Following the publication in the Official Journal No. 52 (general series) of 2 March 2024 of Legislative Decree No. 19/2024 and the implementing provisions of the NRRP, the new tax credit for investments made in the two-year period from 2024-2025 in relation to the “Transition 5.0 Plan” was given the go-ahead.

The measure is aimed at supporting companies in their digital and energy transformation and is governed by Article 38 of the decree law. All resident companies and permanent establishments based in Italy are eligible for the grant, regardless of their legal form, economic sector, size and the tax regime they adopt for determining business income. In exactly the same way as the Transition 4.0 Plan, the regulation lists in detail circumstances in which companies are excluded, such as when they are in voluntary or compulsory liquidation.

The bonus recognises new investments made from 2024 to 2025 in production facilities based in Italy, provided that the resulting innovations lead to a reduction in the energy consumption of the production unit of at least 3%, rising to 5% if calculated on the process involving the investment. Specifically, investments in new tangible assets and capital goods indicated in Annex A and Annex B to Law No. 232/2016 are eligible. The decree specifies in detail the features of the additional assets that qualify for the benefit. Expenditure on staff training, where such training is aimed at acquiring or consolidating skills in technologies relevant to implementing the digital and energy transition of production processes, is eligible for the tax credit within certain limits. The condition is that the training is carried out by external parties, identified by decree of the Ministry of Enterprises and Made in Italy. The decree also specifies that the benefit is conditional on the presentation of appropriate certificates issued by an independent assessor.

The bonus amounts to:

• 35% for investments up to 2.5 million euros

• 15% of expenditure for investments exceeding 2.5 million euros and up to 10 million euros

• 5% of expenditure for investments exceeding 10 million euros and up to a maximum of 50 million euros of eligible costs per year for each beneficiary enterprise.

Where there is a reduction in energy consumption of more than 6% and 10%, there is an increase in the tax credit of up to 40% and 45%. Energy savings are calculated on an annual basis in relation to the previous year. For new companies, average annual energy consumption in a counterfactual scenario is taken into account. To qualify for the tax credit, an application must be submitted electronically using a standard template made available by the Gestore dei Servizi Energetici (GSE) and with the prescribed documentation (paragraph 11 of Article 38), together with a communication of the description and cost of the investment project. Once the GSE has checked the documentation, it sends the Ministry the list of companies eligible for the benefit and the amount booked.

The credit can only be used for offsetting taxes via the F24 form submitted through the electronic services of the Revenue Agency, five days after the GSE has sent the list of beneficiaries to the Agency. Any residual amount may be utilised in subsequent tax periods in five equal annual instalments. A decree to be adopted by the Ministry of Enterprises and Made in Italy, in agreement with the Ministry of Economy and Finance, and subject to the go-ahead from the Ministry of the Environment and Energy Security, will set out the rules for the implementation of the tax credit.