Industry 4.0 bonuses (today Transition 4.0) and the New Sabatini 2023 are two excellent opportunities for agribusinesses that want to focus on innovation to remain competitive in their sector.
Developed by the Ministry of Economic Development and the Ministry of Business and Made in Italy with the aim of increasing the productivity of Italian companies, these facilities allow for significant incentives on the cost oftechnological innovation, with the purchase of tangible and intangible assets, such as software, systems and system integration, platforms and applications.
Let’s see together how it works.
Toward the 2023 Transition 4.0
Digitization, innovation, sustainability and the South: these are precisely the keys to interpreting the latest editions of the Budget Law, which refines and strengthens the New Sabatini, increases investment in digital assets of theformer Industry 4.0, strengthens support for some territories in the South with new contribution percentages and not least introduces a new share of financing for thepurchase of low-impact machinery in order to improve the eco-sustainability of products and processes.
Thanks to these incentives, 2023 is shaping up to be a year full of opportunities especially for agribusinesses (which are struggling the most to keep up in the digitization process) and will in fact be able to envisage the purchase of ERPs, MESs and WMSs to meet specific needs such as:
- Easily manage and automate business processes(from administration to production);
- Improve the collection and analysis of information;
- Promote data sharing among all organizational areas and supply chain actors;
- Control and reduce inventory, waste and consequently invisible costs.
It is important to keep in mind that what may fall under the Industry 4.0 tax break may also fall under the New Sabatini tax break, generating an investment incentive of a magnitude never seen in the past.
Industry 4.0 Bonus: Investment in technologically advanced intangible assets
The Industry 4.0 Bonus is a tax break to incentivize companies to invest in technologies and capital goods that promote digital transformation andinnovation of production processes.
Specifically, the “Investment in Intangible Assets” section covers the deduction of costs incurred for software, systems and system integration, platforms and applications, and cloud computing services, used to foster the implementation of 4.0 technology.
This bonus enables companies to reduce their tax burden and enhance competitiveness through the adoption of advanced IT solutions.
The 2023-2025 tax credit grants a 20 percent bonus only for 2023, and then drops by five percentage points each year:
- 20% for investments until December 31, 2023 (or June 30, 2024, if by 2023 the order is found to have been accepted and 20% down payments made);
- 15% for investments until December 31, 2024 (or June 30, 2025, if by 2024 the order is found to have been accepted and 20% down payments made);
- 10% for investments until December 31, 2025 (or June 30, 2026, if by 2025 the order is found to have been accepted and 20% down payments made).
All healthy businesses resident in Italy, including permanent establishments of nonresidents, can access the incentives as long as they comply with workplace safety regulations and properly pay workers’ contributions.
New Sabatini 2023: 30% subsidy on digital assets for agribusinesses
La New Sabatini is an initiative aimed at facilitating access to credit and strengthening the competitiveness and digitalization of production paths by offering financial support for the purchase or lease acquisition of machinery, equipment, plant, capital goods for production use, as well as hardware, software and digital technologies.
And it is precisely these digital investment goods that, in the regulations governing the application of the New Sabatini Law 2023, raise the state’s contribution from 2.75 to 3.575 percentage points, as compared to ordinary goods they go toward business interconnection, and thus in the direction of ecological transition.
However, to obtain the 30 percent subsidy on the purchase of digital goods (3,575 instead of 2.75 percent), certain conditions are required:
- CNC or PLC control,
- Interconnection to factory computer systems with remote uploading of instructions,
- Automated integration with the factory’s logistics system or with other machines in the production cycle or with the supply network,
- presence of machine/human interface, perfect adherence to occupational health and safety parameters.
In addition, the goods must have at least two of the following three characteristics:
- remote maintenance systems
- telediagnosis or remote control
- Set of sensors for continuous monitoring of working conditions and process parameters, or comply with the cyberphysical model
The New Sabatini is designed for SMEs, i.e., those classified as micro, small and medium-sized enterprises (including those in the agribusiness sector) and that meet the following requirements: registration in the appropriate registers, not being in liquidation or bankruptcy proceedings, not having received illegal aid or not having repaid it, not being in difficulty, and having at least one operational headquarters in Italy (at the end of the investment).
Another great advantage is its coverage through the Small and Medium Enterprise Guarantee Fund, which can be up to 80 percent of the amount requested and at no additional cost.
However, it is important to note that the maximum duration of financing to qualify for the New Sabatini is 5 years and that it has a minimum threshold of 20,000 euros and a maximum of 4 million euros for individual companies, although there is the possibility of more financing for groups of companies.
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