The 2020 budget maneuver is not yet law, but the text out of the Senate it is already the definitive one. To stay within the deadlines and avoid the provisional exercise - which would be triggered automatically in the event of non-approval by 31 December - the government will secure the text with confidence also in the Chamber, which therefore will not be able to modify the provision and will only carry out a function of ratification . So far, in the history of the Republic, the third parliamentary passage of the budget law had only been skipped on three other occasions: in 2010, 2011 and 2016.
But what's in the 2020 maneuver? Here are the most important measures.
MANEUVER 2020: THE KEY MEASURES
NO VAT INCREASE (FOR NOW)
As almost always in recent years, the main measure of the Budget law is, so to speak, negative. That is, it does not concern the introduction of a pro-growth rule, but the cancellation of an automatism that would have recessive effects. The government has found the 23 billion needed to prevent the increases in VAT rates envisaged by the safeguard clauses from 23 January. However, this does not mean that the problem is solved forever, on the contrary: to avoid the increase in the tax on consumption, another 2020 billion will be needed in 20, then another 2021 in 27 and, according to a technical report by the State Accounting Office, even 2022 in XNUMX.
CUT TO THE TAX WEDGE
For the reduction of the tax wedge (i.e. the difference between gross and net salary) 3 billion euros are allocated for 2020 and 5 billion starting from 2021. The measure will enter into force from July and will concern those who earn less than 35 thousand euros gross per year, or about 15 million workers who will receive an average of one hundred euros more per month. But be careful: this sum includes the 80 euros of the Renzi bonus for those who already receive it, i.e. employees with incomes from 8 to 26.600 euros. The real benefit is therefore for incomes between 26.600 and 35 thousand euros, so far excluded from the 80 euro bonus.
GREEN NEW DEAL
The government has created a 4,24 billion fund to be used between 2020 and 2023 for the development of a "Green New Deal", i.e. an investment plan in environmental policies. At least 150 million for each year of the three-year period 2020-2022 will be used to reduce greenhouse gas emissions.
MANEUVER 2020: NEW TAXES
PLASTIC TAX
The new tax will come into force in July and, in its latest version, is worth 45 cents for every kilogram of single-use plastic or tetrapak packaging. Exemption is foreseen for recycled plastic products and for those composed of several materials with a plastic component of less than 40%.
SUGAR TAX
The tax on sugary soft drinks is worth 10 cents a liter and will start from October 2020 instead of January 175,3, as originally planned. The postponement entails a reduction in revenue for the State of XNUMX million euros.
COMPANY CARS
Like the sugar tax, the levy on company cars will also start from July 2020, but only on newly registered vehicles. In essence, the rule concerns income in kind attributed to employees for the possibility of using the company car even in their free time. Today the value of the benefit that ends up in the paycheck is equal to 30% of the annual cost per kilometer determined on the basis of the Aci tables for an annual journey of 15.000 kilometres. From July these rates will apply:
- 25% on company cars with C02 emissions lower than 60 g/km and 30% on those higher than 60 g/km and lower than 160 g/km.
- 40% in 2020 and 50% from 2021 for vehicles with polluting emissions above 160 g/km and below 190 g/km.
- 50% in 2020 and 60% from 2021 for cars with emissions above 190 g/km.
EXCISE DUTIES ON FUEL: STANGED FROM 2021
To recover the revenue lost with the changes to the original versions of the plastic tax and company car tax, an increase in excise taxes on fuel is expected which will lead to an increase in state revenues of approximately 1,2 billion in 2021 and 1,7 billion in 2022.
LUCK TAX
News also coming for games. From March XNUMX, the tax levy on winnings will rise according to this scheme:
- 20% on winnings over €500 for each game (including scratch cards);
- 20% on winnings over €200 with new slots, starting from 15 January;
Finally, the percentage of the stakes to be allocated to jackpots drops to 65%.
ROBIN TAX
A 3% IRES surtax is on the way for public concessionaires. Something similar to the Robin Tax introduced in 2008 by the Berlusconi government (and later declared unconstitutional by the Consulta). The new tax, which will bring IRES from 24 to 27%, will be in force for the three-year period 2019-2021 and will affect motorway, port, airport and railway concessionaires. Concessions for the production and distribution of electricity, mineral water, radio, TV and telecommunications are excluded.
MANEUVER 2020: THE BONUSES
FACADE BONUS
A new 90% tax deduction arrives on the renovation, restoration and even ordinary maintenance of the external facades of buildings. It will be valid only on personal income (the extension to hotels has been skipped) for all private buildings (from villas to condominiums), in all cities (from villages to large metropolises) and in every location (from suburbs to historic centers ). There are no spending or income limits, but for all the details it will be necessary to wait for the application circular from the Revenue Agency, which will presumably arrive at the beginning of 2020.
ECOBONUS
The ecobonus is extended to 2020. It is an Irpef or Ires deduction to which you are entitled when interventions are carried out that increase the level of energy efficiency of buildings. For most jobs, the eco-bonus is 65%, but in some cases it goes down to 50% (windows, sun screens and air conditioning systems). The eco-bonus must be divided into 10 equal annual installments. For the complete scheme of the maximum deductions on individual interventions, refer to guide of the Revenue Agency.
As far as boilers are concerned, the incentive is not applicable to less efficient ones (energy class B). For class A condensing ones, however, a 50% tax discount is provided, which rises to 65% if advanced thermoregulation systems are also fitted.
For condominiums, the eco-bonus rises to 70 or 75% when certain energy performance indexes are achieved. The scheme is as follows:
- 70% if the interventions concern the envelope with an incidence of more than 25% of the gross dispersing surface of the same building.
- 75% when the interventions improve the winter and summer energy performance and provided that they achieve at least the average quality indicated in the decree of the Minister of Economic Development of 26 June 2015.
In these two cases, the increased discount can be applied to a maximum cost of 40 euros for each real estate unit in the building.
In addition, the possibility of benefiting from it is reintroduced discount directly on the supplier invoice, but only for works of at least 200 thousand euros on the common parts of the condominiums.
RENOVATION BONUS
The Irpef deduction of 50% on expenses incurred to renovate both individual real estate units and the common areas of condominiums has also been extended. There is a spending limit of 96 euros, so the maximum discount is 48 euros.
In the case of single dwellings, not only the owners can take advantage of the bonus, but also all the holders of real/personal rights on the properties (usufructuaries, tenants, borrowers, members of cooperatives), provided they bear the costs for the renovation. The same applies to cohabiting family members, separated spouses, members of civil unions and cohabiting partners more uxorio of whoever owns or holds the property.
As for condominiums, for interventions carried out on the common areas, the deduction is due to the individual condominium within the limit of the share attributable to him, provided that this has been paid to the condominium within the deadline for submitting the tax return.
MOBILE BONUSES
The furniture bonus continues to be linked to the renovation bonus. Those who started work inside the house by 2019 will be able to benefit in 2020 from a tax discount for the purchase of furniture and large appliances of a class no lower than A+ (A for ovens). The deduction is equal to 50% and must be calculated on a maximum expenditure of 10 thousand euros (including money for transport and assembly). The deduction must be divided into ten equal annual installments. To take advantage of the subsidy, the purchase of furniture and large appliances must have taken place after the start date of the works.
SUPER AND HYPER DEPRECIATION INDUSTRY
Super-depreciation and hyper-depreciation granted in recent years for the investments envisaged by the Business Plan 4.0 are transformed into a tax credit. Here are the percentages:
- 40% over 5 years on investments of up to 2,5 million euros for the assets necessary for the technological and digital transformation of companies;
- 20% on the same investments, but for the portion of investments exceeding 2,5 million up to the maximum limit of 10 million;
- 15% on investments of up to 7 thousand euros in intangible assets, such as software;
- 6% on all other investments up to 2 million.
ELECTRONIC PAYMENTS
With the aim of encouraging electronic payments and thus combating tax evasion, the Government has allocated three billion euros a year in the two-year period 2021-2022 to partially reimburse expenses made with debit or credit cards.
MILK BONUS
For women who become mothers but cannot breastfeed, there is a bonus for the purchase of formula milk. The subsidy is valid up to a maximum amount of 400 euros and only up to the sixth month of the newborn's life.
MANEUVER 2020: SOCIAL RULES
FUND FOR THE FAMILY
A "Universal allowance and family services fund" is set up, with a budget of 1,044 billion for 2021 and 1,244 billion a year from 2022. All family policies will flow into this fund, which will be subject to an overall review .
SCAM BANKS
The deadline by which savers defrauded by banks can submit a request for reimbursement to the Compensation Fund has been postponed from 18 February to 18 April 2020.
SAVE HOME
From 2020, new securitization companies with a social purpose will be born which, in collaboration with associations and non-profit organizations, will purchase mortgages and houses at risk of foreclosure from banks, but instead of expelling tenants and selling the properties at auction, they will allow families to continue live for rent.
ORPHANS FEMINICIDE
In 2020 there is also an extra million euros for minors orphaned following a feminicide. The money is divided equally between scholarships and financial support for foster families.
FOOD AID FUND
An additional three million euros are also on the way in the three-year period 2020-2022 for the distribution of foodstuffs to the poor.
EMPLOYMENT ACCIDENT VICTIMS FUND
The fund for families of victims of serious occupational accidents increases by one million in 2020, by two million in 2021 and by three million in 2022.
FUND FOR VICTIMS OF MAFIA AND USURY
One million in 2020 for the Revolving Fund for solidarity with victims of mafia-type crimes, extortion demands, usury and violent intentional crimes.
FUND FOR UNACCOMPANIED MINORS
Allocated one million euros a year from 2020 to increase the Fund for unaccompanied foreign minors.
AMAZING CONTRAST
The maneuver also contains a measure proposed by Matteo Salvini: the Urban Security Fund of the Municipalities will receive 15 million in the three-year period 2020-2022 for the prevention and contrast to the use of narcotic substances.
COURSES AGAINST BULLYING
One million euros a year in the three-year period 2020-2022 for the training of teachers on how to combat the phenomena of bullying, cyberbullying and gender discrimination.
PLAN AGAINST GENDER VIOLENCE
Another 4 million per year from 2020 to 2022 to finance the extraordinary action plan against sexual and gender-based violence.
PINK QUOTES
Women's quotas increase from 30 to 40% in the boards of listed companies.
MANEUVER 2020: OTHER MEASURES
HEALTHCARE
From 2020 September 185, the "superticket", i.e. the share of the cost of services borne by citizens, will be abolished. For this purpose, 2020 million have been allocated for 554 and 2021 million a year starting from XNUMX.
Furthermore, from 2020 an extraordinary three-year plan of 1,356 billion will arrive for the disabled and non self-sufficient people.
Lastly, the fund for healthcare construction and technological modernization of public healthcare assets increases by two billion.
INFRASTRUCTURE
Investments in infrastructure, public works and building safety are growing. The contributions granted for this purpose to local authorities and autonomies increased from 4,9 to 8,8 billion euros. Also arriving is 2,78 billion euros to be used between 2020 and 2034 for the safety of public buildings, roads, bridges and viaducts. An additional 6,1 billion euros will go to metropolitan cities and provinces to finance the maintenance of roads and schools in the same period. Finally, almost a billion has been allocated for the 2026 Winter Olympics and funding until 2022 for the Ryder Cup.
SPENDING REVIEW
As regards spending cuts, the maneuver provides for a reduction in the funds allocated by the Prime Minister and to the ministries by 977 million in 2020, 967 million in 2021 and 953 million starting from 2022.
