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Economic and Fiscal Additionality in Italian Tax Credit on Dwellings Renovation

Author

Listed:
  • Marco Manzo

    (Ministry of Economy and Finance of Italy)

  • Daniela Tellone

    (Ministry of Economy and Finance of Italy)

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.

Suggested Citation

  • Marco Manzo & Daniela Tellone, 2020. "Economic and Fiscal Additionality in Italian Tax Credit on Dwellings Renovation," Working Papers wp2020-7, Ministry of Economy and Finance, Department of Finance.
    • Handle: RePEc:ahg:wpaper:wp2020-7
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Residential Sector; Tax Credit; Dwelling Renovation Policy; Italy;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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