In what seismic zones is the sisma bonus scheme applicable?

Buildings located in seismic zones 1, 2 and 3 may be eligible for the tax credits.

New seismic classification of buildings

As of February 2017, there is a seismic classification system in effect for buildings, with 8 ratings, ranging from A+ (best condition) to G (worst condition).

What is the procedure for calculating the tax credit?

The seismic classification prior to and following the work has to be calculated. The tax credit percentage is determined, following the improvements made, by calculating the average annual loss.

What will the tax credit percentage be?

In the event the seismic work allows the building to be improved by one seismic risk rating, the credit percentage will be 70%, while if it moves up two ratings, the credit will be 80%. Work that does not result in any improvement in the seismic rating will be entitled to a 50% credit.

How many years will the tax credit be spread over?

Over the 5 years following the work.

Where is it deducted from?

It is deducted from the gross company income tax.

What companies are eligible for the tax credits?

All companies, with no limits on size, who have a contract entitling them to use of the building (owner, tenant, etc.)

Is there any special application or authorization procedure involved?

Not, it is automatic. It is a tax credit.

What methods are used to calculate the seismic rating?

There are two options: simplified and conventional. When dealing with precast concrete buildings, the procedure is as follows: SIMPLIFIED: This is a simplified criterion that, with no seismic analysis performed, allows the building to automatically be moved up one rating by just performing local strengthening work (connection between structures and infill panels), in addition to restraining any shelving and systems/services (if any, and if not checked for earthquake resilience). Improvement by two ratings is not possible with this system. This method is not recommended except under special circumstances where the use of the conventional system is problematic (e.g. portion of a building being part of a complex) CONVENTIONAL: This is the more accurate system, drawing on a specific analysis carried out by means of modelling software to determine the structure's level of resilience relative to current code. Precast concrete structures must be checked both overall (by means of modelling) and point by point to determine how the structures' connections are secured. If there are no connections or they are inadequate, they determine the structure's current level of safety. With this system, the seismic rating can be improved by as much as two or more categories.

How does the invoice discount work?

We talk about the assignment of credit when the beneficiary (client) transfers the tax deduction quota to a third party (credit institution or other subjects). An invoice discount is where the beneficiary (client) transfers the credit amount directly to the supplier, paying just the difference. It is entirely up to the client to decide whether this is the best solution for them.

Sisma Bonus

Sisma Bonus scheme: how to reduce your costs for earthquake improvement work

Over the years of Seriana’s activity, a high level of specialization has been achieved in the field of seismic redevelopment interventions on prefabricated industrial warehouses, and the company has therefore decided to operate exclusively on this type of structure.

By staying on top of changes in the regulatory and tax field, we can assess whether clients are eligible for a tax break in the form of an invoice discount under Italy’s recent legislation.

In Italy, if you incur or have incurred costs, over the 2020 to 2021 period, for earthquake improvement work, you can take advantage of the:

Invoice discount under the Sisma Bonus Scheme

Credit transfer of the deduction due to a credit institution or other financial entity, with the possibility of immediate recovery of the portion subject to the deduction;

Credit transfer

Using the “invoice discount” method, transferring the amount corresponding to the tax credit to Seriana S.p.A. and just paying the difference.

The document is produced specifically for precast concrete factory buildings.

With the budget bill for 2017, the Italian government introduced the SISMA BONUS scheme, which aims to encourage people to have seismic improvement and retrofit work done on existing buildings. With the approval of seismic classification guidelines, said bonus also applies to boost credits to 70% and 80% (75% and 85% in the case of work on apartment buildings, but this is not the specific case for factory buildings).

Reference standards

The relevant Italian law is number 232 del 11/12/2016.

Dettaglio intervento di adeguamento con sisma bonus

Sisma Bonus scheme FAQs

In what seismic zones is the sisma bonus scheme applicable?

Buildings located in seismic zones 1, 2 and 3 may be eligible for the tax credits.
New seismic classification of buildings

As of February 2017, there is a seismic classification system in effect for buildings, with 8 ratings, ranging from A+ (best condition) to G (worst condition).
What is the procedure for calculating the tax credit?

The seismic classification prior to and following the work has to be calculated. The tax credit percentage is determined, following the improvements made, by calculating the average annual loss.
What will the tax credit percentage be?

In the event the seismic work allows the building to be improved by one seismic risk rating, the credit percentage will be 70%, while if it moves up two ratings, the credit will be 80%.
Work that does not result in any improvement in the seismic rating will be entitled to a 50% credit.
How many years will the tax credit be spread over?

Over the 5 years following the work.
How long will it be in effect?

Until 31/12/2024.
Where is it deducted from?

It is deducted from the gross company income tax.
What companies are eligible for the tax credits?

All companies, with no limits on size, who have a contract entitling them to use of the building (owner, tenant, etc.)
Is there any special application or authorization procedure involved?

Not, it is automatic. It is a tax credit.
What methods are used to calculate the seismic rating?

There are two options: simplified and conventional.
When dealing with precast concrete buildings, the procedure is as follows:
SIMPLIFIED:
This is a simplified criterion that, with no seismic analysis performed, allows the building to automatically be moved up one rating by just performing local strengthening work (connection between structures and infill panels), in addition to restraining any shelving and systems/services (if any, and if not checked for earthquake resilience).
Improvement by two ratings is not possible with this system.
This method is not recommended except under special circumstances where the use of the conventional system is problematic (e.g. portion of a building being part of a complex)
CONVENTIONAL:
This is the more accurate system, drawing on a specific analysis carried out by means of modelling software to determine the structure’s level of resilience relative to current code.
Precast concrete structures must be checked both overall (by means of modelling) and point by point to determine how the structures’ connections are secured. If there are no connections or they are inadequate, they determine the structure’s current level of safety.
With this system, the seismic rating can be improved by as much as two or more categories.
How does the invoice discount work?

We talk about the assignment of credit when the beneficiary (client) transfers the tax deduction quota to a third party (credit institution or other subjects).
An invoice discount is where the beneficiary (client) transfers the credit amount directly to the supplier, paying just the difference.
It is entirely up to the client to decide whether this is the best solution for them.