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Insights Tax credit for investments in capital goods 4.0: updates from 2022 National Financial Law

Tax credit for investments in capital goods 4.0: updates from 2022 National Financial Law

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published on 23 February 2021 | reading time approx. 3 minutes


Article 1, paragraph 44 of Law 234/2021 (2022 National Financial Law) introduces some update regarding the duration and extent of the tax credit provided for investments in capital goods 4.0.

The 2022 National Financial Law provides some news about the tax credit due to entities that make investments in tangible and intangible 4.0 assets. 

In particular, article 1, paragraph 44, of the 2022 National Financial Law provides for the extension to 2025 of the facilitation envisaged for investments in capital goods 4.0.

As regards, the calculation of the tax credit:
  • for investments in tangible assets 4.0:
    • carried out from 1 January 2022 to 31 December 2022, the amount of the benefit is unchanged, namely:
      • 40 per cent of the cost, for the investment up to Euro 2.5 million;
      • 20 per cent of the cost, for investments from Euro 2.5 million to Euro 10 million;
      • 10 per cent of the cost, for investments from Euro 10 million to Euro 20 million;
    • carried out between 1 January 2023 and 31 December 2025 (i.e. in the long term of 30 June 2026), the tax credit is equal to:
      • 20 per cent of the cost, for the investments up to Euro 2.5 million;
      • 10 per cent of the cost, for the investments from Euro 2.5 million to Euro 10 million;
      • 5 per cent of the cost, for the investments from Euro 10 million to Euro 20 million. The limit of Euro 20 million regards all eligible costs for the entire period 2023-2025.
  • for investments in intangible assets 4.0, after the FY 2022 the amount of the facilitation is progressively reduced. Therefore, for investments concerning assets included in Annex B of Law 232/2016:
    • carried out from 16 November 2020 to 31 December 2023 (i.e. within the long term of 30 June 2024), the tax credit is equal to the 20 per cent of the cost, but within the “annual” maximum limit of eligible costs of Euro 1 million; 
    • carried out from 1 January 2024 to 31 December 2024 (or within the long term of 30 June 2025), the tax credit is equal to the 15 per cent of the cost, up to a maximum of Euro 1 million in eligible costs;
    • carried out between 1 January 2025 and 31 December 2025 (i.e. within the long term of 30th June 2026), the credit is granted at the rate of 10 per cent of the cost, up to a maximum of Euro 1 million in eligible costs.

Anyway, the subjective and objective requirements to be eligible for the tax credit remain unchanged. In fact, all entities resident in Italy, including permanent establishments of non-residents entities, can benefit of the abovementioned tax credit, regardless of their legal form, economic sector, size and the tax regime adopted.

The tax credit for investments in goods 4.0 may exclusively use by offsetting through F24, in three equal annual instalments starting from the year in which the investments are interconnected.

Finally, it should be noted that the 2022 National Financial Law does not provide any update about the tax credit for investments made by entities in “ordinary” tangible and intangible assets (i.e. new goods, instrumental to the company's activity and intended for production plant located in Italy without the characteristics provided for by the 4.0 paradigm). 

The tax credit for investments in such assets, pursuant to Article 1, paragraphs 1054-1055, Law no. 178/2020 (National Financial Law 2021), will therefore expire in 2022.

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