The Transition 4.0 Plan is the initiative through which the Ministry of Economic Development incentivizes innovation by favoring tax breaks in the form of tax credits on investments made by companies in tangible and intangible assets to be used exclusively in compensation.
This pinao has been further renewed to support innovative investments and digital transformation of Italian companies during the period from January 1, 2020 to June 30, 2022.
Details
For investments involving ordinary assets, other than 4.0, the tax credit recognized is 6 percent of the cost in the maximum limit of eligible costs up to 2 million euros. For assets functional to smart working, on the other hand, the rate increases to 15 percent; for intangible assets 4.0 up to 20 percent for investments 2021 up to €1 million; for tangible assets 4.0 on investments 2021, the credit is 50 percent of the cost for investments up to €2.5 million; 30 percent for the portion between €2.5 million and €10 million; and 10 percent for the portion between €10 million and €20 million.
For investments in tangible assets 4.0 related to 2022, the company will instead be entitled to a tax credit equal to:
- 40% of the cost for the portion of investments up to € 2.5 mln;
- 20% for the portion between € 2.5 mln and € 10 mln;
- 10% for the portion between € 10 mln and € 20 mln.
For investment in research, development, innovation and design, the rate is equal to:
- 20% up to a maximum ranging from 3 to 4 million for R&D activities;
- 6% to 10% with a ceiling of 1.5 to 2 million, for technological innovation and design.
The rate goes up to 15 percent for technology innovation projects related to technology transition or digital innovation 4.0;
For investments in training 4.0, the rate is equal to:
- 50% of eligible expenses and up to an annual limit of 300 thousand euros for small businesses;
- 40% for medium-sized enterprises in the limit of 250 thousand euros;
- 30%, again up to the annual maximum limit of 250 thousand euros, for large enterprises.
Facilities can be combined with other funding such as regional, national or European funding such as “de minimis” grants.
The tax credit at the moment can only be used by offsetting in three equal annual installments starting: from the year of entry into operation for investments in non-4.0 capital goods; from the year of successful interconnection for tangible and intangible 4.0 capital goods. An exception is made for non-4.0 investments made as of Nov. 16, 2020, and until Dec. 31, 2021, by individuals with revenues or compensation of less than 5 million euros, for which it can be used in compensation in a single annual installment.
With the Sostegni bis decree, however, it could become possible to assign to third parties, including credit institutions and financial intermediaries, credits accrued by companies in relation to investments in capital goods, both 4.0 and traditional. For now, investments related to the research, development, innovation and design bonus and the Training 4.0 tax credit remain excluded from the credit assignment. After the deletion of the amendment for the possibility of assignment of the tax credit accrued in relation to investments in capital goods under the Transition 4.0 Plan, this possible new option could be reintroduced as part of the discussion of amendments to the Supports bis decrees.
If you are considering Transition 4.0 with the purchase of new handling and production machinery, Whitech can help you in assessing your goals and achieving them. Let’s get in touch today for a specific assessment.
