The new measure is granted to startups established on or after January 1, 2020, operating in the environmental, renewable energy, or healthcare sectors.
Italy is guaranteeing the possibility of obtaining a tax credit for innovative startups, operating in the selected sectors, for the year 2023.
The tax credit is granted to those expenses incurred in research activities directed at:
promoting environmental sustainability
reducing energy consumption
What’s new in the facilitation framework:
The Article. 7-quarter of DL 30.03.2023 n. 34, introduced upon conversion into Law No. 56 of 26.5.2023, a number of new features concerning the following points:
Beneficiary Subject
The tax credit is for all innovative startups that meet the following prerequisites:
- Have been consolidated after the year 2020
- Operate in the environmental, renewable energy, or healthcare sectors
Scope and Extent of the Exemption
The relief measure is related to expenses in research and development activities directed at innovative solutions for the creation of instruments and technological services, that can guarantee environmental sustainability and reduce energy consumption.
Specifically, there is a tax credit up to a maximum amount of 200.000,00 euros, not exceeding 20% of the eligible expenses. The overall limit of 2 million euros for the year 2023 should be kept in mind.
Additionally, it is important to note that:
- For offsetting purposes, the tax credit should be done through the model F24
- The tax credit must be reported on the tax return
- The tax credit must not contribute to the creation of business income or IRAP tax base and does not apply to the deductibility ratio of interest expense and overhead expenses
The concept of Innovative Startups
Pursuant to Article 25 of Decree-Law No. 179/2012, an innovative start-up company is a corporation, whether incorporated or not in the form of a cooperative, whose social capital shares are not listed on a regulated market or a multilateral trading system and, meets the following requirements:
- It has been constituted no more than 60 months ago
- It is a legal resident in Italy or in a member state of the EU or in states party to the Agreement on the European Economic Area, provided that it has a production site or branch in Italy
- Starting from the second year of activity, the total value of the annual production, as shown in the last approved financial statement and within six months of the end of the fiscal year, does not exceed five million euros
- Does not distribute and has not distributed utilities
- Has as its exclusive or main corporate purpose the development, production, and marketing of innovative products or services with high technological value
- Is not the result of a corporate merger, corporate de-merger, or the sale of a company or business unit
- Makes research and development expenditures equal to or greater than 15% of the cost and the total value of the startup’s output
- At least one-third of the workforce in the company (employees or collaborators) possess a Ph.D. degree or are pursuing a Ph.D. degree at an Italian or foreign university, or hold a bachelor’s degree and have been engaging for at least three years in certified research activities at public or private research institutions, in Italy or abroad
- It is the owner, depositary, or licensee of at least one industrial patent relating to an industrial, biotechnological, semiconductor product topography or new plant variety invention, or is the owner of rights to an original computer program registered with the Special Public Register for Computer Programs, provided that such design rights are directly related to the corporate purpose and business activity.
