Industry 4.0 tax credit

Thanks to the Budget Law 2021 (or Transition Plan 4.0) incentives grow and the time windows for the application of tax credit for those who decide to invest in Industry 4.0 increase.

Among the latest changes, therefore, two relevant aspects emerge:

The increase of the rates (with the exception of those involving training);
The extension of the tax credit until 2022.
According to art. 185 of the Budget Measure, the following may apply for the tax credit:

“All companies resident in the territory of the State, including permanent establishments of non-residents, regardless of their legal form, the economic sector they belong to, their size and the tax regime for determining the company’s income, which makes investments in new capital goods intended for production facilities located in the territory of the State.”

Tra le ultime novità emergono quindi due aspetti rilevanti: 

  • L’aumentare delle aliquote (ad eccezione di quelle che coinvolgono la formazione);
  • La proroga del credito d’imposta fino al 2022. 

Secondo quanto riportato dall’art. 185 della Manovra di Bilancio, possono richiedere l’applicazione del credito d’imposta:

“Tutte le imprese residenti nel territorio dello Stato, comprese le stabili organizzazioni di soggetti non residenti, indipendentemente dalla forma giuridica, dal settore economico di appartenenza, dalla dimensione e dal regime fiscale di determinazione del reddito dell’impresa, che effettuano investimenti in beni strumentali nuovi destinati a strutture produttive ubicate nel territorio dello Stato”.

Industry 4.0 tax credit
  1. The tax credit may vary according to the type of investment carried out, with different rates and time windows depending on the case.

Referring to the precise type of investment made by the company, the subdivision already present in the measures of previous years is taken into consideration. Here, in brief, is what the legislation provides for according to the specific cases.

For investments in new capital goods, also defined as “machinery 4.0” (all. A – L. 232/2016):

Applied rate of tax creditInvestment conditions
50% of the costUp to 2.5 million euros invested
30% of the costFrom 2.5 to 10 million Euros invested
10% of the costUp to a maximum of €20 million invested

The above rates are applied from November 16, 2020 to December 31, 2021, or until June 30, 2022 if by December 31, 2021 the relevant order has been accepted by the seller and down payments of at least 20% have been made.

In 2022, it will be back with the previous rates and investment brackets (40% up to 2.5 million euros, 20% between 2.5 million and 10 million euros, and 10% between 10 and 20 million euros).

With regard to tangible capital goods other than those indicated in all. A – L. 232/2016, and intangible goods (software) other than those indicated in all. B – L. 232/2016, i.e. all those machines and software that do not fall within the Industry 4.0 category.

Applied rate of tax creditInvestment conditions

10% of the cost, up to 15%

(until December 31, 2021 or, in the cases provided for above, until June 30, 2022)

If they are investments in technical tools and devices intended to increase the use of agile work.

6% of the cost

In 2022

If it is an investment in tools and technical devices intended to increase the use of agile work.

Note: The above rates also apply to investments made by those in the arts and professions.

For investments in software 4.0 (all. B – L. 232/2016)

Applied rate of tax creditInvestment conditions
20% of the cost

Up to €1 million.

Expenses for cloud computing solutions are also included for the relevant part.

Investments in R&D

Applied rate of tax creditCondizioni di investimento
20% of the costFino a 4 milioni di Euro.

Investimenti in innovazione tecnologica, design, innovazione estetica

Aliquota applicata di credito d’impostaInvestment conditions
10% of the costUp to 4 million Euros.

Investments in technological innovation, design, aesthetic innovation

Applied rate of tax creditInvestment conditions
15% of the costUp to 2 million Euros.

Employee training

Applied rate of tax creditInvestment conditions
30% of the costUp to 250 thousand Euro for large companies
40% of the costUp to 250 thousand Euros for medium-sized enterprises
50% of the costUp to 300 thousand euros for small businesses

In this specific case, the rates remain unchanged with respect to previous budget measures, with the only change being the extension to December 31, 2021.

Sources:

Annex A and B to Law No. 232 of December 11, 2016 – Available at the link: https://www.agenziaentrate.gov.it/portale/web/guest/investimenti-in-beni-strumentali/normativa-e-prassi-professionisti

Budget Law 2021 – Available at the link: https://www.mef.gov.it/focus/Legge-di-Bilancio-2021/#cont3_scheda

PMI.it, “Industry 4.0: enhanced incentive,” November 23, 2020 – Available at link: https://www-pmi-it.cdn.ampproject.org/c/s/www.pmi.it/impresa/normativa/346029/industria-4-0-incentivo-potenziato.html?amp

Fotina C., “Change the 4.0 plan: more digital, less aid on traditional goods”, Il Sole 24Ore, 6 January 2021 – Available at link: https://www.ilsole24ore.com/art/cambia-piano-40-piu-digitale-meno-aiuti-beni-tradizionali-ADb5blBB

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