Measures are strengthened and become structural
The new National Transition 4.0 Plan is the first brick on which the Italian Recovery Fund is based. The investment consists of approximately EUR 24 billion for a measure that will become structural, with the strengthening of all deduction rates and an important anticipation of the timeframe.
The new National Plan Transition 4.0 has two main objectives:
- Stimulating private investment;
- Provide stability and certainty to businesses with measures that take effect from November 2020 to June 2023.
New duration of measures
- The new tax credits are foreseen for 2 years;
- The measure is brought forward to 16 November 2020;
- The possibility, for contracts for the purchase of capital goods defined by 31/12/2022, to benefit from the credit with the payment of a deposit equal to at least 20% of the amount and delivery of the goods in the following 6 months (therefore, within June 2023) is confirmed.
Anticipation and reduction of compensation with higher tax advantage in the year
- For investments in capital goods "ex super" and in intangible goods not 4.0 carried out in 2021 by persons with revenues or remuneration of less than 5 million euros, the tax credit is available in one year;
- Immediate offsetting (from the current year) of the credit related to investments in capital goods is allowed;
- For all tax credits on tangible capital goods, the use of the credits is reduced to 3 years instead of the 5 years provided for under current legislation.
Increased ceilings and rates (tangible and intangible assets)
- Increase from 6% to 10% for all tangible capital goods credit (ex super) for the year 2021 only;
- Increase from 6% to 15% for investments made in 2021 to implement agile working;
- Extension of the credit to non 4.0 intangible assets with 10% for investments made in 2021 and 6% for investments made in 2022.
Increased ceilings and rates (Tangible assets 4.0)
- For expenditure below EUR 2.5 million: new rate of 50% in 2021 and 40% in 2022;
- For expenditure above EUR 2.5m and up to EUR 10m: new rate of 30% in 2021 and 20% in 2022;
- For expenditure above EUR 10 million and up to EUR 20 million, a new ceiling has been introduced: 10% rate in 2021 and 2022.
Increased ceilings and rates (Intangible assets 4.0)
- Increase from 15% to 20%;
- Ceiling from €700,000 to €1 million.
Research & Development, Innovation, Design and Green
- R&D: increase from 12% to 20% and ceiling from EUR 3 million to EUR 4 million;
- Technological innovation: increase from 6% to 10% and ceiling from 1.5 million to 2 million;
- Green and digital innovation: increase from 10% to 15% and ceiling from 1.5 million to 2 million;
- Design and aesthetics: increase from 6% to 10% and ceiling from 1.5 million to 2 million.
Credit Training 4.0
- Extension of the tax credit to expenses incurred for the training of employees and entrepreneurs;
- It is recognised within the two-year period covered by the new measures (2021 and 2022).