The Transition 5.0 Plan: between sustainability and innovation

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Transition 5.0 is an Italian government initiative introduced to promote digital transformation and business sustainability. This plan is financed through funds from the National Recovery and Resilience Plan (PNRR) and the RepowerEU program, with a budget of more than 6 billion euros.

The Transition 5.0 Plan aims to support companies in their evolution toward more sustainable and digitized production models, emphasizing environmental sustainability and increased energy efficiency on the one hand, and through the adoption of advanced technologies, including robotics, artificial intelligence, Internet of Things, 3D printing and cloud computing, on the other.

These goals are reflected in incentives for the adoption of innovative technologies, energy efficiency improvements and the integration of renewable energy sources.

Incentives and tax credits

The plan offers tax credits for expenses incurred by businesses in new investments between Jan. 1, 2024, and Dec. 31, 2025. The incentives are available for:

  • tangible and intangible capital goods (Art. 6 Decree No. 19 of July 24, 2024): facilities for investment in assets (machinery, robots, equipment and software, including those for monitoring energy consumption) related to production management systems .
  • Energy consumption reduction tax credits (Art. 10 Decree No. 19 of July 24, 2024): this is an incentive for investments aimed at reducing energy consumption by at least 3 percent for the production structure or 5 percent for the production processes involved.
  • Tax credits for self-generation and self-consumption from renewable sources (Art. 7 Decree No. 19 of July 24, 2024): includes energy storage facilities.
  • training: the Plan (Art. 8 Decree No. 19 of July 24, 2024) provides for facilitations within the limit of 10 percent of total investments for personnel training, up to a maximum of 300,000 euros. Specifically, expenses for training activities provided by parties outside the company are eligible for relief. The training must have a minimum duration of 12 hours with a final verification and relevant certificate.

Tax credit rates vary according to the level of energy savings achieved, and companies must meet specific certification requirements to access the incentives. Tax credits can be combined with other benefits within the various limits specified by the Decrees.

Beneficiaries

The beneficiaries of the Transition 5.0 Plan, according to the decree, are all Italian Resident Enterprises with registered or operational headquarters in Italy, regardless of their legal form, economic sector, size or tax regime, as well as Stable Organizations of Non-Resident.

Decree No. 19 of July 24, 2024, clearly excludes companies in a state of voluntary liquidation, bankruptcy, compulsory liquidation, arrangement with creditors without business continuity or subject to other bankruptcy procedures. Also excluded are companies that are the recipients of prohibitory sanctions under Legislative Decree No. 231 of June 8, 2001, or that do not comply with workplace safety regulations or are in default of their contribution obligations.

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Project Requirements

Projects have two main requirements.

  • Projects were started after 1 January 2024 and completed by 31 December 2025.
  • The investments must relate to new tangible and intangible assets that are instrumental to business operations and lead to a reduction in energy consumption of at least 3% for the production structure or 5% for the production processes concerned.

Conclusion

Transition 5.0 aims at balancing digital innovation and ecological sustainability, putting them in close connection. Certainly, the sectors that can benefit from the Plan are manufacturing and logistics, which can improve and enhance what has already been implemented.