Prepared by Team Tax Incentives & Grants
Below it is reported a review the main changes relating to incentives for businesses introduced by the Budget Law 2023 (law n. 197/2022).
Tax credits for the purchase of electricity and natural gas – Extension to the first quarter of 2023 (art.1 par. 2-9)
To contain the increase in the cost of energy and gas, the Budget law confirms the tax credits for the first quarter of 2023, enhancing the measures as follows:
- energy-intensive companies are granted a tax credit equal to 45% of the expenses incurred for the energy component.
- non-energy-intensive businesses, equipped with electricity meters with available power equal to or greater than 4.5 kW, are granted a tax credit equal to 35% of the expenditure incurred for the purchase of the energy component.
For energy-intensive and non-energy-intensive companies, the bonus is due if the costs per kWh of the electricity component, calculated based on the average for the fourth quarter of 2022 and net of taxes and any subsidies, have undergone an increase in the cost per kWh of more than 30% compared to the same period of the year 2019.
High-gas and nonhigh-gas consumer companies are granted a tax credit equal to 45% of the expenditure incurred for the purchase of gas, consumed in the first calendar quarter of 2023, for energy uses other than thermoelectric uses. The bonus is due if the average reference price of gas for the fourth quarter of 2022, based on data from the intraday market (MI-GAS) published by the Energy Markets Operator (GME), has undergone an increase of more than 30% compared to the average for the same quarter of 2019.
These tax credits can be used in compensation by 31 December 2023 or, alternatively, they can be transferred, only in full, by the beneficiary companies to other subjects, with the possibility, for the latter, of two further transfers, provided that they are made in favor of “qualified” operators (banks and financial intermediaries, companies belonging to a banking group, insurance companies authorized to carry on business in Italy).
General system charges (art.1 par.11-12)
For the first quarter of 2023, ARERA is expected to cancel the rates relating to the general charges of the electricity system applied to domestic users and low voltage non-domestic users, for other uses, with available power up to 16.5 kW.
Tax credits for investments in the South – Extension (art.1 par. 265-266)
The art. 1, paragraphs 265 and 266, modifying the art. 1 co.98 and 108 of Law 208/2015, extended from 2022 to 2023 the tax credit for companies that purchase new capital goods (plant, machinery and equipment) forming part of an initial investment project and intended for production facilities located in the assisted areas of the Regions of Campania, Puglia, Basilicata, Calabria, Sicily, Molise, Sardinia and Abruzzo.
Tax credit for investments in the ZES – Extension (art.1 par. 267)
In parallel with the extension of the Mezzogiorno tax credit, the Budget Law extended until 31 December 2023 the tax credit for investments made in the so-called SEZ (Special Economic Zones), pursuant to art. 5 co.2 of the DL. 91/2017, with the possibility to include the purchase of land and buildings instrumental to the exercise of the business activity among the tangible assets subject to the facilitation.
Tax credit for research and development in the South – Extension (art.1 par. 268-269)
Based on the new provisions, the “increased” tax credit for R&D activities carried out in the southern regions is extended for 2023. To encourage the technological advancement of production processes and investments in R&D by companies operating in the Southern regions, this tax credit is due to the extent of 25% for large companies, 35% for medium-sized companies and 45% for small businesses.
Amnesty of R&D tax credit (art.1 par. 271)
The deadline for submitting the application for the repayment of the unduly compensated R&D tax credit, introduced by art. 5 co.7-12 of Legislative Decree 146/2021, is extended to November 2023. To access the credit reversal, the taxpayer must file a request prepared using the appropriate model approved with the provision of the Revenue Agency 188987 / 2022 and proceed with the credit reversal.
Certification on the qualification of R&D activities (art.1 par. 272)
Art. 2 of Legislative Decree 73/2022 is amended, establishing that the certifications on the qualification of R&D activities, technological innovation, ecological transition, design and aesthetic innovation can be requested on condition that the violations relating to the use of related tax credits “have not yet been disputed by the tax authorities“.
As a result of the recent changes, in addition to the tax credit relating to the years 2015-2019, it will also be possible to regularize any violations relating to the tax credit envisaged for subsequent years.
Tax credit for the listing of SMEs – Extension with amendments (art.1 par. 395)
The tax credit, initially introduced by Law 205/2017, for consultancy costs relating to the listing of SMEs is extended for FY 2023. This credit, equal to 50% of eligible costs, is recognized up to a maximum amount of 500 thousand euros (amount raised compared to the previous maximum limit of 200 thousand euros).
Tax credit for investments in tangible assets “4.0” (art.1 co.423)
This change extends from 06.30.2023 to 09.30.2023 the “long” term to make investments in material assets so-called Industry 4.0, as referred to in Annex A of Law 232/2016, provided that the related orders are accepted by 12.31.2022 and advance payments have been paid in an amount equal to at least 20% of the acquisition cost.
For these goods, therefore, the tax credit is still recognized at the rates envisaged for FY2022:
- 40% of the cost for the portion of investments up to 2.5 million euro;
- 20% for the portion of investments exceeding 2.5 million and up to 10 million euro;
- 10% for the portion of investments exceeding 10 million and up to the maximum limit of total eligible costs of 20 million euros.
Tax credit for incremental advertising investments
As a result of the so-called Energy decree (DL 17/2022) the ordinary regime of the tax credit for advertising expenses is modified, and it is granted to the extent of 75% of the “incremental” value (minimum increase of 1%) of the investments made in advertising campaigns in daily and periodical press, including online, with a national budget of 30 million euros. Then for 2023 advertising investments made on analogue or digital television and radio broadcasters are no longer facilitated.
Tax credit for purchase of fuel for agricultural and fishing activities (art.1 par. 45-51)
In favor of companies carrying out agricultural and fishing activities, as well as companies carrying out agro-mechanical activities, it is available a tax credit equal to 20% of the expenditure incurred for the purchase of fuel made in the first quarter of 2023. Furthermore, the tax credit recognized for the third quarter of 2022 it is extended to March 2023.
Tax credit to install composting plants at agri-food centers (art.1 par. 270)
The tax credit for expenses relating to the installation of composting plants at agri-food centers in the Campania, Molise, Puglia, Basilicata, Calabria, and Sicily regions is extended to 2023, up to a maximum limit of 1 million euro.
Nuova Sabatini – Refinancing and amendments (art.1 par. 414-416)
The resources allocated by art. 2 of Legislative Decree 69/2013 for the recognition of loans and contributions at subsidized rates in favor of SMEs that invest in machinery, plant, capital goods and equipment (so-called “Nuova Sabatini”) is extended. Furthermore, for initiatives with a loan agreement entered into between 2022 and June 2023, the 12-month deadline for completing the investments is extended for 6 months.
Tax credit for the restoration of public sports facilities – Extension (art.1 par. 614)
The validity of the so-called Sport bonus is extended until 202e. The tax credit is equal to 65% of donations made for the maintenance and restoration of public sports facilities and for the construction of new public sports facilities. The total national budget of the tax credit cannot exceed the overall limit of 15 million euros.
Tax credit for sports sponsorships – Extension (art.1 par. 615)
The tax credit equal to 50% of the investment costs in advertising campaigns, so-called sports sponsorship bonus, is extended for expenses incurred in the first quarter 2023, up to a maximum limit of 10,000 euros per taxpayer.
Tax credit for the purchase of recycled materials (art.1 par. 685-690)
For each of the years 2023 and 2024, a tax credit of 36% is re-proposed for the expenses incurred by companies for:
- products made with materials from the separate collection of plastic packaging;
- biodegradable and compostable packaging according to UNI EN 13432:2002 or derived from the separate collection of paper, aluminum, and glass.
The tax credit will be recognized up to a maximum annual amount of 20,000 euro for each beneficiary, within the overall maximum limit of 5 million euros per year.
Fund for industrial policies to support Made in Italy production chains (art. 1 – par. 402)
With a budget of 5 million euros for 2023 and 95 million euros for 2024, the Fund for enhancing industrial policies to support the Made in Italy production chains is established, aiming at supporting the development and modernization of production processes and activities functional to the growth of the Made in Italy’s excellence.
Fund for sustainable tourism (art. 1 – par. 611)
The Fund for sustainable tourism is established, with resources equal to 5 million euros for 2023 and 10 million euros for each of the years 2024 and 2025, with the aim of strengthening actions for ecotourism and sustainable tourism, as well as reducing economic, environmental and social impacts.
Fund for innovation in agriculture (art. 1 – par. 428 et seq.)
With resources equal to 75 million euros for each of the years 2023, 2024 and 2025, the Fund for innovation in agriculture is established to promote innovation projects aimed at increasing productivity in the agriculture, fisheries and aquaculture sectors through the best technologies for the digital management of the company, promoting the use of machines, robotic solutions, sensors and 4.0 infrastructure, and the practice of water saving and reducing the use of chemicals.
Fund for food sovereignty (art. 1 – par. 424)
The Food Sovereignty Fund is established, with a budget of 25 million euros for each of the years from 2023 to 2026, aimed at strengthening the Italian agricultural and agri-food system, through actions for the protection and enhancement of Italian quality food, reduction of production costs for agricultural businesses, agricultural supply chains support and market crisis management.
Fund for cultural and creative enterprises (art. 1 – par. 634)
The budget of the Fund for cultural and creative enterprises is increased by 3 million euros for 2023 and 5 million euros starting from 2024.
Development Contracts (art. 1 – par. 389)
It is envisaged the refinancing of the Development Contracts with resources equal to: (i) 160 million euros for each of the years from 2023 to 2027 and 240 million euros for each of the years from 2028 to 2037 for industrial development programmes, including programs for the transformation and commercialization of agricultural products and for the protection of the environment; ii) 40 million euros for each of the years from 2023 to 2027 and 60 million euros for each of the years from 2028 to 2037 for tourism activities development programmes; iii) 100 thousand euros for the year 2023 and 500 thousand euros for each of the years 2024 and 2025 for the rehabilitation and conversion project of Cerano and North Torrevaldaliga coal-fired plants.
SMEs Guarantee Fund (art. 1 – par. 392)
The deadline for the application of the transitional regulation of the Guarantee Fund for SMEs and the deadline for the application of the special and temporary support, established as part of the measures to contrast the Ukrainian crisis effects, is extended to December 31, 2023.
Guarantee for Green New Deal projects (art. 1 – par. 421)
For 2023, it is envisaged the allocation of 565 million euros to cover the guarantees, within the limit commitment from SACE Spa of 3,000 million euros.
Fund for the publishing sector (art. 1 – par. 638)
The budget of the Fund is increased by 75,883,298 euros for 2023 and 55 million euros per year starting from 2024.
Social fund for employment and training (art. 1 – par. 324)
The budget is increased by 250 million euros per year starting from 2023.
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Further to the above-mentioned measures, other changes to the incentives available for enterprises could be introduced by means of the so-called Milleproroghe Decree to be issued by the Italian Government in the next few months.
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