Financial Times

Italy’s tax credit experiment puts Meloni government in a bind

Italy's 'Superbonus' tax credit scheme for home renovations has led to a liquidity crunch for small construction businesses, leaving 32k companies at risk of going bust.

Italy's 'Superbonus' tax credit scheme for home renovations has caused a liquidity crunch for small construction businesses.
The scheme encouraged property owners to upgrade the energy efficiency of their homes with transferable tax credits.
After the scheme was tightened, thousands of small construction businesses were left with €20bn of frozen tax credits stuck on their books.
32,000 small construction companies are at risk of going bust unless the government helps them unload their accumulated tax credits.
The Superbonus has cost about €110bn, or about 6% of GDP, but emissions have remained at the same level.

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