From the tax credits procedure to the calculation of energy savings and the requested documentation, in this article we talk about the main details of the Transition 5.0 plan.
The Transition 5.0 plan becomes operational
The Transition 5.0 plan will become operational between the end of July and mid-August, as confirmed by Marco Calabrò, head of the technical secretariat of the Ministry of Business and Made in Italy (Mimit). According to Calabrò, the negotiation with the European Commission has concluded, albeit with a few days’ delay in discussing some sensitive points, including the criterion of ‘not causing significant damage to the environment’.
“We tried to agree with Brussels on some openings regarding the rigid application of these criteria, which would have effectively led to the exclusion of entire sectors, such as agriculture and energy-intensive sectors (paper, ceramics, glass, chemicals, and so on) . I think we achieved a good balance, but this required a few more days of discussion with the European Commission.” says Calabrò in an interview on July 1st “This week the decree will be sent to the Court of Auditors for registration. In the meantime, we have already set up the communication platform for businesses, so the same day the registration takes place we will be ready to go online.” Calabrò concludes by hoping that “by mid-July everything will be fully operational.”
Transition 5.0: period and procedure for use
The innovation projects eligible for the benefit are those started from 1 January 2024 and completed by 31 December 2025, where the start date means that of the first legally binding commitment to order the assets being invested. While regarding the conclusion of investments, a distinction is made between:
- Investments in tangible and intangible capital goods, for which the rules determined by article 109 of the Presidential Decree apply. 917/1986.
- Goods for the self-production of energy, for which the completion date of the systems is considered.
- Training, the date of issue of the final certificate of the result achieved applies.
To access the benefit, the company must send a prior communication to the GSE at the start of the innovation project, with a limit of one single application per company at a time. The communication must include all the information necessary to identify the beneficiary and the project, start and completion date, eligible investments and amount of tax credit potentially due, together with the ex-ante certification.
After verifying the correctness of the data and the completeness of the documentation, within five days the GSE communicates to the company the amount of the tax credit booked, within the limits of available resources. After obtaining confirmation of the credit booking, the company must send periodic communications on the progress of the innovation project. In particular:
- within thirty days of receiving communication of the amount of the tax credit booked, the company must communicate that it has paid at least 20% of the cost of acquiring the goods.
- by 31 December 2024 to certify the payment of at least 50% of the acquisition cost and ensure that the project falls within the 2024 ceiling if the project is completed by 30 April 2025.
Once the project is completed, and in any case by 28 February 2026, the company has the duty to send a completion communication. Within ten days of the presentation of the ex-post communication, the GSE verifies the data and documentation and communicates to the company the amount of the tax credit that can be used as compensation (which cannot exceed the booked amount).
After another ten days the tax credit can be used, exclusively as compensation, immediately, in one or more installments, until 31 December 2025. In the event of failure to use the entire amount by that date, it must be used in five annual installments of the same amount.
5.0 transition and energy savings to be achieved
The tax credit is determined based on the eligible expenses within each innovation project:
- Reduction in energy consumption of the production structure located in the national territory by no less than 3% or, alternatively, reduction in energy consumption of the processes affected by the investment by no less than 5%: to the extent of 35% of the cost, for the share of investments up to 2.5 million euros, to the extent of 15% of the cost, for the portion of investment over 2.5 million euros up to 10 million euros, and to the extent of 5% of the cost for the portion of investments over 10 million euros and up to the maximum limit of eligible costs of 50 million euros.
- Reduction in energy consumption of the production structure located in the national territory by more than 6% or, alternatively, reduction in energy consumption of the processes affected by the investment by more than 10%: to the extent of 40% of the cost, for the share of investments up to 2.5 million euros, to the extent of 20% of the cost, for the share of investment over 2.5 million euros up to 10 million euros, and to the extent of 10% of the cost for the share of investments over 10 million euros and up to the maximum limit of eligible costs of 50 million euros.
- Reduction in energy consumption of the production structure located in the national territory by more than 10% or, alternatively, reduction in energy consumption of the processes affected by the investment by more than 15%: to the extent of 45% of the cost, for the share of investments up to 2.5 million euros, to the extent of 25% of the cost, for the share of investment over 2.5 million euros up to 10 million euros, and to the extent of 15% of the cost for the share of investments over 10 million euros and up to the maximum limit of eligible costs of 50 million euros.