices which are therefore excluded.

Non-deductible works

The interventions that do not fall within the tax measure concern all those works carried out on one’s own “in economy”, such as the arrangement of plants in pots and interventions concerning the ordinary maintenance of existing gardens. Cut off from the relief then there are the costs of purchasing tools or specific equipmentsuch as lawnmowers, shovels, scissors, rakes, etc.

Who is entitled to the Green Bonus

Taxpayers who own or hold the property on which the interventions are carried out and who have incurred the related expenses are entitled to the relief. Even the cohabiting family members of those who own or hold the property can access the green bonus, if they bear the costs and the invoices and bank transfers are made out to these subjects.

In summary, the green bonus goes to:

  • owners of a property;
  • naked owners;
  • holders of a real right of enjoyment on the property subject to intervention (usufruct, use, dwelling or surface);
  • tenants (such as rented tenants);
  • borrowers of a property;
  • public housing;
  • entities, public or private, that pay IRES

Trackable payments

Finally, to access the deduction, it is necessary for the payments to be traceable, through the execution of a “talking bank transfer“. In fact, to be subject to deductions, payments must be made through a system that keeps track of:

  • reason for the payment
  • tax code of the beneficiary of the deduction
  • VAT number or tax code of the person to whom the transfer is addressed.

Therefore, in addition to the so-called talking bank transfer, the methods for keeping track of operations can also be computerized, such as through digital payments.

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