Italians are making their businesses Industry 4.0-ready! With up to 250% depreciation allowances!

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Published on: December 3, 2018 / Updated on: December 12, 2018 – Author: Konrad Wolfenstein

Italians are making their businesses Industry 4.0-ready – @shutterstock | PaO_STUDIO

Update: Delivery is also possible by December 31, 2019, if the order was accepted by the supplier by December 31, 2018, and a prepayment of 20% of the purchase price was made.

From January 1, 2017, to December 31, 2018, Italians have the option of using a "hyper-depreciation" of 250%. Capital goods (machinery, warehousing systems, etc.) connected to a cloud or similar infrastructure can be depreciated at 250% of their acquisition cost instead of 100%.

The relevant legal provisions can be found as follows:

Budget Law 2016 – No. 208/2015 Art. 1, para. 91
Budget Law 2017 – No. 232/2016 Art. 1, paras. 8-13
Budget Law 2018 – No. 205/2017 Art. 1, paras. 30-36

Funding is available for new depreciable fixed assets that are used for business purposes:

Used as production goods
The goods must be used from the perspective of “Industry 4.0”.

2 out of 3 characters must be fulfilled:

Capital goods for remote maintenance and/or telediagnostics and/or remote control systems
Continuous monitoring of working conditions and process parameters through suitable sets of sensors and correction of process deviations in the cloud.
Integration properties between the physical machine and/or the plant with the model and/or the simulation of the behavior during the execution of the process (cyberphysical system)

Which capital goods?

Machines and equipment that are controlled by IT systems and/or operated by corresponding sensors and actuators.
Systems for quality assurance and sustainability
Devices for interactive human-machine interaction and for improving ergonomics or occupational safety according to the logic of “4.0”.

Requirements/Conditions

Control via CNS (Computer Numerical Control) and/or PLC (Programmable Logic Controller)
Networking with the company's IT systems, with the execution of instructions and/or the remote loading of "part programs".
Automated connection to the company's logistics system or supply chain and/or to other machines in the production cycle
Simple and intuitive interface between human and machine
Compliance with the latest parameters regarding safety, health and occupational hygiene

Further information available upon request.

Addendum:

The tax system makes Germany unattractive for IT companies. Last place in the location index.

"Furthermore, there are few tax incentives in this country that are tailored to digital business models of companies."