Industry 5.0: active platform, how to apply

Who to target and how to apply for incentives under the Transition 5.0 Plan

“A new industrial policy tool combining innovation and training. First plan in Europe to simultaneously support green and digital transitions .”

With these words, Minister Urso officially announced the implementation of the implementing decree of the Transition 5.0 Plan (published in the Official Gazette No. 52 of March 2, 2024), which aims to support the transformation of production processes to more efficient and sustainable energy models by incentivizing investments in digitization, environmental sustainability and personnel training. On September 11, 2024, the directorial decree was signed, opening the platform for submitting notices of completion of innovation projects under the Transition 5.0 Plan. Let’s look specifically at who it is for, what it consists of, and how to apply.

What is Industry 5.0?

“Decree-Law No. 19 of March 2, 2024 (so called PNRR Decree quater) established the “Transition 5.0” Plan in implementation of the ECOFIN Council decision of December 8, 2023 approving the redefinition and update of the PNRR and, in particular, of the provisions in relation to Investment 15 “Transition 5.0″ of the new Mission 7 – REPowerEU.” * The objective of the Investment is to support, through a tax credit scheme, the transition of the production system to an energy-efficient, sustainable production model based on renewable sources. Industry 5.0 is a philosophy that integrates the entire production cycle with a sustainable and holistic approach. At the heart of this new understanding of industry is a “human centric” approach with a focus on workers’ self-esteem and well-being, the balance between automation and human labor, and corporate social responsibility. Driven by Fourth Industrial Revolution technologies (ICT, AI, robotics), it promotes the use of advanced systems such as Cyber Physical Systems and IoT devices. The goal is to improve collaboration between humans and machines to better meet consumer needs and protect the environment.

• Download the complete guide to the Transition 5.0 Plan

Difference between Industry 5.0 and 4.0

Industry 4.0 focused on digitization and automation, while Industry 5.0 aims for more sustainable and human-centered production. The new industrial revolution aims not only for efficiency, but for synergistic collaboration between humans and machines, for a future where technology improves everyone’s well-being.

The evolution toward Industry 5.0

The concept of Industry 5.0 is not tied to a single event, but is the result of a progressive interaction between technological innovations and socio-economic changes. A major impetus came from the European Commission in 2021, which outlined a future in which European industry leads the transition to a green and resilient economy, addressing the challenge of climate change.

Transition 5.0 plan: incentives for green and digital transitions

The Transition 5.0 Plan, in line with its predecessor Transition 4.0, is a measure promoted by the government to support the digital and energy transformation of Italian companies in the two-year period 2024-2025. The measure has a budget of 6.3 billion euros and aims to incentivize investments that foster technological innovation and reduce energy consumption. The plan offers facilities in the form of tax credits for companies that implement projects with a reduction in energy consumption of at least 3 percent for the entire production structure or 5 percent for the specific processes involved. Enterprises can benefit from these incentives for the purchase of tangible and intangible assets related to the digital transition, including software and facilities for self-production of renewable energy for self-consumption.

Allocated Funds and Goals

For the biennium 2024-2025, 12.7 billion euros have been allocated, including: – 6.3 billion from the RePower EU program to fund the Transition 5.0 Plan. – 6.4 billion, already provided in the budget law, earmarked for the Transition 4.0 Plan.

Tax credit rates and structure

The size of the tax credit varies depending on the investment and energy savings achieved for the following expenditures: – Up to 2.5 million, the credit can reach 45% for energy savings of more than 10% per production unit (or 15% per process). It drops to 40% for savings between 6 and 10%, and 35% for savings between 3 and 6%. – Between 2.5 and 10 million, the rate is 25%, 20%, or 15% depending on energy efficiency. – For amounts between 10 and 50 million euros, the rates are 15%, 10%, and 5%, respectively. The rate structure is designed to provide stronger incentives for small and medium-sized enterprises, favoring projects that offer significant energy efficiency improvements.

• Download the decree here
• Submit application

Features of the Transition 5.0 Plan

One of the Plan’s main innovations is theautomatic access to the tax benefits: companies will be able to take advantage of the incentives without the need for preliminary investigations or assessments. In addition, the measure is across-the-board and applicable to companies of any size, sector and geographical location. The incentives can be combined with other national benefits, with the exception of Transition 4.0 tax credits and for investments in Special Economic Zones (SEZs) and Special Logistics Zones (SLOZs).

Eligibility

To be eligible, the tax credit must contemplate the reduction of energy consumption by at least 3 percent for the production structure or at least 5 percent of the process affected by the investment. The reduction in energy consumption must derive from investments in tangible and intangible assets functional to the technological and digital transition of enterprises according to the “Industry 4.0” model(Annexes A and B to Law 232/2016). Assets approved to the extent of Annex B to Law No. 232 of December 11, 2016, include:

• The software, systems, platforms or applications for plant intelligence that provide continuous monitoring and visualization of energy consumption and self-produced and self-consumed energy, or introduce energy efficiency mechanisms, through the collection and processing of data including from IoT field sensors (Energy Dashboarding);
• Software related to business management if purchased together with the software, systems or platforms referred to in (a).

Self-consumption, personnel expenses and training activities.

They can also be facilitated:

• New tangible assets instrumental to business operations aimed at self-production of energy from renewable sources for self-consumption, with the exception of biomass, including facilities for storing the energy produced;
• Expenditure on staff training in the area of skills useful for the transition of production processes (up to 10% of the investment made in capital goods and up to 300 thousand euros).

They are qualified to deliver training activities:

➢ Subjects accredited to carry out training activities financed by the Region or Autonomous Province where the enterprise has its registered office or operational headquarters; ➢ Universities, public or private, and public research institutions ➢ Subjects accredited with interprofessional funds according to Commission Regulation EC 68/01 of January 12, 2001; ➢ Subjects in possession of quality certification according to the current provisions Uni EN ISO 9001sector EA 37; ➢ Highly specialized competence centers referred to in Article 1, paragraph 115, of Law December 11, 2016, no. 232; ➢ European Digital Innovation Hubs and Seals of Excellence selected downstream of the European Restricted Tender referred to in Commission Decision C/2021/7911 and defined in Article 16 of Regulation (EU) 2021/694 of the European Parliament and of the Council establishing the Digital Europe Program for the period 2021-2027; ➢ Higher Technological Institutes (ITS Academy). All resident companies and permanent establishments based in Italy are eligible, regardless of their legal form, economic sector, size and the tax regime adopted for determining business income. The rule regulates specific cases of exclusion (Article 38, paragraph 3), such as situations of financial difficulty of the company or the application of prohibitory sanctions. Compliance with safety regulations and social security contributions is required. The amount of the tax credit varies in relation to the share of investment and the reduction in consumption.

The impact on businesses

Industry 5.0 will profoundly affect companies: – Redefinition of production processes: collaboration between man and machine will require a rethinking of workflows. – Technology investment: investment in advanced technologies and digital infrastructure will be required to maintain competitiveness. – Employee training: training will be essential to equip workers with the necessary digital skills. – Adaptation to consumer needs: customization of products will allow them to better respond to individual preferences. – Global competitiveness: companies that successfully adopt this model will have an advantage over their competitors.

Eligible projects and benefits

The plan finances innovation projects involving investments in technologically advanced assets, both tangible and intangible (such as those listed in Annexes A and B of the Transition 4.0 Plan). And, as mentioned above, provided that the interventions ensure a reduction in energy consumption of at least 3 percent for the entire production unit or 5 percent for the specific processes covered by the investment. Eligible expenses also include those for staff training and facilities for self-production of energy from renewable sources for self-consumption. An “ex ante” certification is required to attest to the expected energy savings and an “ex post” certification to confirm the actual reduction in consumption at the end of the project. Entities qualified to issue the certifications include Energy Management Experts, Energy Service Companies and engineers with expertise in energy efficiency. The facilitation scheme aims to facilitate the transition to a more sustainable industry, in line with the objectives of the REPowerEU plan.

Computer platform The “Transition 5.0” IT Platform can be accessed from theCustomer Area of the GSE’s institutional website.

 

Incentives for photovoltaics and made in Europe

One interesting aspect concerns the installation of photovoltaic panels for self-consumption: if they are produced in Europe and have specific technical requirements, they benefit from an increased incentive. Pending the publication of an official register, companies can obtain incentives through a certificate issued by the manufacturer

Validity period and tax credit rates

The incentives cover new investments made between January 1, 2024 and December 31, 2025, with the possibility of completing the required documentation until February 28, 2026. The tax credit can reach a maximum rate of 45 percent, modulated in 9 levels that vary according to the amount of investment and the reduction in energy consumption achieved.

Platform to apply for incentives

The IT platform can be accessed from the Customers area of the GSE (Gestore dei Servizi Energetici) institutional website to book incentives. Companies will be able to register via SPID and follow the directions to properly complete the documentary procedures required by the decree.

 

 

References:

* https://www.mimit.gov.it/images/stories/documenti/Slide_Transizione_50-_MIMIT.pdf https://www.teamsystem.com/magazine/industry-40/industria-5-0-evoluzione-aziende/ https://www.mimit.gov.it/it/notizie-stampa/mimit-al-via-il-piano-transizione-5-0-apre-oggi-alle-12-la-piattaforma-per-prenotare-gli-incentivi https://www.ilsole24ore.com/art/industria-50-cos-e-e-cosa-manca-rendere-operativo-bonus-AGuFDHH https://www.mimit.gov.it/it/normativa/decreti-direttoriali/decreto-direttoriale-6-agosto-2024-credito-dimposta-transizione-5-0-termini-e-modalita-presentazione-domande

 

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