Implementation Provisions for Transition 5.0 Ready

Mimit recently published two decrees dated July 24 and August 6, 2024, clarifying the implementation procedures for Transition 5.0, introduced by Article 38 of Decree Law 19/2024 under the National Recovery and Resilience Plan (PNRR). The goal of the incentive is to promote the digital and energy transformation of Italian companies through investments that reduce energy consumption.
Additionally, Mimit issued a specific operational circular on August 16, divided into nine chapters, detailing every element of the incentive.

The decrees state that Italian companies making investments between January 1, 2024, and December 31, 2025, can benefit from the tax credit if they achieve at least a 3% reduction in energy consumption for the production facility or a 5% reduction for the processes involved. Investments in new tangible and intangible assets are eligible, including those listed in Annexes A and B of Law 232/2016.

The Mimit circular also provided practical examples of how to calculate the tax credit. For instance, for investments of €2.8 million in tangible and intangible assets, the tax credit could amount to €1.09 million. The benefit will be recalculated based on the actual costs at the time of investment completion.
Furthermore, clarifications were given on how energy savings should be calculated and which entities are eligible for the incentives, excluding companies in crisis or non-compliant with workplace safety regulations.