The “Industria 4.0” plan, born in 2018 to stimulate investment in companies, especially in the field of technological innovation, has taken the name of “Transizione 4.0” and has broadened the range of action by covering Research and Development, Innovation and Design. One of the differences between the two is that in the Industry 4.0 plan, hyper-amortization of certain categories of productive assets was envisaged, while already in the Transition 4.0 plan, the tax credit was used.

In the Recovery Found draft, the investment consists of about 24 billion euros, for a measure that will become structural and will see the enhancement of all the deduction rates and an advance of the times of use. The plan will be in effect until 12/31/2022.

An important part of this amount will be allocated to the digitization of companies, where Italy currently has less virtuous parameters compared to the performance of the countries of the European Union. Yet the data show that the majority of “4.0” companies, that is companies that have extensively implemented the digitalization paradigms, in the last three years have increased their turnover more than traditional companies or those that have carried out only “marginal” interventions in this area.

The three strategic axes on which the Recovery Found resources will be allocated will be Digitization and Innovation, Ecological Transition and Social Inclusion.

In the context of Digitization, the important difference compared to the original “Transizione 4.0” plan is that the concessions will also cover the purchase of software not directly connected to the production process, therefore for example plant maintenance software, but also software for processes such as administration and control, HR, CRM, treasury and so on. This concession will consist of a 10% subsidy rate for the whole of 2021; this term can be extended until 30/6/2022 provided that the investment has been booked, or there has been an acceptance of the order by the supplier and a deposit of at least 10% has been paid.

The maximum eligible investment will be 1 million euros and the timing of use will be 3 years. For companies with a volume of revenues of less than 5 million euros, the tax credit can be offset with a single annual fee for investments made in the period 16/11/2020 – 31/12/2021.

The concession will also be active in 2022 but with a decrease in the subsidy rate to 6% the maximum eligible investment always remains equal to 1 million euros and the timing of use always equal to 3 years. The subsidy will no longer be active for companies with a volume of revenues of less than 5 million euros (Law 178/2020, Article 1, paragraphs 1051-1063)

With regard to intangible assets 4.0, that is the software directly involved in the production process (assets falling under Annex B annexed to the law 232-2016), the subsidy rate will be for the period 16/11/2020 – 31/12/2022 equal to 20%, with a maximum eligible investment of 1 million euros and three years as a time frame for use.

The “Transizione 4.0” Plan also finances process innovation, where the goal of innovation is to stimulate innovative activities aimed at the creation or introduction of new or significantly improved products or processes, compared to those already created or applied by the company.

Significantly improved processes means processes or methods of production and distribution and logistics of goods or services that involve significant changes in technologies, plants, machinery and equipment, in software, in the efficiency of the resources used, in the reliability and safety for the internal or external subjects involved in company processes.

In this context, the eligible expenses are:

1. Expenses for personnel dedicated to the project;
2. Depreciation / financial leasing fees and other expenses relating to tangible assets and software used in the project (up to 30% of the expenses indicated in point 1);
3. Contracts involving the direct performance of the innovation activities by the commission agent;
4. Costs for consultancy services (within the limit of 20% of the costs indicated in point 1);
5. Expenses for materials, supplies and other similar products used in the project.

For this type of expenditure related to process innovation, the subsidy rate is 15% for technological and process innovation and 10% for digital innovation; the period of validity remains the whole of 2021 and the timing of use is also in this case equal to 3 years.

It is clear that investing now in a digitalization / technological innovation project can be very convenient and efficient, both in terms of savings for the purchase of the software and for the consulting services necessary for the realization of the project.

PL3 & Partners can guide you in a cost and opportunity analysis path linked to your business processes, analyzing your needs in order to optimize the required investment and related facilities and providing you with a safe and reliable guide in a collaborative partnership perspective .

For any further information please write us: marketing@pl3group.com

Paolo Ponte

Sales & Marketing Manager