Tax credit

The “Decreto-legge (Law Decree) Sud” established a tax credit for companies that make initial investments in capital goods intended for production facilities located in the assisted areas of the regions of Campania, Puglia, Basilicata, Calabria, Sicily, Sardinia and Molise (areas 107, 3, a), TFEU) and in the assisted areas of the region of Abruzzo (areas 107, 3, c), TFEU), as identified by the Regional Aid Map 2022 2027.

Investment, contained in an initial investment project as defined in Article 2, points 49, 50 and 51, of Commission Regulation (EU) No. 651/2014 of June 17, 2014, relating to the purchase or leasing, of new machinery, plant and miscellaneous equipment intended for already existing production facilities or which are being planted in the territory, as well as the purchase of land and the acquisition, construction and expansion of real estate instrumental to the investment (the value of land and real estate may not exceed 50 percent of the total value of the subsidized investment), are eligible for aid.

The credit will be commensurate with the share of the total cost of the assets purchased or, in the case of real estate investments, made from January 1, 2024 to November 15, 2024, subject to a maximum limit of 100 million euros for each investment project. In any case, investment projects of less than 200,000 euros are not eligible for facilitation.

Excluded from the facilitation are the steel, coal and lignite industries, transportation and related infrastructure, energy production, storage, transmission and distribution, and energy infrastructure, broadband as well as the credit, financial and insurance sectors.

Access to the procedural simplification scheme of the single authorization, provided for in Articles 14 and 15 of Decree-Law No. 124 of 2023, is not, in any way, a necessary prerequisite for the use of the tax credit.

The tax credit is governed by Article 16 of Decree-Law No. 124 of September 19, 2023, coordinated with Conversion Law No. 162 of November 13, 2023.