What changes with the 2020 Budget Law?
With the 2020 Budget Law, the Italian national Impresa 4.0 plan becomes a new national Transizione 4.0 plan based on the Italian Recovery Fund. The investment amounts to some 24 billion euro from 2020 to June 2023. As with the previous plan, for capital goods purchase contracts signed by 31/12/2022 it is possible to claim the tax credit by paying a deposit of at least 20% of the amount and taking delivery of the goods within the following 6 months (that is, by June 2023). The aim is to stimulate private investment and give companies stability and certainty.
For investments in “ex super” capital goods and in non-4.0 intangible assets made in 2021 by parties with revenue or fees below 5 million euro, the tax credit can be used within one year; immediate offsetting (from the current year) of the credit relating to investments in capital goods is allowed;
For all tax credits on tangible capital goods, the credit is used over 3 years instead of the 5 years provided for under current legislation. – For spending on i4.0 tangible assets below 2.5 million euro: new rate of 50% in 2021 and 40% in 2022. For spending above 2.5 million euro and up to 10 million: new rate of 30% in 2021 and 20% in 2022. For spending above 10 million euro and up to 20 million a new cap has been introduced: rate of 10% in 2021 and in 2022.
For 4.0 intangible assets there is an increase from 15% to 20%, with a ceiling rising from 700 thousand euro to 1 million euro. The tax credit is proportional to the share of the total cost of the assets, within a maximum limit, for each investment project, of 3 million euro for small companies, 10 million euro for medium-sized companies and 15 million euro for large companies.
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