Interview with Antonio Arezzi, a lawyer with Studio DWf, Milan office, specializing in Real Estate and advising in residential and commercial real estate acquisition and sale and purchase agreements.
Building bonuses: what is the news on the credit and invoice discount assignment?
The subject matter of building bonuses has recently gone through several novelties that have changed its scope and mode of action. Among the main changes is the intervening measure that provides for the abolition of the option to exercise credit assignment or invoice discounting for super bonus and minor building bonus interventions after February 17, 2023.
However, there are exceptions: the former concerns interventions carried out by non-profit organizations or autonomous institutes of social housing; the latter refers to all interventions related to the super bonus for which the relevant Cila (Notices of Commencement of Sworn Work) documentation has already been registered before February 17, 2023. In addition, regarding condominiums, an assembly resolution that approves the building intervention subject to a bonus or super bonus is required.
Thus, as of February 17, 2023, those who want to benefit from building bonuses can only have a related tax credit, as they can no longer exercise credit assignment or invoice discounting.
What are the main protections for those taking advantage of building bonuses?
When one decides to make interventions subject to building bonuses, one will enter into a proper contract with the company performing the interventions. However, since it is a contract, it is necessary to take certain precautions and protections: mainly, it is required to verify the professional quality and the contractual texts of the ancillary figures to the contracts, such as the director of works, the person in charge and the safety coordinator, as well as it is necessary to verify the reliability of the persons who will have to carry out and perform the tax and technical asseverations required by law to benefit from the building bonuses.
Equally important is the verification of the texts of the contractual policies with the reading of the texts of the ceilings and deductibles and the presence of the insurance policies required by law, as well as the verification of the presence of the clause that provides for a final deadline for the performance of the work, a clause for the penalty governing any delays or defaults by the contractor and, finally, the clause on the payment methods that you will want to adopt.
How does the assignment of credit work?
The credit assignment consists of a threefold option in the hands of the taxpayer. He can use the tax credit independently, offsetting it against his taxes; he can exercise invoice discounting, assigning the credit to his contractor (in this case, he will not pay the contractor); he can assign the credit to a third party, paying the contractor in this circumstance.
The main protections are those pertaining to the proper execution of an assignment of the credit agreement and the creditworthiness of one’s counterparty in relation to the performance of the work if it is performed by invoice discount or assignment of credit.
Why rely on a general contractor?
The choice to rely on a general contractor pertains to assessing prudence and reliability within the framework of super bonuses and minor building bonuses. It is a figure that allows optimizing the relationships between all stakeholders involved. Indeed, relying on a general contractor means interacting with a single actor, who will become responsible for the work. Before depending on a general contractor, however, it is advisable to check the latter’s track record and financial reliability.
What are the main insurance guarantees to consider?
Check for the presence of the legally required insurance policies for construction work, such as the one for third-party liability Rct, and Rco, i.e., liability for contractors. There must also be a so-called all-risks insurance policy, which covers all risks related to the execution of works on the construction site. Finally, it may be advisable to take out a “ten-year posthumous” policy, which, although not required by law in this type of intervention, could provide excellent protection for the client by covering any damage or defects for ten years after the execution of the work.
