By Tommaso Fonti LL.M. – Department of International Taxation
The new tax relief under the Transition 5.0 plan offers businesses a tax credit for investments aimed at reducing energy consumption, to be made in 2024 and 2025. In this article, we will outline how your company can access these benefits.
Transition 5.0 Tax Credit
Decree-Law No. 19 of March 2, 2024, introduces a new tax credit for companies investing in innovative projects capable of reducing energy consumption. This incentive is part of the Transition 5.0 plan and applies to investments made between January 1, 2024, and December 31, 2025.
Eligible Beneficiaries
All businesses residing in Italy are eligible for the tax credit, regardless of legal form, economic sector, size, or income determination regime. Companies in voluntary liquidation, bankruptcy, or other insolvency proceedings, as well as those subject to prohibitory sanctions, are excluded.
Eligible Investments
Investments must be in new tangible and intangible assets that are instrumental to the business and interconnected with the company’s production management system or supply network. They must also lead to a reduction in energy consumption in the production structure or processes affected by the investment, with a minimum reduction of 3%.
Amount of the Tax Credit
The amount of the tax credit varies depending on the level of energy consumption reduction achieved through eligible investments. To view the table, click here.
Access Procedure
Businesses must submit an initial technical certification to the Energy Services Manager (GSE), along with a description of the investment project and its related cost. The GSE will review the documents and provide the list of eligible companies to the Ministry of Enterprises and Made in Italy. The company is required to periodically communicate the progress of the eligible investment to the GSE, as well as its completion, accompanied by a final “ex post” certification to avoid loss of the benefit.
Certifications and Use of the Credit
The benefit is contingent upon the submission of certifications issued by an independent evaluator. The tax credit can only be used to offset taxes via the F24 form and is non-transferable or non-assignable. Companies must retain appropriate documentation for potential inspections.
Our Services
Bacciardi Partners is at your disposal to assist your company in accessing the tax credit for the Transition 5.0 plan. We invite you to contact us directly at +39 (0)721 371139 or via email at segreteria@bacciardistudiolegale.it for personalized advice to maximize the benefits for your business.