Economic and Fiscal Additionality in Italian Tax Credit on Dwellings Renovation

Marco Manzo and Daniela Tellone
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Marco Manzo: Ministry of Economy and Finance of Italy
Daniela Tellone: Ministry of Economy and Finance of Italy

Working Papers from Ministry of Economy and Finance, Department of Finance

Abstract: In June 2012, the fiscal policy for the renovation of dwellings has changed considerably with respect to two main aspects: i) the tax credit share has increased from 36% to 50% and ii) the total amount of renovation costs that can benefit of the tax credit increased from 48000 euros to 96000 euros. The aim of this work is to provide an expost analysis of this policy change. The policy effect is evaluated on: the increase in dwellings renovation probability (economic additionality), the increase in the level of renovation expenses and the decrease in underground economy (fiscal additionality). We found that the policy stimulated the likelihood of renovation in terms of fiscal additionality but in terms of economic additionality had a limited effect.

Keywords: Residential Sector; Tax Credit; Dwelling Renovation Policy; Italy (search for similar items in EconPapers)
JEL-codes: D12 E62 H31 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2020-07
New Economics Papers: this item is included in nep-eur, nep-mac and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:ahg:wpaper:wp2020-7

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