The Transition 5.0 initiative represents a significant evolution in the landscape of Italian incentives for digital and energy transformation in businesses.
Promoted by the Mimit (Ministry of Enterprises and Made in Italy), this incentive aims to support the investments of national companies seeking to improve energy efficiency and adopt innovative technologies.
The details were outlined in two decrees issued on July 24 and August 6, 2024, followed by an operational circular on August 16, 2024, providing further clarifications and practical instructions for accessing the benefit.
Eligible companies and conditions for accessing Transition 5.0
The Transition 5.0 incentive is available to Italian companies, regardless of their legal form or economic sector, that make investments between January 1, 2024, and December 31, 2025.
To qualify for the benefit, companies must:
- Demonstrate a reduction in the energy consumption of the production facility by at least 3%;
- Alternatively, demonstrate a reduction in energy consumption of the production processes involved in the investment by at least 5%;
- Be resident in Italy or have a permanent establishment in Italy;
- Be compliant with workplace safety regulations and up-to-date on social security contributions.
Companies in crisis, bankruptcy, or subject to insolvency proceedings are excluded from the benefit.
Production facilities and processes involved in Transition 5.0
One of the critical aspects of Transition 5.0 is the definition of “production facility” and “production process.”
According to the operational circular from Mimit, the production facility refers to the manufacturing site, which can consist of one or more plants on contiguous parcels, with technical and organizational autonomy.
Regarding the production process, it must be a well-defined system of inputs and outputs, and the investment must only target the parts of the process capable of operating autonomously to transform inputs into outputs, ensuring a real reduction in energy consumption.
Conclusion
Transition 5.0 offers a significant opportunity for Italian businesses looking to enhance their energy efficiency and embrace digital transformation.
However, accessing these benefits requires meeting specific technical and bureaucratic requirements. Investments must be carefully planned, and companies need to ensure that the reduction in consumption complies with established parameters in order to fully capitalize on the opportunities offered by this innovative incentive.
