How to achieve up to 100% savings on investments with ZES South 2025 and Transition 5.0

Special Economic Zones (SEZs) are geographically defined areas within the national territory, established with the aim of fostering economic development through tax incentives and administrative simplifications. Companies operating in, or planning to establish themselves within these zones, can benefit from a range of incentives.

One of the main incentives is a tax credit granted to companies that invest in new capital assets intended for production facilities located within Special Economic Zones (SEZs). This incentive has also been extended for the year 2025.

Eligible Investments

The expenses eligible for the tax credit include:

• Machinery: purchase of new machinery intended for production activities.
• Systems: installation of new systems functional to the production process.
• Equipment: acquisition of various equipment required for production.
• Real estate assets: purchase, construction or expansion of real estate assets used for the investment, provided that the value of land and buildings does not exceed 50% of the total value of the eligible investment.

Tax Credit Rates

The tax credit rate varies depending on the region in which the SEZ is located and the size of the company:

• Regions of Calabria, Campania, Puglia and Sicily: 40% tax credit.
• Regions of Basilicata, Molise and Sardinia: 30% tax credit.
• Region of Abruzzo: 15% tax credit.

In specific areas, such as Taranto in Puglia and the Sulcis area in Sardinia, the base rate is 50% and 40% respectively. For small enterprises, an additional 20% increase applies, while for medium-sized enterprises the increase is 10%.

Conditions for Accessing the Incentive

To access the tax credit, companies must meet the following conditions:

• Minimum investment: the investment project must have a minimum value of EUR 200,000.
• Time requirement: the investments must be retained in the production facility located within the SEZ for at least five years following the completion of the investment.
• Notification: companies must submit a specific notification to the Italian Revenue Agency, indicating the eligible expenses and the amount of tax credit requested.

Cumulation with Other Incentives

The SEZ tax credit can be combined with other incentives, such as the tax credit for investments in Industry 4.0/5.0 capital assets, provided that this cumulation does not exceed the total cost of the investment.

Article 16 of Decree-Law No. 124 of September 19, 2023 introduced a contribution in the form of a tax credit in favour of companies investing in capital assets intended for production facilities already in operation or to be established within the Single Special Economic Zone (Single SEZ) for Southern Italy. This area includes Basilicata, Calabria, Campania, Molise, Puglia, Sardinia, Sicily and Abruzzo.

The tax credit is calculated on investments made between January 1, 2024 and November 15, 2024, with a maximum limit of EUR 100 million per project. Investment projects below EUR 200,000 are not eligible.

The credit can be used exclusively as an offset and complies with the limits set by the GBER Regulation. It can be combined with de minimis aid and other State aid, provided that the cumulation does not exceed the limits established under EU regulations.

The actual incurrence of eligible expenses must be certified by a statutory auditor. In addition, all economic operators who submitted the original notification between June 12 and July 12, 2024 must submit a supplementary notification to the Italian Revenue Agency between November 18 and December 2, 2024 to confirm the completion of the investments.

Article 8 of Decree-Law No. 155 of October 19, 2024 introduced the possibility of including additional investments or investments exceeding the amount declared in the original notification.

For the submission of the supplementary notification, the updated form issued by the Italian Revenue Agency on November 6, 2024 must be used. The percentage of the tax credit available is equal to 100% and will be confirmed by the Agency through an official provision on December 12, 2024.

The incentives offered by the SEZs represent a significant opportunity for companies planning to invest in Southern Italy, fostering economic development and innovation in the areas concerned. To ensure proper access to these benefits, it is essential to comply with the conditions set out by the relevant regulations and to stay up to date with any legislative changes.

To maximise the benefits of the Single SEZ and ensure an efficient working environment that complies with current regulations, BORIN offers tailored solutions for companies:

• HPL changing room furnishings to ensure hygiene and durability.
• Hygiene stations for employee safety.
• Tailor-made design of washrooms and break areas.
• Water line pressurisation machinery to improve operational efficiency.