Italy’s Ministry of Business and Made in Italy published the Decree of 24 July 2024 in the Official Gazette, on 6 August 2024, introducing a new tax credit aimed at promoting investments in innovative energy-saving technologies for qualifying resident companies.
This tax credit is also available for permanent establishments of non-residents in Italy who invest in qualifying assets within productive facilities in the country from 1 January 2024 to 31 December 2025.
The tax credit is applicable until 31 December, 2025.
The credit amount is determined by the decrease in energy consumption attained. Projects that achieve energy savings of at least 3% for facilities or 5% for production processes can qualify for the tax credit
Tax credits
- 35% of the acquisition cost for investments up to EUR 2.5 million;
- 15% for investments between EUR 2.5 million and EUR 10 million;
- 5% of the investment cost for investments between EUR 10 million and EUR 50 million.
However, if energy savings exceed certain thresholds, the benefits increase:
- to 40%, 20%, and 10% if savings exceed 6% for facilities or 10% for production processes;
- to 45%, 25%, and 15% if savings surpass 10% for facilities or 15% for production processes.
