Financial and fiscal aids (الحوافز المالية والضريبية)

Aim and content

The tax credit was established by the 2016 Stability Law, in favor of companies that purchase new capital goods intended for production facilities located in Campania, Puglia, Basilicata, Calabria, Sicily, Molise, Sardinia and Abruzzo regions.
By art. 5 of the LD n. 91/2017, in relation to the investments made in the SEZs, the Credit is commensurate with the share of the amount cost of the acquired assets, for each investment project (50 million euros).
The 2020 budget law (article 1, paragraphs 218, 316 and 319, of law no.160/2019) has required the extension from 31 December 2020 to 31 December 2022 for the tax credit for investments in special economic zones (SEZ).
The Credit can be combined with other state aids and de minimis aids, within the limits of the intensity or amount of aids allowed by European legislation.

Beneficiary

Small, medium and large-sized enterprises

Eligibility requirements

The aid does not apply to:

- companies operating in the steel, coal, shipbuilding, synthetic fibers, transport and related infrastructures, energy production and distribution and energy infrastructure sectors, as well as the credit, financial and insurance sectors
- companies in distress
- companies operating in the agriculture and fisheries and aquaculture sectors

The recognition of the savings is subject to compliance with the following conditions:
     a) the beneficiary companies must maintain their activity in the SEZ area for at least seven years after the completion of the investment, otherwise the aids granted and enjoyed will be revoked;
     b) the beneficiary companies must not be in a state of liquidation or dissolution.

Eligible intervention

Interventions for the start-up or modernization/expansion of existing companies

Savings

The tax credit as collateral for the eligible expenditure is:
- 45% To SEs
- 35% to   MEs
- 25% to LEs
up to 50 millions

Capital goods

31/12/2022

Data transmission to the income revenue authority

Website

https://www.agenziaentrate.gov.it/portale/web/guest/schede/agevolazioni/credito-di-imposta-per-gli-investimenti-nel-mezzogiorno/scheda-informativa-investimenti-mezzogiorno-2016

Circulars and resolutions

https://www.agenziaentrate.gov.it/portale/documents/20143/1801887/Risoluzione+credito+investimenti+Mezzogiorno+Sisma+e+ZES.PDF/cff3ff26-aaa2-1e76-2255-fabcb4fdc5bd

https://www.agenziaentrate.gov.it/portale/documents/20143/297902/Circolare+n.+12+del+13+aprile+2017_CIRCOLARE+N.+12_E+DEL+13+APRILE+2017.pdf/4dc27648-3cc1-c946-caf5-7ea8ed600db1

https://www.agenziaentrate.gov.it/portale/documents/20143/298131/Circolare+n.+34E+del+3+agosto+2016_CIRCOLARE+N_34-E+DEL+03-08-2016.pdf/793d72bc-023d-7cef-b7b9-7be10719463e

STATUS OF ENFORCEMENT

Funded initiatives: 24
Gross investment: € 34,133,089
Tax credit: 12,420,689 euros

Sources:

Agency for Territorial Cohesion – SEZ enforcement monitoring and analysis (Report 2020)

Aim and content

2021 budget law (art. 1, c. 173-176) has established 50% income tax reduction to new companies set up in SEZ, in order to reduce the tax burden and encourage the resumption of economic activities.

Beneficiary

Start-up in SEZ

Eligibility requirements

This aid does not apply to companies in liquidation or dissolution.
To gain access, it is required that:
a) companies have to do business for at least ten years;
b) companies have to guarantee employment maintenance for at least ten years.

Eligible intervention

Economic initiatives in SEZ

50% income tax reduction effective from the six fiscal period after the start up

Instructions to submit the application

It will be identified by the income revenue authority

Aim and content

Development agreements aim to realization of one of the following development programs, on the initiative of one or more companies:
a) industrial development program;
b) development program for environmental protection;
c) development program for tourism activities.

The total amount of expenditure and eligible costs of the investments covered by the development program must not be less than 20 million euro (or 7.5 if the program concerns processing and marketing of agricultural products).
The development program must be concluded within 48 months from the granting date of the savings.
Industrial investment programs finance interventions in the manufacturing sector; in some waste management and remediation activities; in some service, information and communication activities (call centers, private security, travel agency services, etc.)

Beneficiary

The beneficiaries of these aids are single or associated companies. In the case of development programs carried out by several companies, the proponent assumes responsibility towards the Administration for the purposes of technical and economic coherence.

Eligibility requirements

Companies must:

• be constituted and registered in the Business Register
• be in the full and free exercise of their rights, not be in voluntary liquidation and not be subjected to bankruptcy procedures;
• be in an ordinary accounting regime;
• not have received and not reimbursed or deposited in a frozen account the aid identified as illegal or incompatible by the European Commission;
• if they have been recipients of partial or total revocation measures of concessions granted by the Ministry, they have returned the amount due
• not be a company in distress as identified in the GBER Regulation

Minimum investment size

Investment program: 20 M€
Proposer program: 10 M€
Participant program: 1,5 M€

Eligible intervention

Productive investment program
         - Start-up
         - Productive enhancement
         - Conversion
         - Reorganization
         - Takeover
Search, Development and innovation program

Eligible expenditure

Productive investment program
         a) company sites
         b) finishings and similar
         c) specific company infrastructures
         d) tools
         e) softwares, patents, licences, know-how and technical Skills not patented
         f) legal fees

Search and development project
         a) Human capital
         b) Equipments
         c) Research
         d) General costs
         e) Tools

• Non-repayable plant contribution payment
• Non-repayable fund contribution payment
• subsidised loan
• interest subsidy

Aid intensity

Industrial programs
SEs: 45% ESL
MEs: 35% ESL
LEs: 25% ESL

Search, development and innovation projects

* the aid intensity for industrial research and experimental development should be increased by 15% up to 80% of eligible expenditure, if specific requirements are fullfilled.

Selection procedure

Negotiated procedure. It requires Fast Track procedures to reduce time to obtain the subsidies: Development Agreement and Program Agreement, procedures in favor of large strategic projects with a significant impact on the production system

Untill all available resources

Trasmission to Invitalia (www.invitalia.it), as responsible

STATUS OF ENFORCEMENT

In Calabria: contracts funded for an investment of € 40.7M and a subsidy of € 16.8M; 7 in evaluation.

Sources:

Framework programme agreement MED - Calabria Region (updated to 01.03.2020)

Aim and content

It supports business initiatives to revitalize the local economic system and create new jobs, through expansion, restructuring and redevelopment projects.
The incentives are regulated by the Decree of the Ministry of Economic Development of 30 August 2019 with the following characteristics:
     - the minimum amount of eligible expenses is € 1 million;
     - business networks are also among the beneficiaries;
     - simplified procedures for small business investments of less than € 1.5 million:
     - flexibility of  concessions that should be granted;
     - aid for staff training;
     - development agreements for strategic investment programs (fast track)
In the Calabria region, the law 181 applies to areas in industrial crisis specified by the Minister of Economic Development Decree n. 423/2016.
The SEZ municipalities identified are Gioia Tauro, Reggio Calabria, Villa San Giovanni, Crotone, Vibo Valentia, Lamezia Terme.

Beneficiary

Small, medium and large enterprises such as limited companies, co-operatives and consortium must

Eligibility requirements

1. be properly established as a company and registered in the Registry of businesses;
2. be fully and freely within the exercise of its civil rights, not be under voluntary liquidation or insolvency proceedings;
3. not be in the list of companies that have received and, later, have not paid back or have deposited in a frozen account the aids alleged as illegal or incompatible by the European Commission;
4. not be in distress as defined in the GBER Regulation;
5. not be one of the subjects that in the previous two years have terminated the same business in the European economic area or that are willing to terminate the business within two years from the completion of the development program proposed in the involved area.

Minimum investment size

1,5 M€

Eligible interventations

Production investments aimed to:
     - creation of new production units through the application of technical, organizational and/or productive solutions innovative compared to the relative market
     - enhancement of the production capacity of an existing plant
     - upgrading of existing production units through diversification in new added products or in substantial change of the production process
     - creation of new production units or upgrading of existing production units
     - acquiring plant assets, according to art. 2, point 49, of Regulation 651/2014 (GBER)
Projects for organizational innovation
Projects for people professional development

Savings

• Financial aids can cover up to 75% of the investment through:
  Non-repayable plant contribution payment
• Non-repayable fund contribution payment
• subsidised loan

Eligible expenditure

Productive investment programs:
     a) Company sites
     b) finishings and similar and specific company infrastructures
     c) Tools
     d) Software and information technologies related to productive requirements
     e) physical assets
     f) Capital goods, tangible and intangible property, functioning to digital and technological conversion 
     g) Counselling (required by art. 18 - Regolamento di Esenzione 651/2014 – GBER)

Innovation management programme
     a) employees involved in the project activities;
     b) newly manufactured tools and equipment;
     c) contract research, such as skills and patents as well as consultancy services;
     d) general project costs;
     e) tools used for developing the project.

Training programme
     a) costs for training;
     b) costs for traineers and general expences

Selection procedure

Automatic procedure

Deadline

In the Calabria region, resources are not avalaible

Instructions to submit the application

Trasmission to Invitalia (www.invitalia.it), as responsabile subject

Website

https://www.invitalia.it/cosa-facciamo/rafforziamo-le-imprese/rilancio-aree-industriali-l181-89

STATUS OF ENFORCEMENT

In Calabria 4 applications were financed for an investment of € 16.5M and € 12.4M in subsidies. Other applications is under evaluation.
There is only one intervention financed in the Calabria SEZ areas.

Sources:

Invitalia, l. 181/89, status of enforcement (updated to       november 2020)

Aim and content

This fund encourages the development of craft company system of the Calabria Region and it aims to provide grants for interest relief and equipment ones, according to the guidelines of RCD n. 580/2017 and n. 186/2018.
This aid consists of:
     - grants for interest relief assumed by Banking Institutions;
     - partial reimbursement of the cost of the guarantee issued by the Confidi;
     - equipment grants up to a limit of 65% calculated on the investment costs required by the Regulations.

The craft companies in Calabria, in the form of co-operative or consortium, registered according to law 443/85, which have stipulated loan agreements with credit institutions for the realization of tangible and intangible investments.

Eligibility requirements

Beneficiaries must:
     - be up to date with the rules of the Italian legal system in the field of social security, welfare and insurance, safety for the workplace, collective bargaining agreements;
     - not be defaulted in regard to any other public funding / grants previously granted by the Calabria Region and / or managing bodies;
     - be up to date with the anti-mafia legislation.

Maximum amount of eligible grant

The maximum amount of eligible grant cannot exceed € 70,000.00.

Eligible intervention and expediture

The bank credit must be allocated :
      a)  renovation,, expansion and modernization of the workplace;
      b)  purchase of new and used equipments,
      c) purchase of registred vehicol as commercial use, both new and used,  for productive process;
      d) purchase of hardware, software and expenses for the realization of websites;
      e) working capital replenishment in order to create stocks of raw materials and finished products.

Savings

This aid consists of grants for interest relief and of partial reimbursement of the cost of the guarantee issued by the Confidi; as well as of equipment grants up to 20% or 65% for some set up costs, with reservation.

Selection procedure

Automatic procedure

Deadline

Until all available resources

Instructions to submit the application

The proposer should submit the application form available on Fincalabra website

Website

https://www.fincalabra.it/index.php/attivita/fondo-artigianato

STATUS OF ENFORCEMENT

Sources:

Fincalabra SpA (updated to       november 2020)