The Transition Decree 5.0 is a measure that groups together a series of incentives specifically dedicated to Italian companies and aimed at subsidizing all those economic investments capable of contributing to the digital transformation and energy efficiency of production systems.
Last June, this provision was published in the Official Journal, a hundred days later than previously planned and with numerous changes to the original text, finally dispelling the climate of uncertainty that reigned among companies awaiting the final communication.
This important decree, approved by the European Commission for the two-year period 2024-2025 to complete and update the previous Transition Plan 4.0 and related to the ambitious PNRR program, is inspired by the fundamental principles of the green and digital economy, such as environmental sustainability and energy saving.
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Regulatory references
The drafting of the text of the Transition Decree 5.0 was handled by the two Ministries of Business and Made in Italy (MIMIT) and the Ministry of Economy and Finance, which, at the moment, are still awaiting the final examination of the text by the Italian Court of Auditors and the European Commission.
The reference regulation that explains, in detail, the implementation methods of the Transition Plan 5.0, is article 38 of Legislative Decree 2 March 2024 n. 29, published in the Official Journal and then converted, with some significant changes, by Law 29 April 2024, n.59.
Once the Court of Auditors gives its positive opinion – hopefully by the end of July 2024 -, the text will be published on the MIMIT website, with a notice in the Official Journal, and probably accompanied by a technical circular listing, in more detail, the various aspects of the provision.
Transition Decree 5.0: download the text uofficial of the implementing decree
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What does the decree provide and who are the beneficiaries?
The Transition Decree 5.0 provides for a series of incentives, in the form of tax creditfor all those companies that, between 1 January 2024 and 31 December 2025, decide to invest in new technological production plants, necessarily located on Italian territory, inspired by the green and digital transition and oriented towards reducing energy consumption.
The companies addressed by the decree, therefore, are not only those linked to the manufacturing world, but all those that are permanently resident on national soil, regardless of the tax regime to which they are subject, their legal form, size and sector of activity.
The Transition Plan 5.0 provides incentives, dividing them mainly into three areas:
- the one related to energy efficiency, with an investment of 3,780 million Euros, aimed at purchasing tools that favor the digital transition of companies;
- the one related to self-consumption and self-production of energy from renewable sources, financed with 1,890 million Euros;
- the one connected to staff training and the development of green skills, which will be able to benefit from a grant of 630 million Euros.
Among the excluded subjects, who will not be able to request this type of relief, there are productive companies in economic difficulty or those that have received interdictory sanctions, which have led to the suspension or revocation of authorizations and licenses for not having respected, for example, safety regulations or for not having paid employees the social security contributions required by law.
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Innovation projects that can be financed
In order to access the benefits provided by the Transition Decree 5.0, it is mandatory to make certain types of tangible and intangible investments, including, first and foremost, the purchase of capital goods capable of reducing the company’s energy consumption and to be used for at least 5 years.
Among the goods that can be purchased are:
- machinery, software and 4.0 systems;
- platforms or applications that allow continuous monitoring of systems and that show energy consumption and self-produced and self-consumed energy in real time;
- 4.0 software aimed at business management, but only if purchased together with software intended to monitor consumption.
To promote self-production and self-consumption of energy from renewable sources, companies can take advantage of the government contribution provided for the purchase of storage systems and solar panels, generators and transformers, provided that these instruments have been produced within the European Union, that they have an efficiency of at least 21.5%, and that, within one year of completing the installation, they are connected to the network of energy service managers.
Finally, as regards staff training projects, aimed at enabling employees to acquire technological skills related to the digital and energy transition of production processes, expenses cannot exceed the threshold of 300.000,00 Euro and cannot exceed the 10% of the total investment value of the project.
Furthermore, training courses cannot last less than 12 hours and must dedicate at least 4 hours to explaining subjects such as the digitalization of business processes, cybersecurity, Business Analytics (BA), AI and Machine Learning (ML).
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What is the maximum amount of money that can be paid out?
The Transition Decree 5.0 was financed with 6.3 billion euros for the two-year period 2024-2025. The maximum ceiling of investments that can be disbursed for each individual beneficiary company is 50 million euros per yearwith reference to the year in which the innovation projects are completed.
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The expected rates
The Transition Decree 5.0 provides for various tax credits, which vary based on the level of energy efficiency or energy savings obtained by making investments, and which present rates that can increase up to 45% of the overall investment, depending on the results achieved after the intervention.
Furthermore, for small and medium-sized businesses, it is possible to add to the tax credit also the expenses incurred to produce the various mandatory certifications, up to a maximum ceiling of 10,000.00 Euro.
The tax credit can be used exclusively as a set-off through the F24 form, to be submitted electronically to the Revenue Agency, and cannot be assigned or transferred (article 17 of Legislative Decree no. 241/1997).
Furthermore, this credit can be used by 31 December 2025, the date by which the investment must be made and the incentive must be used.
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The mandatory certifications required
In order to ensure maximum transparency on the different phases of the funded interventions and on the provision and use of the incentives, the Transition Decree 5.0 requires that an ex ante and an ex post certification of the investments be drawn up, which can then be accompanied by a further certification by the person in charge of auditing the accounts: this double check is essential to ensure that only projects capable of contributing substantially to the green and digital transition and that fully comply with the provisions of the law benefit from the incentives allocated by the Government.
The ex ante certification is issued by an external examiner, who will have to certify the reduction in energy consumption achievable after having purchased and made operational the capital goods and the self-production and self-consumption systems of renewable energy, operated by specially trained personnel.
The ex post certification, however, always issued by an external examiner, must attest to the actual implementation of the investments, based on what is reported in the ex ante certification, and the successful connection of the capital goods to the company’s production management system or to the supply network.
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How to access the tax credit
To avoid the risk of making mistakes when submitting the application, it is advisable for companies wishing to access the tax credit provided for by the Transition Decree 5.0 to contact a professional in the management of administrative practices, who can carry out this task also by making use of the legally recognized and accepted tool for this procedure, the digital signature.
To request the credit, it is necessary to send an electronic request using the standard form on the GSE website, the Energy Services Manager, in which the following must be indicated:
- the complete description of the investments;
- the cost of investments;
- the certifications required by law.
Once the documentation has been received, GSE proceeds with the data check and the verification of the validity of the certifications.
Subsequently, the Manager communicates to MIMIT, the Ministry of Business and Made in Italy, the list of companies that have demonstrated that they can legally access the incentives provided for by the Transition Decree 5.0, reserving the requested economic amount.
Finally, this company, wholly owned by the Ministry of Economy and Finance (pursuant to art. 3, paragraph 4 of Legislative Decree no. 79/99), completes the procedure by sending the list of beneficiaries of the incentives to the Revenue Agency as well.
After five days from this communication, within the deadline of 31 December 2025, the tax credit can be used by companies participating in the initiative.
Each company can activate only one request at a time: only at the conclusion of a procedure, which can occur due to expiration, renunciation or approval by the GSE, is it possible to proceed with the request for new benefits.
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Transition Decree 5.0: timing, cumulation and retroactivity
The Transition Decree 5.0 can be combined with other incentives that provide for the same costs, provided that the accumulation of the benefits does not lead to exceeding the cost incurred.
On the contrary, it cannot be combined with the tax credit provided for by the Transition Decree 4.0 and with the single ZES instrument, the Special Economic Zone for the South.
Finally, the Plan has very tight timeframes, which include its retroactive application to investments made from 1 January 2024 and its completion by 31 December 2025.
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Final considerations
In conclusion, the Transition Decree 5.0 represents a unique opportunity for Italian companies, which, by drawing on the funding provided, can thus improve their energy efficiency, contribute to the green transition and update themselves, thanks to the use of technologically advanced digital tools.
By taking advantage of the important incentives provided by the Decree, participating companies will be able to gain an enormous advantage not only in terms of image and productivity, but also in terms of growth, positioning themselves as forerunners of the green and digital revolution that is so necessary at a national level.
