NUOVA SABATINI

What is it
The “Beni strumentali” measure (“Nuova Sabatini”) is a facilitation made available by the Ministry of Economic Development aimed at easing businesses’ access to credit and increasing the competitiveness of the country’s production system.
This incentive supports investments to purchase or acquire by leasing machinery, equipment, plants, production-use capital goods, and hardware, as well as software and digital technologies.

Who is it for
Micro, small, and medium-sized enterprises (SMEs) can benefit from the incentive if, at the date of application:

  • They are regularly established and registered in the Business Register or the Fishing Business Register

  • They are in full and free exercise of their rights, not under voluntary liquidation or insolvency procedures

  • They are not among entities that have received and subsequently not reimbursed or deposited in a blocked account any aid deemed illegal or incompatible by the European Commission

  • They are not considered companies in difficulty

  • They are resident in a foreign country provided they open an operational office in Italy within the deadline for completing the investment

Eligible sectors
All productive sectors are eligible, including agriculture and fishing, except the following:

  • Financial and insurance activities

  • Activities related to exports and for interventions subject to preferential use of domestic products over imported ones

What it finances
The goods must be new and refer to tangible fixed assets such as “plants and machinery,” “industrial and commercial equipment,” and “other assets,” i.e., expenses classifiable under assets in the balance sheet according to items B.II.2, B.II.3, and B.II.4 of article 2424 of the civil code, as stated in accounting principle no.16 of the Italian Accounting Organization (OIC), as well as software and digital technologies. Expenses related to land and buildings, used or refurbished goods, and “assets under construction and advances” are not eligible.
Investments must meet the following requirements:

  • Functional autonomy of the goods, as financing parts or components that do not meet this requirement is not allowed

  • Correlation of the goods subject to the incentive with the company’s productive activity

The incentives
They consist of loans granted by banks and financial intermediaries adhering to the Addendum to the agreement between the Ministry of Economic Development, the Italian Banking Association, and Cassa Depositi e Prestiti S.p.A. to support SMEs’ investments covered by the measure, along with a contribution from the Ministry of Economic Development proportional to the interest on such loans.
The investment can be fully covered by bank financing (or leasing).
The financing, which may be backed by the “Guarantee Fund for Small and Medium Enterprises” up to 80% of the loan amount, must be:

  • Of a duration not exceeding 5 years

  • Between €20,000 and €4 million

  • Fully used to cover eligible investments

The Ministry of Economic Development’s contribution corresponds to an amount equal to the interest calculated conventionally on a five-year loan equal to the investment amount, at an annual interest rate of:

  • 2.75% for ordinary investments

  • 3.575% for investments in digital technologies and waste tracking and weighing systems (so-called “Industry 4.0” technologies)

INDUSTRY 4.0 PLAN
What the Industry 4.0 Plan is

Launched in 2016, the Industry 4.0 Plan is the Government’s industrial policy strategy to promote the digitalization and competitive strengthening of the Italian production system. It consists of a broad range of policies aimed at creating an attractive environment for investment, including foreign investment, and encouraging the creation and development of high-tech companies. Innovation is the common thread, conceived as the main lever for the country’s economic growth.
The incentives introduced by the national Industry 4.0 Plan have made the Italian tax regime one of the most favorable worldwide for companies investing in digital technologies. The incentives, which can be activated automatically by all types of businesses to simplify procedures, reward companies that invest, especially in innovation. Alongside tax incentives, the Plan includes a broader spectrum of measures dedicated to different categories of enterprises, from tech startups to multinationals.

The five main fiscal measures described below represent the cornerstones of the Plan:

Industry 4.0 Plan: Hyper and Super Depreciation
The Plan includes two incentives for companies investing in new tangible and intangible capital goods useful for digital technology transition in production processes.
Hyper and super depreciation consist of the overvaluation of investment assets for tax benefit purposes, and the two incentives can be combined with other Industry 4.0 measures.
All business income holders with a physical presence in Italy or stable establishments of foreign companies are eligible.

  • Super Depreciation
    This increases the value of new machinery investments by 40%, raising the acquisition cost for accounting depreciation purposes. Since these costs receive tax benefits, this reduces the taxable base and tax burdens significantly.

  • Hyper Depreciation
    Similar to super depreciation, hyper depreciation increases the value of capital investments by 150%, resulting in substantial tax savings. This applies to specific tangible assets, devices, and enabling technologies that transform industrial processes digitally (e.g., machinery capable of exchanging information via IoT). Companies are thus incentivized to digitize their production and distribution processes.

Industry 4.0 Plan: R&D Tax Credit
Companies increasing their R&D expenses during 2017-2020 benefit from a 50% tax credit on incremental costs, up to a maximum of €20 million per year. This applies to fundamental research, industrial research, and experimental development, including personnel costs, research contracts, and industrial property rights. The tax credit can be used to cover a broad range of taxes and contributions, even in case of losses.

Industry 4.0 Plan: Innovative Startups and SMEs
Investments in equity capital of innovative startups and SMEs benefit from a significant IRPEF deduction or IRES tax base deduction depending on the investor’s legal nature. The incentive equals 30% of the investment, up to €1 million for individuals and €1.8 million for legal entities. It applies to both direct investments in the companies’ equity and indirect investments through OICRs, venture capital funds, and other entities mainly investing in innovative startups and SMEs.

Industry 4.0 Plan: Patent Box
The Patent Box allows business income holders to reduce IRES and IRAP rates on income from intangible assets by up to 50%.
The goal is to make the Italian market competitive and attractive through favorable taxation of income derived from intellectual property, encourage relocation of intangible assets to Italy, and discourage their relocation abroad.
It applies to income derived from intangible assets such as industrial patents, registered trademarks, industrial designs and models, know-how, and copyright-protected software.

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