The Transition 5.0 Plan provides different tax credit rates, which vary according to the reduction in energy consumption achievable by the investments made. The basic rates are 35 percent for investments up to 2.5million euros, 15 percent for investments over 2.5million euros and up to 10 million euros, and 5 percent for investments over 10 million euros, up to a maximum eligible cost limit of 50 million euros per year, per company.
If the investment made leads to a reduction in energy consumption of more than 6 percent or 10 percent, the rates become even more advantageous. For the portion of investments up to 2.5 million euros, the rates rise to 40 percent and 20 percent, respectively; for the portion over 2.5 million and up to 10 million euros, they become 20 percent and 10 percent; and for investments over 10 million euros, an additional 15 percent rate applies.
BAND 1
BAND 2
BAND 3
5-10% ON PROCESS
3-6% ON PRODUCTION UNIT
10-15% ON PROCESS
6-10% ON PRODUCTION UNIT
>15% ON PROCESS
>10% ON PRODUCTION UNIT
INCENTIVES
35% for investments up to 2.5 million
40% for investments up to 2.5 million
45% for investments up to 2.5 million
15% for investments between 2.5 and 10 million
20% for investments between 2.5 and 10 million
25% for investments between 2.5 and 10 million
5% for investments between 10 and 50 million
10% for investments between 10 and 50 million
15% for investments between 10 and 50 million
What happens to new businesses?
For new companies, however, the calculation is based on a counterfactual scenario, which considers the average annual energy consumption that the company would have experienced without the energy efficiency investments. This approach ensures that each company, regardless of its operating time, can benefit equally from the plan, promoting broad participation and incentivizing significant investments in energy savings.
