Tax Credit ZES: Unlocked incentives for 1.8 billion euros

Established the Single Special Economic Zone (ZES) for the South starting from January 1, 2024. The Minister of Economy Giancarlo Giorgetti signed the implementing decree for tax credits: with the publication in the Official Gazette no. 117 of May 21, the tax credit for companies investing in the single ZES of the South is unlocked. An intervention worth 1.8 billion euros allocated with the Southern decree last September. The implementing decree resolves a situation that had led many companies to suspend or renounce investments. “The decree introduces significant innovations for companies operating in the South. It is a very important step for the revival of the local economy and to support the growth of investments in the single ZES” observed the Minister for European Affairs, the South, Cohesion Policies and the NRRP, Raffaele Fitto.

The Single ZES Scenario

The new credit replaces the Tax Credit for the South and the ZES Tax Credit in force until 2023. Within the SINGLE ZES, companies already operating and those that will settle will be able to benefit from various types of advantages, including a Tax Credit within the maximum measure allowed by the Regional Aid Map 2022-2027. From June 12 to July 12 interested companies must communicate to the Revenue Agency the amount of eligible expenses incurred from 01.01.2024 and those they intend to make by next 15.11.2024, the last date to access the incentive.

Beneficiaries of the Single ZES

The implementing decree of the single ZES establishes that all companies can access the tax credit, regardless of the legal form and accounting regime adopted, already operating or settling in the Single ZES, in relation to the acquisition of capital goods intended for production facilities located in the assisted areas of the regions Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, and Sicily, as well as in the assisted areas of the region Abruzzo, as identified by the Regional Aid Map 2022-2027.

The benefit does not apply to entities operating in the iron and steel industry, coal and lignite industry, transport, excluding warehousing and transport support sectors, and related infrastructure, production, storage, transmission and distribution of energy and energy infrastructure, broadband as well as the credit, financial and insurance sectors. Companies in liquidation or dissolution as well as companies in difficulty, as defined in art. 2, point 18, of Commission Regulation (EU) No. 651/2014 of June 17, 2014, are also excluded from the application of the benefit. For the purpose of identifying the sector of belonging, the activity code included in the ATECO 2024 table indicated in the communication form for the use of the tax credit for investments in the single ZES is taken into account.

Eligible Investments

Eligible investments are those, part of an initial investment project, carried out from January 1, 2024 to November 15, 2024, related to the purchase, also through leasing contracts, of new machinery, plants, and various equipment intended for existing or new production facilities in the single ZES, as well as the purchase of land and the acquisition, construction or expansion of buildings instrumental to investments and actually used for the exercise of activity in the production facility. In the case of instrumental real estate, investments are eligible even if they concern assets already used by the transferor or by other subjects for carrying out an economic activity.

The tax credit is commensurate with the portion of the total cost of the indicated goods, up to a maximum limit, for each investment project, of 100 million euros. For investments made through leasing contracts, the cost incurred by the lessor for the purchase of the goods net of maintenance costs is assumed. Investment projects whose total cost is less than 200,000 euros are not eligible. The credit is differentiated by regions, company size, and investment amount. In particular, the tax credit is determined:
  • at the rate of 40% of the costs incurred in relation to eligible investments in the regions Calabria, Campania, Puglia, and Sicily;
  • at the rate of 30% of the costs incurred in relation to eligible investments in the regions Basilicata, Molise, and Sardinia;
  • at the maximum rate, respectively 50% and 40%, as indicated in the current Regional Aid Map, for investments made in the areas identified for the support of the Just Transition Fund in the regions of Puglia and Sardinia;
  • at the rate of 15% of the costs incurred in relation to eligible investments in the assisted areas of the region of Abruzzo indicated by the current Regional Aid Map 2022-2027.

For investment projects with eligible costs not exceeding 50 million euros, the ceilings are increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises.

Cumulability

The ZES tax credit is not cumulative with that of the Transition 5.0 program, as explicitly provided by the latter incentive’s regulations. Cumulability is instead provided with other incentives that are not state aids, with de minimis aids and with other state aids that concern the same costs provided that the cumulation does not lead to exceeding the highest aid intensity allowed by EU rules.

Access Procedure

To access the contribution in the form of a tax credit, interested parties must communicate to the Revenue Agency, from June 12 to July 12, 2024, the amount of eligible expenses incurred from January 1, 2024, and those they plan to incur until November 15, 2024.

‍“Now companies will be able to use these resources to relaunch their investments, strengthen competitiveness, and grow the territory” concluded Minister Fitto.

Southenergy, competence at the service of companies

Incentives and Renewables: a recurring combination that requires sector operators to have increasingly well-rounded skills, ranging from technical consultancy to supporting companies in identifying optimal economic scenarios.

Numerous entrepreneurs have relied on Southenergy to undertake a virtuous path of energy transition, also benefiting from targeted facilitations and incentives to reconcile the need for credit support vs. the increase in the strategic potential of companies. If you want to request a free technical consultation contact us by filling out the following form. One of our experts will help you find the solution to your energy problem.

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