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The new tax credit incentives 2022 in Italy Budget Law for company investments

Updated: Dec 12, 2023

Also foreign subsidiaries and permanent establishments controlled by non resident investors could benefit of the tax credit incentives for the purchase of instrumental goods and assets

Elegible costs and negative list.

“the costs for puchase of goods used for technological and digital trasnformation of "industria 4.0" are preferred”

The 2022 Italian budget law has modified the tax credit discipline for investments in new capital goods dedicated to production facilities located in the territory of Italy.

So that, for investments in assets non included in 4.0, the tax credit is equal to:

- a percentage of the cost determined for income tax purposes;

- within the maximum limit of eligible costs of:

a) € 2 million for investments in capital goods materials;

b) € 1 million for investments in intangible capital goods.

These measure of the tax credit depends also on the date on which the purchase takes place.

The beneficiaries are:

- enterprises resident in the territory of Italy, including permanent establishments of foreign investors non-resident in Italy;

- regardless of:

a) the legal form;

b) economic sector to which they belong

c) size;

d) tax regime;

- non-commercial entities with reference to any commercial activity carried out;

- art activities and professionals, also if they are in an associated form, even if the business activity is a secondary activity.

The beneficiaries are subject to the conditions of compliance with:

- regulations on safety of the workplace, applicable in each sector;

- correct fulfillment of the obligations to pay social security and welfare contributions in favor of employees.

The subjects excluded from incentives 2022 are:

- companies in a state of voluntary liquidation, bankruptcy, compulsory administrative liquidation, arrangement with creditors without business continuity or subject to other insolvency proceedings;

- companies subject to disqualification sanctions provided for by the laws on the administrative liability of companies.

Therefore, subjects which perform business activities can benefit of:

- the tax credit for investments in "ordinary" capital goods that do not concern those of the "Industry 4.0" model;

- the tax credit for investments in tangible and intangible assets that are used for the technological and digital transformation of companies of the "Industry 4.0" model (pursuant to Law no. 232/2016);

While, those performing arts and professions can only access the tax credit for investments in tangible and intangible "non-Industry 4.0" assets.

The incentives concern investments in new tangible and intangible assets, which are instrumental to the exercise of a business or art and profession

The following goods are excluded from the incentives (negative list):

- motorized means of transport, such as: cars and motorhomes, touring aircraft, ships, pleasure boats;

- assets for which are expected depreciation coefficients of less than 6.5%;

- buildings and constructions;

- pipelines, ducts, rolling stock;

- freely transferable assets of companies operating under concession and at tariffs in the energy, water, transport, infrastructure, post office, telecommunications, collection and purification of waste water and waste collection and disposal sectors;

- assets already used for any reason.

An asset used for a certain period is also considered "new", on the basis of a loan agreement and then purchased by the borrower himself.

The amount of the tax credit differs depending on the date on which the purchase takes place:

- for purchases made starting from November 16th 2020 and until December 31st 2021 (or, even by June 30th 2022, provided that by December 31st 2021 the seller has accepted the relative order and payment of advances equal to at least 20% of the acquisition cost) the tax credit is recognized at 10% of the cost;

- for purchases made after 1st January 2022 and up to 31st December 2022 (or even by 30th June 2023, provided that by 31st December 2022 the relative order is accepted by the seller and payment of advances equal to at least 20% of the acquisition cost) the tax credit is recognized to the extent of 6%.

The tax credit:

- it can only be used in compensation;

- it can be combined with other concessions that have the same costs as their object, provided that the combination:

a) does not exceed the cost incurred;

b) does not contribute to the formation of the income and the corporate tax base (IRAP).

Companies that make use of these incentives must notify the Ministry of Productive Activities.


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