Transition Plan 5.0

What is PlanTransition 5.0?

PlanTransition 5.0 is designed to push Italian companies towardinnovation, energyefficiency and energy sustainability, key elements ofIndustry 5.0. This 21-comment program aims to incentivize the adoption of advanced technologies that promote energy conservation and efficiency, crucial for a sustainable future.
Below is an excerpt of what are the points that connect to the technologies produced by Icopower that can help you not only save on electricity consumption (and thus reduce CO2 emissions) but also enjoy government incentives.

The focus on the three areas of energy sustainability:

  • the purchase of capital goods 4.0
  • The promotion of self-consumption from renewable sources (e.g., photovoltaics and cogeneration, but excluding biomass)
  • Training in skills related to the green transition.
Incentive rates vary according to the energy efficiency class achieved and the amount of investment. An important detail is the certification of projects, both at the preliminary and final stages, to ensure compliance with the criteria for reducing energy consumption. With Transition 5.0, the government aims to concretely support companies on the path to a sustainable and efficient future.

Who is eligible for the Transition 5.0 Plan incentives?

The Transition 5.0 Plan is an inclusive initiative, designed to embrace all business entities on the Italian territory. It is dedicated to all businesses, regardless of their legal form, the sector in which they operate, their size or the tax regime to which they are subject. The main objective is to stimulate new investments in production facilities within our country, within projects that aim at concrete innovation capable of reducing energy consumption.
However, there are exceptions. Companies currently experiencing financial difficulties or those that have been sanctioned with disqualification orders will not be eligible for benefits under the plan.

How does one access the incentive for the Transition 5.0 Plan?

To access the incentive, companies must focus on investments in capital goods, both tangible and intangible, as in the previous PlanTransition 4.0, but with an important new feature: these assets, in addition to being interconnected to the company's production management system or supply network, must be included in projects that lead to a reduction in energy consumption.
The Transition 5.0 Plan also provides incentives for the installation of photovoltaic panels and energy storage systems. The incentive is limited to PV panels produced in EU member states with an efficiency of at least 21.5 percent. In addition, there is an increased incentive for high-efficiency PV panels. Investments in self-consumption and self-generation of energy must be part of an innovation project that also includes the purchase of capital equipment. Icopower equipment allows these investments to qualify for the tax benefit.

The rates

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.

What to do to access the Transition 5.0 Plan incentives.

Businesses wishing to benefit from the incentives must prepare to manage a number of crucial documentations, which include ex ante and ex post certifications, as well as specific communications to the Ministry of Business and Made in Italy before and after making investments. This process ensures that investments are traceable, transparent and in line with the objectives of the plan.
In addition, certification by an independent evaluator that the investments are eligible and have been completed according to established criteria is required. These documentary steps are essential to ensure that the investments meet the requirements of the plan and to facilitate access to the promised incentives.
Even more important is the timing: the start of use of the incentive cannot exceed December 31, 2025. This means that all documentary procedures, ordering, delivery, installation and interconnection of the assets must be completed by this date.

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01

INVESTMENT PROJECT

Investment project
02

CERTIFICATION
EX ANTE

Ex-ante certification
03

COMMUNICATION
EX ANTE TO GSE

Ex-ante communication to the GSE
04

INVESTMENT

Investment
05

SENDING PERIODIC COMMUNICATIONS TO THE GSE

Submission of periodic communications to the GSE
06

ASSET INTERCONNECTION

Asset interconnection
07

CERTIFICATION
EX POST

Ex-post certification
08

COMMUNICATION
EX POST TO THE GSE

Ex-post communication to the GSE
09

CONFIRMATION
FROM GSE

Confirmation from GSE
10

OFFSET
IN F24

Compensation in F24
11

AUDITOR'S CERTIFICATION

Auditor's certification

How Icopower can help you

Icopower's goal is to help its customers save on electricity consumption and reduce CO2 emissions. Over the years now, thousands of companies in all commodity sectors have benefited from our support to make their companies more efficient and to take advantage of the various incentives that have been made available. With the support of our established partners we can help you, step by step, not only in identifying how to save money but also how to take advantage of the various grants made available by the state. Contact us directly and we will be there to support you to the best of our ability.  

Single SEZ 2024

Special Economic Zones (SEZs) are areas designated in Italy with the goal of promoting economic growth in southern regions by offering tax benefits and administrative simplifications to attract both local and foreign investment.

Structure and Governance

The Single SEZ, which is operational as of Jan. 1, 2024, replaces the previous eight Special Economic Zones, unifying the territories of Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sicily and Sardinia. A "Cabina di Regia" is established under the Prime Minister's Office to provide guidance, coordination, supervision and monitoring of the Single SEZ. This new governance structure aims to provide specific benefits and set limits for eligible investments.

Sector-Specific Benefits and Eligible Expenditures.

  • Beneficiary Sectors:All enterprises, includingthose in primary production ofiagricultural products, fishing, aquaculture and processing/marketing of related products.
  • Eligible Expenditures: Investment in new machinery, equipment and facilities for existing or new businesses, as well as construction or expansion diterreni and buildings.

Incentives and Development in the Single SEZ

As of January 1, 2024, a subsidy in the form of a tax credit is granted to companies making capital investments in the Single SEZ, complying with the limits set by the 2022-2027 Regional Aid Map. Eligible investments include the acquisition of new machinery, equipment and tools for existing or new production facilities, as well as the acquisition, construction or expansion of investment properties. As of January 1, 2024, therefore, Icopower will be crucial for businesses making capital investments in the Single SEZ, taking advantage of the tax credit offered.

Exclusion from Tax Credit

The tax credit is not applicable to enterprises in specific sectors such as steel, coal, transportation (excluding storage and support activities), power generation, storage, transmission and distribution, broadband, credit, finance and insurance. It also does not apply to enterprises in liquidation, dissolution or distress.

Accessibility and Digital Support

A web portal for the Single SEZ is established to provide information on benefits for businessesand ensure accessibilityto the Single Digital Counter (S.U.D. ZES). Businesses interested in starting economic activities or establishing industrial, manufacturing and logistics activities within the Single SEZ should submit an application, accompanied by the required documentation, to the Single Digital Desk (S.U.D. ZES). More information can be found at: http://www.strutturazes.gov.it/

FAQs

What tax benefits are provided for enterprises in the ZES Zone?

Businesses starting a new business in Special Economic Zones (SEZs) can benefit from a 50 percent reduction in income tax. This significant tax break was introduced in the Budget Law 2021 to support investment in these areas.

Which Italian regions are included in the single SEZ?

As of Jan. 1, 2024, the Special Economic Zone for the South, known as a single SEZ, will be established, incorporating all municipalities in the following regions: Abruzzo, Basilicata, Calabria, Campania, Molise, Apulia, Sicily and Sardinia.
The contents within this article are merely indicative and may be out of date and contain inaccuracies.

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