Industria 4.0 and Transizione 5.0 plans

Industria 4.0 and Transizione 5.0 plans – 2024

The “Transizione 5.0” plan supports global investments in energy-efficient and sustainable production processes, representing a step forward towards the “Industria 5.0” project. It is an evolution of the “Transizione 4.0” plan. With a budget of €6.3 billion for the 2024-2025 period, this measure aims to boost the competitiveness of Italian companies by promoting their digitalization and energy efficiency.

For 2024 and 2025, companies can also benefit from the tax credit for investments in new tangible and intangible capital goods that support the technological and digital transformation of businesses, according to the “Industria/Impresa 4.0” model. To use the tax credit, Legislative Decree no. 39/2024 introduced the requirement to submit certain communications to the Ministry of Business and Made in Italy. These communications can be prepared and submitted through the GSE (Gestore dei Servizi Energetici) portal. The tax credit cannot be combined with the “Transizione 5.0” tax credit, established by Legislative Decree no. 19/2024.

The “Industria 4.0” capital goods tax credit is recognized for investments in new tangible and intangible capital goods that are instrumental to the technological and digital transformation of businesses, according to the “Industria/Impresa 4.0” model, intended for production facilities located within the Italian territory. The tax credit is applicable to investments made until December 31, 2025, or until June 30, 2026, provided that by December 31, 2025, the order has been accepted by the seller and down payments of at least 20% of the acquisition cost have been made.

The tax credit is governed by Article 1, paragraphs 1051-1063 and 1065, of the 2021 Budget Law (Law No. 178/2020), as subsequently amended by Article 1, paragraph 44, of the 2022 Budget Law (Law No. 234/2021).

For the purposes of using the tax credit, Legislative Decree No. 39/2024, which came into force on March 30, 2024, introduced the requirement to submit certain communications to the Ministry of Business and Made in Italy (MIMIT). Therefore, while the tax credit was automatically recognized until March 29, 2024, starting March 30, 2024 the tax credit can only be offset upon prior notification to MIMIT.

The methods and deadlines for submitting the communication were established by MIMIT with its directorial decree on April 24, 2024.

The tax credit cannot be combined with the “Transizione 5.0” tax credit established by Legislative Decree no. 19/2024.

General guidelines for Industia 4.0 (from MISE)

Warning: Law No. 160 of December 27, 2019, concerning the “State Budget for the 2020 financial year and the multi-year budget for the three-year period 2020-2022” redefines the rules governing tax incentives associated with the “National Industry 4.0” plan, specifically those related to investments in capital goods, research and development, technological innovation and other innovative activities and Industry 4.0 training.

As part of this initiative, companies availing themselves of these provisions are required to submit a notification to the Ministry of Economic Development. This notification, it should be noted, is solely for the purpose of enabling the Ministry of Economic Development to acquire the information necessary to assess the progress, dissemination, and effectiveness of the incentive measures.

Therefore, it does not constitute a prerequisite for accessing the benefits, nor does it constitute grounds for denial of the right to the incentives due if the notification is not submitted.

Consistent with the above-mentioned purposes, it should be noted that the notification must be submitted after the end of the tax year in which the investments eligible for the incentives were made.

The format, content, methods and deadlines for submitting the aforementioned communication will be established by a specific directorial decree to be issued soon.

Its purpose

Support and incentivize companies investing in new tangible and intangible capital goods that support the technological and digital transformation of production processes for manufacturing facilities located within the country.

Benefits

For investments in technologically advanced tangible capital goods (Annex A, Law No. 232 of December 11, 2016), a tax credit is recognized in the amount of:

40% of the cost for investments up to €2.5 million.
20% of the cost for investments exceeding €2.5 million and up to the total eligible cost limit of €10 million.
10% of the cost for investments between €10 million and up to the total eligible cost limit of €20 million.

The benefit can be used starting from:

From the year following the entry into service of the assets, for investments in assets other than “Industria 4.0” assets.
From the year following the interconnection of the assets to the company’s production management system or supply network, for investments in “Industria 4.0” assets.
The tax credit may be used exclusively as an offset, in five equal annual installments, reduced to three for investments in intangible assets.

Industria 4.0 and Transizione 5.0 plans