The Ministry of Business and Industry and the GSE have released the Transition Plan 5.0 operational circular. This document provides companies with a technical guide for the correct application of the incentives provided for by the Transition Plan 5.0 to promote the digital and green transition for the two-year period 2024-2025.
In this article we discuss the key points of the initiative.
What is the Transition Plan 5.0 operational circular
The Transition 5.0 operational circular represents a compass for all companies intending to seize the opportunity of the incentive dedicated to the digital and energy transition through the granting of tax credits. This document accompanies and details the implementation methods of the ministerial decree published in the Official Journal on 6 August 2024. The plan is one of the main strategic initiatives envisaged by the government to create a more sustainable, efficient and resilient production and economic system through the use of innovations such as artificial intelligence, robotics, the Internet of Things (IoT) and big data. The aim is to help companies integrate advanced digital technologies and circular economy principles into industrial and commercial operations
READ HOW TO BENEFIT FROM THE TRANSITION 5.0 PLAN AND CALCULATE ENERGY SAVINGS
Key principles of the Transition 5.0 operational circular
1. Scope of application
The circular specifies that all companies resident in Italy, regardless of their legal form and economic sector, can benefit from the incentives provided for by the Transition 5.0 Plan, provided they are not insolvent, liquidated or subject to sanctions.
2. Type of eligible projects
The projects must concern investments in new capital goods, aimed at technological innovation and energy sustainability. The investments must lead to a reduction in energy consumption of at least 3% for production facilities or 5% for individual production processes. Furthermore, the projects must be started from 1 January 2024 and completed by 31 December 2025.
Incentives are provided for systems intended for the self-production of energy from renewable sources, such as photovoltaic and thermal systems, intended for self-consumption even at a distance. Finally, expenses for training personnel in technological and energy transition fields are also eligible for assistance, for a maximum of 10% of the investments made and up to a maximum of 300,000 euros.
3. Intensity of the benefit
According to the provisions of Article 10 of the Ministerial Decree “Transition 5.0”, the intensity of the benefit, i.e. the measure of the tax credit, is defined based on the percentage of reduction in energy consumption achieved by the innovation projects. The tax credit is calculated on different investment bands and reduction percentages. For production facilities, it varies from 35% to 5% depending on the level of energy savings (3-10%). For the processes involved, it varies from 40% to 10% with energy savings between 5% and over 15%. The maximum benefit covers investments of up to 50 million euros per project.
For higher investments, the measure of the benefit recognized is calculated on the basis of the reduction in energy consumption achieved by the entire innovation project and is subject to its completion, regardless of the amount of eligible costs.
4. Energy savings calculation criteria
The reduction in energy consumption that can be achieved by the production facility is calculated by comparing the estimate of consumption before and after the investment. Specific measurement and estimation criteria must be respected, based on recognized standards and energy performance indicators.
5. DNSH (Do No Significant Harm) principle
The Recovery and Resilience Facility (EU Regulation 2021/241) establishes that all projects must respect the principle of “doing no significant harm to environmental objectives” (DNSH), ensuring that there are no significant negative effects on environmental objectives, as provided for in Article 17 of EU Regulation 2020/852.
6. Submission and management procedure
To access the benefits, it is necessary to send a prior communication, a progress report and a “completion communication” of the project. Specific documentation and compliance with rigorous criteria for validating the results are required.
7. Supervision and controls
The operational circular on the Transition 5.0 plan specifies that a supervision and control activity is foreseen on the funded projects. This is to verify the correct application of the legislation and the achievement of the necessary energy saving and innovation objectives.