The Transition 5.0 plan, provided for in the PNRR decree law, was finally introduced with the approval of the Council of Ministers on Feb. 26, 2024, and made official on March 2 with its publication in Official Gazette no.
52. In addition to the necessary parliamentary confirmation within the standard 60-day period, two additional implementing decrees are awaited to ensure full implementation, with the first decree expected to be issued within 30 days, i.e. by April 1. The Transition 5.0 plan represents a crucial evolutionary phase, which has already begun with the Transition 4.0 plan financed under Mission 1 – Component 2 “Digitization, Innovation and Competitiveness of the Production System” of the NRP; a moment characterized by the convergence of technological innovations, environmental changes and social transformations.
In this article we will delve into the evolution and new features introduced by the Transition 5.0 plan.
Transition 5.0 decree: what’s new in the plan for green and digital transition
Prior to the development of the most recent plan, there were already national forms of business support contained in the National Industry 4.0 Plan, the legal basis for the facilities contained in the Transition 5.0 plan. The
National Industry 4.0 Plan (or Transition 4.0) was funded with the aim of supporting the
digital transformation of businesses by incentivizing private investment in goods and activities to support digitalization through the recognition of a tax credit for the purchase of:
- Purchase of tangible goods;
- Purchase of intangible assets 4.0 (e.g., advanced software);
- Purchase of traditional intangibles (e.g., basic software);
- 4.0 training activities.
In the Transition 5.0 Plan, companies will be granted an automatic tax credit, without any prior assessment, and without discrimination related to company size, business sector or location. Specifically, The Plan provides 6.3 billion euros in resources for Italian companies engaged in digital and sustainable transition projects.
This considerable support is in addition to the 6.4 billion provided by the Budget Law for a total of 13 billion euros to be distributed over the two-year period 2024-2025.
Transition 5.0: eligible investments and facilities granted
Facilities under the Transition 5.0 plan are granted to Italian enterprises facing the following investments:
- purchase of tangible and intangible assets essential for the company’s activity, included in Annexes A and B of Law no. December 11, 2016, no.
232, as long as they are integrated into the business system and lead to an overall reduction in energy consumption: by 3 percent for the production structure covered by the innovation project or, alternatively, by 5 percent for the processes involved in the investment; - investment in new tangible assets aimed at autonomous energy production through renewable sources for domestic consumption, except biomass, including devices for storing the energy generated;
- expenses for staff training, provided by external entities, up to 10 percent of the investment made and up to a maximum of 300,000.00 euros.
The decrease in energy consumption must be certified through an assessment (ex ante) that identifies the energy savings achievable through the planned investments and an assessment (ex post) that demonstrates the actual implementation of the investments in line with the initial assessment. Certifications must be issued by Independent Evaluation Bodies, such as Energy Management Experts (EGE) and Energy Service Companies (ESCo), provided they are certified by accredited bodies.
As for solar panels (for the above-mentioned autonomous energy production), only those manufactured in Europe as specified in Article 12(1)(a), (b) and (c) of Decree Law No.
181. For these investments, companies can apply for the benefit provided by the Transition 5.0 plan, which is a tax credit that varies according to the amount of the investment and the percentage of energy savings achieved. The rates are as follows:
- 35 percent of the cost for investments up to 2.5 million;
- 15 percent of the cost for investments over 2.5 million euros and up to 10 million euros;
- 5 percent of the cost for investments over 10 million euros, up to a maximum of 50 million euros in eligible costs per year per beneficiary enterprise.
These rates increase to the:
- 40%, 20% and 10% if there is a reduction in energy consumption of the production facility of more than 6% or a reduction in energy consumption of processes of more than 10%;
- 45%, 25% and 15% if there is a reduction in energy consumption of the production facility of more than 10% or a reduction in energy consumption of the processes affected by the investment of more than 15%.
The tax credit can be used only by offsetting, through the F24 form, to be initiated by Dec. 31, 2025, and, in any case, from the fifth day following the notification of the granting order.
Improve your company’s energy performance and reduce consumption
The Transition 5.0 plan represents an opportunity for companies that intend to start a path aimed at green and digital transition.
The opportunity to define a strategy to have a greater awareness about their energy consumption, the potential for optimization (in terms of costs and resource savings) and the environmental impact attributable to their organization.
Take advantage of our EGE experts’ expertise, energy efficiency solutions and industrial data monitoring to get in on the 5.0 transition tax credit.
Let’s work together on your company’s green and digital transition.
