Charging infrastructure: Relaunch Decree tax deductions

Installing an EV charging station now entitles apartment buidings and single-family home owners to a 50% tax deduction on purchasing and installation costs which can also be boosted to 110% under the Rilancio (“Relaunch”) Decree’s Superbonus scheme

Published on 30 June 2020

Tax incentives for EV charging infrastructure under Superbonus scheme

Boosting the spread of sustainable mobility, particularly electric, is one of the objectives deemed to be of strategic importance for Italy in the wake of the Covid-19 crisis. The same applies, of course, to the need to rethink our transportation system in order to guarantee that social distancing rules can be respected.  

The Rilancio (“Relaunch”) Decree initiated a slew of different measures to encourage to the purchase of electric bikes, scooters and cars, either through new norms or the enhancement of existing incentives. It has also created highly incentivised new opportunities to install charging infrastructure for electric cars, such as stations and wall boxes.  

The 2019 Budget Bill had already introduced tax deductions spread over 10 annual amounts and adding up to 50% of the purchase and installation costs of the aforementioned. The 110% Superbonus offers tax deductions for a series of types of work to both apartment buildings and single family homes used as primary residences. The deduction is available on work that improves a building’s energy efficiency rating by at least two classes or brings it up to the same standard as the highest class.

Furthermore, apartment buildings that decide to pursue Superbonus work defined as “major”, basically the installation of thermal insulation or cladding or a centralised condenser boiler, can also extend the tax deduction to up to 110% of the purchase and installation of EV charging stations.

The ceiling on permitted expenses has not been changed and remains at €3,000 for the purchase and making operational of charging infrastructure or relative increases in power. The power of the devices must be over 3.7 kW and up to a maximum of 22 kW. The work incentivised through the Superbonus has the added advantage of being compensated for over five years, rather than the 10 that applies for the 50% deduction.  

One interesting option is to apply for the charging infrastructure incentive for individual private car parking garages at the same time as major works for the entire building, which would allow the installation of a higher number of charging stations.

Another substantial innovation introduced under the Rilancio (“Relaunch”) Decree is the possibility of passing on tax credits obtained to a third party which may be the supplier, installer, an intermediary or even a bank, or to  obtain a discount on your invoice from your supplier to the amount of the deduction you are entitled to. Thus, in the case of a 110% deduction, the invoice amount would be zero.  

The Decree has broadened the spectrum of applicants who can acquire the credit, including banks. It also stipulates that access to the measure is permitted only after online communication with the Italian Revenue Service.