Cumulability of Transition 5.0 and ZES, A New Chapter for Businesses
Transition 5.0 is set to become a driving force for businesses, thanks to a series of changes that make this tool more accessible, flexible, and, most importantly, combinable with other incentives. This new framework, currently being defined with the presentation of two amendments, is the result of intense dialogue with the European Union and aims to relaunch a program that has been underutilized so far.
Let’s preview the main updates and the scenario that would unfold if the cumulability, especially with the incentives for Special Economic Zones (ZES), is confirmed.
More Time for Investments
One of the most significant changes should involve the extension of the time frame for completing investments. Businesses will have until April 30, 2026, to install the systems, gaining four additional months compared to the previous deadline. The reporting deadline with the European Commission remains set for June of the same year, but the Ministry of Economy and Finance is committed to streamlining its activities, thus providing businesses with more flexibility to organize and finalize their projects.
Cumulability of Transition 5.0 and ZES
Another significant development concerns the possibility of combining the incentives from Transition 5.0 with those, for example, provided for the Special Economic Zones (ZES). The formal decision from the EU is expected in the coming days, but signs already point to an imminent green light.
This change could represent an unmissable opportunity for businesses in Southern Italy. The combination of incentives would allow companies to receive reimbursement of up to 100% of their investment, significantly improving the profitability of the projects. In practice, a company that installs new systems or renews its technological assets could almost entirely cover the costs thanks to the tax credit from Transition 5.0 and the tax reliefs from the ZES.
Simplifications in the Calculation of Energy Savings
To access the incentives of Transition 5.0, businesses will need to demonstrate the energy savings achieved through new investments. Here comes another potential simplification: replacing machinery that has been depreciated for at least 24 months will no longer require complex technical studies. In these cases, access to the tax credit will be direct and automatic, with a minimum rate expected to increase from 30% to 50%, according to the proposed amendments to the Budget Law.
A New Scenario for Businesses
The changes made to Transition 5.0 aim to revitalize a tool that has been underutilized, with only 130 million booked by 413 companies out of a total of over six billion available. The potential is indeed enormous, especially when considering the possible combination with the ZES.
This scenario could encourage businesses to invest by taking advantage of incentives to modernize their systems, increase energy efficiency, and improve competitiveness in a challenging economic context. For companies in the South, in particular, this synergy would represent an unprecedented opportunity to catch up with the recovery and bridge the infrastructure gap with more developed regions.
What to Do to Prepare
To fully take advantage of the opportunities offered by Transition 5.0 and its cumulability with other incentives, such as the ZES, businesses must adopt a strategic approach based on three key actions:
- Consult Experts: To optimize the benefits of incentives, it is essential to rely on targeted technical consulting, which is crucial for navigating the incentives landscape.
- Evaluate Strategic Investments: The priority should be on interventions that improve energy efficiency or modernize outdated machinery, ensuring a sustainable and competitive economic return.
- Plan the Timing: The extension of deadlines allows for more careful planning, but reporting remains an essential element for accessing the incentives.
Thanks to its extensive experience in energy efficiency, Ciesse supports businesses throughout all these phases, offering comprehensive and customized solutions to best navigate this transition.
Transition 5.0, with its new rules and the prospect of cumulability with ZES, is no longer just an opportunity but a call to action for Italian businesses. In an economy experiencing a slowdown, taking advantage of these tools can make the difference between stagnation and growth. Proper preparation and prompt action will be key to turning potential into concrete results.