Italy — Reduction of Building Renovation Tax Deductions (Budget Law 2025)

Italy's Budget Law 2025 (Legge 207/2024) cuts tax deductions for building renovations from 50% to 36% in 2025 and 30% in 2026–2027. The former Superbonus (110%) was the primary driver of the renovation boom; its phased withdrawal significantly reduces demand for renovation services and associated materials. The Agenzia delle Entrate administers the scheme.