Investment in capital equipment is a necessary step to increase productivity and business competitiveness of your company. Today, thanks to the Industrial Plan 4.0 (which later became the New National Transition 4.0 Plan) tax credits and incentives are granted to those who invest in:

• Functional goods for the technological and digital transformation of enterprises according to the “Industry 4.0” model;
• Intangible assets-software, systems and system integration, platforms and applications-connected to investments in “Industry 4.0” tangible assets.

Read more about the Industry 4.0 Model (2020-23)

Sommario

• 1 Table of Contents
  • 1.1 What is investment in capital goods
  • 1.2 What the tax credit for investment in capital goods is for
  • 1.3 What are the expected benefits for companies investing in capital goods
  • 1.4 How fruition occurs and for Enterprises investing in capital goods
  • 1.5 How is the tax credit for investment in capital goods used?
  • 1.6 What are the key capital assets for your company?
  • 1.7 Who gets the benefits provided for those who invest in capital goods?
  • 1.8 Download attachments A and B:
  • 1.9 Why to invest in capital goods in 2021
  • 1.10 Investing in innovative technology needed to revitalize your Enterprise
  • 1.11 Why choose us
  • 1.12 Contact us for a free consultation
    • 1.12.1 Il nostro team è a tua disposizione
    • 1.12.2 References:

Table of Contents

What is investment in capital goods

What the tax credit for investment in capital goods is for

What are the expected benefits for companies investing in capital goods

How fruition occurs and for Enterprises investing in capital goods

How is the tax credit for investment in capital goods used?

What are the key capital assets for your company?

Who gets the benefits provided for those who invest in capital goods?

Why to invest in capital goods in 2021

Investing in innovative technology needed to revitalize your Enterprise

What is investment in capital goods

It is an investment in technologically advanced tangible assets and instrumentation for the enterprise, such as the technology park (tablets, workstations, PCs, Laptops, printers, smartphones, security and cybersecurity networks, Industrial Internet of Things, Network & Wireless Security, Data Security, etc.).

The investment in capital goods offers the opportunity to access subsidized business credits and other important incentives pervised in the Industrial 4.0 Model.

• Contact us and find out how to renovate your company’s technology park cheaply and quickly.

What the tax credit for investment in capital goods is for

The tax credit is meant to offer concrete support and incentive to companies that invest in new capital goods, tangible and intangible, functional to the technological and digital transformation of production processes intended for production facilities located in Italy.*

What are the expected benefits for companies investing in capital goods

It is important to invest in new capital goods because a number of concessions are available.

For investment in capital goods as technologically innovative materials, as decreed by Annex A, Law Dec. 11, 2016, no. 232 – former Hyper depreciation, a tax credit in the amount of:

• 40 percent of the cost for the portion of investments up to 2.5 million;
• 20 percent of the cost for the portion of investment over 2.5 million euros and up to the total eligible cost limit of 10 million euros.

Other facilities are provided for intangible assets related to investments in “Industry 4.0” tangible assets (Annex B to Law No. 232/2016), with tax credit equal to 15 percent, up to a maximum of 700,000 euros in eligible costs. Expenses for services incurred through cloud computing solutions are also considered eligible.

How fruition occurs and for Enterprises investing in capital goods

• The fruition can be accessed starting:
  • From the year following the year the assets are put into operation, for investments in assets other than “Industry 4.0” assets;
  • From the year following the year in which the assets are interconnected to the company’s production management system or supply network, for investments in “Industry 4.0” assets.

How is the tax credit for investment in capital goods used?

The tax credit can be used in five annual installments of the same amount, which becomes three for investments in intangible assets.

• Find out on the MISE website how to apply for your company’s Digital Trafsormation.

What are the key capital assets for your company?

Before answering this question, it is essential to be aware of some aspects related to your business and answer the following questions:

• What kind of services do you offer?
• What does it need to function well?
• What do you think is necessary to be competitive against the competition?
• Can it still afford to use outdated technologies that slow down processes and hold back turnover and profitability?

• Discover operational rental to get state-of-the-art business technology, support and maintenance by paying a small monthly installment.

Basically, before answering the question “what capital goods are needed for your Company” it is essential to have a strategic plan, or rather, a real Business Plan, including a detailed analysis of the scenario in which you operate, financial data, profit prospects, losses and potential combined with the acquisition of new technological equipment.

The ultimate meaning of state facilities and incentives lies in the concrete assessment of the need to provide Italian SMEs with the support they need not so much to survive as to become competitive and relaunch themselves in the market.

• What technologies are suitable for your Enterprise? Request a free consultation.

Who gets the benefits provided for those who invest in capital goods?

“All enterprises resident in Italy, including permanent establishments of nonresidents, are eligible for the tax credit, regardless of their legal form, economic sector, size and income determination tax regime. “*

The tax credit is also available for investments made by those engaged in the arts and professions regarding assets other than tangible assets functional to the technological and digital transformation of enterprises according to the “Industry 4.0” model and related intangible assets (Annexes A and B to Law No. 232/2016).*

Download attachments A and B:

• Annex A
• Annex B
• Read the Ministry’s Faq (frequently asked questions and answers) and instructions for document compliance.

Why to invest in capital goods in 2021

As revealed by the Istat Report on ICT and Enterprise Digitization between 2019 and 2020, it is only large enterprises that are integrating the most advanced technologies.

In fact, while using the Web, most SMEs do not invest in Innovation.

More advanced digital applications are sparsely used by SMEs, with only 8 percent saying they have a maximum of 2 smart or interconnected devices, robotics, Big Data analytics, and advanced printers such as 3D in manufacturing processes.

These are elements that do not make companies competitive and cause loss of turnover and revitalization opportunities every year: “Overall, about 82 percent of companies with at least 10 employees are at a ‘low’ or ‘very low’ level of ICT adoption. “*

In 2020, the total loss of turnover for Italian businesses was 420 billion euros, compared with a strong uptick for the web giants, with a 17 percent increase in revenues (Source: Analysis by Cgia di Mestre – Association of Artisans and Small Businesses). This is also due to inadequate instrumentation and models to cope with the new contexts challenged by the exponential growth of online with users-potential customers-increasingly connected.

• Get counseling to access new business technologies with a single small monthly payment.

Investing in innovative technology needed to revitalize your Enterprise

In a recent interview with Sole24Ore*, the president of Confindustria Valle d’Aosta, speaking of the crisis caused by Covid, stresses the importance of building on this, interpreting the thinking of many entrepreneurs facing new technological and business challenges.

“Precisely in times of crisis, it is necessary, in my opinion, to lay the foundations for the revitalization of activities in a more high-performance way than before; that is, it is also necessary to consider the crisis as a time when production models can be rethought in order to re-enter the markets with a new impetus. And many of our productive realities are going precisely in this direction. Also benefiting from contributions made available by the regional administration, many companies are investing in services for the digitization of processes from an Industry 4.0 perspective.”

The message is clear: it is necessary to invest in innovative and high-performance technologies to be able to cope with the new economic and business models, and to raise the quality offered to remain competitive:

“This for me is the key to getting out of the crisis: investing in assets but also, and above all, in human capital. Maintaining a leading role will also require constantly raising the quality, degree of innovation and efficiency of the products and services offered.”

• Renew your SME’s technologies now and make it competitive again.

Renew your SME's technologies now and make it competitive again