Transition 5.0: advantages and critical issues of the new tax credit

• predicts nine differentiated rates based on the range of overall investments and the reduction in energy consumption achieved, with higher intensities than the 4.0 measures (for overall investments up to 2.5 million euros the 5.0 rates vary from 25% to 45% against 20% of 4.0);
• It applies to costs of different naturewith a potentially very large calculation base (an investment of any amount in digital assets 4.0, capable of reduce energy consumption, offers the possibility of facilitating investments in self-production energy systems for self-consumption deriving from renewable sources and related storage systems for the energy produced, as well as, with limitations, the external staff training costs in technologies relevant for the digital and energy transition of production processes);
• facilitates categories of software other than those of theAnnex B annexed to Law 232/2016or software for continuous monitoring and visualization of energy consumption and self-produced and self-consumed energy or those that introduce energy efficiency mechanisms, as well as management software purchased together with them;
• allows, for photovoltaic systems equipped with certain types of modulesthe increase in the cost incurred for subsidy purposes (a cost equal to 120% and 140% respectively for those foreseen in thearticle 12, paragraph 1, letters b) and c), DL 181/2023);
• it can be combined with other discounts concerning the same costs, with the exception of the tax credit for investments in the single SEZ (ex article 16, DL 124/2023) and the tax credit for investments 4.0 (former article 1, paragraphs 1051-1063, Law 178/2020);
• is characterized by rules of improved use compared to 4.0contemplating the possibility of compensation in F24 even in a single solution, provided that by 31.12.2025 (beyond that datethe residual amount of credit will be divided into 5 annual installments of the same amount).

Criticalities

From an operational point of view, the facilitation measure is in stand bywaiting for the ministerial decree to clarify the issues crucial technical aspects and define them in detail procedural aspects.

From a technical point of view, the most complex aspect is certainly linked to main application prerequisite of the incentive: the reduction of energy consumption deriving from an investment in digital assets, new material and/or intangible capital goods 4.0.

Access to the 5.0 tax credit presupposes, in fact, the existence of a correlation between investment in capital goods 4.0 and reduction in energy consumptionat process level (at least equal to 5%) or at the production plant level in Italy (at least equal to 3%), which is not frequently encountered: the incentive will tend to be more accessible for replacement investmentscompared to investments aimed at increasing production capacity, to the internalization of processes or diversification.

The currently most debated topic concerns the method of calculating the reduction in energy consumption, in relation to the historical reference parameter, “the energy consumption recorded inthe financial year preceding the start of investments”, to the definition of “counterfactual scenarios” provided for newly established businesses and the possibility of applying them also in case of new processes and production linesto the definition of “process affected by the investment” against which it is possible to evaluate the savings.

From the point of view of procedural aspects, the critical elements to keep in mind are the following:

• the stringent deadlines and the risk that the preventive communication mechanism to the GSE entails the rapid exhaustion of available resources;
• the complexity of the process of obtaining the relief, which it requires the coordination of various professional figures (EGE or ESCo, 4.0 experts, legal auditors, qualified trainers), multiple communications to the GSE and documentary charges (the “wording” is required on invoices, transport documents and other documents relating to the investment);
• the management costs of the entire practice including energy certifications ex ante and ex post,”attestation ofthe interconnection of the goods to the company production management system or to the supply network, the adequacy and relevance of the expenses incurred” And “certification of the actual support of the eligible expenses and their correspondence to the accounting documentation prepared by the‘business” (for SMEs, the costs of energy certifications will be recognized as a direct increase of tax credit up to 10,000 euros; for companies not subject to statutory audit, the costs of accounting certification will be recognized credit increase up to 5,000 euros).

The implementing decree must also promptly define the requirements of the certifiers/attestators involved and qualified trainers, as well as specifying better the process of obtaining and the function of periodic communications to the GSE.

In summary, Plan 5.0 appears an opportunity for projects aimed at the dual digital and energy transition, especially in the presence of “driven” investments in self-production of energy from RES and staff training.

However, actually obtaining the benefit requires precision and timeliness of investment planning and subsequent implementationpunctuality and correctness in the management of obligations, effective coordination of the professional figures involved.