The digitization of businesses remains among the priorities of the state, which once again confirms the Industry 4.0 tax credit to support entities that intend to initiate a process of innovation within their companies.
Let us now see what changes the Budget Law 2023 makes to the Industry 4.0 tax credit.
Industry 4.0 tax credit: the incentive that encourages business investment
Indeed, first through the National Plan Industry 4.0 and later through the National Plan Transition 4.0, the government wanted to give a boost to the digital transition of Italian companies, supporting over time a measure that facilitated the implementation of technologically advanced tools or assets, but also machinery, software and various intangible assets.
Tax credit new tangible and intangible capital goods
These can be used exclusively by offsetting in three annual installments of the same amount.
- 20% tax rate for investments up to 2.5 million;
- 10% tax rate for investments over 2.5 million euros and up to 10 million euros;
- 5% tax rate for investments over 10 million euros and up to 20 million euros.
In all cases, the Law also grants the tax credit for tangible capital goods to enterprises that do not complete the investment within the year of interest, provided that by the end of the same year the order is accepted by the seller, the buyer has made a down payment of at least 20 percent of the total cost, and the investment is completed by June 30 of the following year.
In fact, companies that made the investment in the year 2022 can access the relief by benefiting from the more advantageous rates of 40, 20 and 10 percent, respectively, and conclude the investment by September 30, 2023 (instead of June 30), provided that both the order and the down payment of at least 20 percent are – respectively accepted by the seller and paid by the buyer – as of December 30, 2022.
- 20% tax rate for investments up to €1 million for the year 2023;
- 15% tax rate for investments up to €1 million for the year 2024;
- 10% tax rate for investments up to €1 million for the year 2025.
Technological innovation, research and development: the other tax credits
In addition to the tax credits mentioned above, the national plans provide additional tax credits to meet more business needs while helping to achieve the identified goals.
Companies that invest in research and development projects (fundamental, industrial research and experimental development activities) for the period from Jan. 1, 2023 to Dec. 31, 2031 are granted a 10 percent tax credit, subject to a maximum annual spending limit of 5 million euros.
At present, it appears that tax credits for 4.0 training activities and ordinary capital goods (non-4.0 goods) provided until December 31, 2022, are no longer recognized.
A tax credit is granted for technological innovation activities, aimed at creating new or improved products or production processes, equal to 10 percent until Dec. 31, 2023, and 5 percent of the cost from Jan. 1, 2024, to Dec. 31, 2025, up to an annual expenditure limit of 2 million euros.
Finally, a tax credit for technological innovation 4.0 and green is recognized to companies that invest in activities aimed at achieving goals of ecological transition or technological innovation 4.0, through activities directed at the realization of new or substantially improved products or production processes.
In this case, the state recognizes the subsidy at an amount equal to 10 percent for the year 2023 and equal to 5 percent for subsequent periods until December 31, 2025, up to an annual expenditure limit of 4 million euros.
Investment in capital goods: our solutions
Our kontrolON is the industrial monitoring system that allows companies to access the tax credit for new capital goods. An effective tool that allows real-time monitoring – and also via free app – of production data, plant energy consumption, compare industry kpi and intervene promptly in case of anomalies or failures.
Take advantage of tax credits to increase the competitiveness of your business.
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