The Italian government has issued its long-awaited decree aimed at boosting growth in the economy, particularly through tax incentives for construction companies, infrastructure projects and energy efficiency.
Corrado Passera, the Economic Development Minister, disclosed that the decree will mobilize resources of up to EUR80bn (USD101.5bn) – around half from private bond issuance, both for infrastructure projects and for small and medium-sized enterprises (SMEs). Mario Monti, the Italian Prime Minister, called its provisions “structural and very robust”.
Amongst its measures to increase the employment of younger workers, the decree introduces a 35% tax credit for businesses that provide full time employment for “highly qualified” workers, possessing technical or scientific degrees. The credit will be given subject to the proviso that they should be employed for a minimum of three years.
For the benefit of families and their homes, and also to stimulate businesses providing the work involved, the individual income tax break for home refurbishing will be increased from 36% to 50% until June 30, 2013, for costs involved of up to EUR96,000 (at the moment the limit is EUR48,000), while expenses involved in energy efficiency improvements will be allowed a tax reduction of 50% from January 1, 2013 to June 30, 2013 (the existing 55% tax break will remain until December 31 this year).
