The ZES 2024 Tax Credit is a tax incentive for companies that invest in production facilities located in the Special Economic Zones (SEZ) of the southern regions of Italy. This incentive has been confirmed by the 2024 Budget Law and is part of the framework of tax breaks to support the economic development of
Southern Italy.
In this guide, we will see how the ZES tax credit works, what are the eligible expenses, the percentage of concession for 2024 and how companies can request it.
Table of Contents:
What is the ZES Unica Sud Tax Credit
The ZES Unica Sud Tax Credit is a tax advantage in the form of a credit that can be used as compensation, intended for companies that make investments in new capital goods, intended for production facilities located in some regions of Southern Italy. The regions concerned are: Abruzzo, Campania, Puglia, Basilicata, Calabria, Sicily, Sardinia
and Molise.
The incentive was introduced with the Southern Decree and refinanced in the 2024 Budget Law, with an annual ceiling of 1,800 million euros. The Omnibus Decree 2024 subsequently increased the available funds by 1.6 billion euros. The allocated resources are distributed among the applicants based on the number of admissible applications
.
Tax Credit Percentage for 2024
For the year 2024, the percentage of the tax credit actually usable by businesses is 17.6668% of the amount requested. This percentage has been established by the Revenue Agency based on the applications received and the resources available. This percentage may be updated following the disbursement of additional funds
.
Eligible Expenses for the ZES 2024 Tax Credit
The
eligible expenses for obtaining the tax credit concern the acquisition of new capital goods intended for production structures in the SEZ regions. Here are the main categories of bankable investments
:
- Machinery, plants and equipment used in production activities.
- Purchase of land and real estate instrumental to investments.
- Expansion and renovation of existing buildings.
The value of land and buildings cannot exceed 50% of the total subsidized investment. The minimum cost to access the bonus is 200,000 euros for most sectors, while for the agricultural sector the minimum limit is 50,000 euros
.
How the ZES Tax Credit Works
The ZES tax credit works like a tax credit that can be used to offset tax debts. Beneficiary businesses can then use this credit to reduce the tax burden resulting from income taxes or other taxes due to the State. The credit can be used within the limits established by European legislation on state aid
.
The tax credit must be calculated on the total cost of eligible assets purchased or manufactured between January 1, 2024 and November 15, 2024.
Requirements to Access the ZES Tax Credit
Companies that meet the following requirements can access the ZES tax credit:
- They must have a production facility located in one of the ZES regions.
- Investments must relate to the purchase of new capital goods.
- The investment must comply with state aid regulations and the provisions of the 2021-2027 Regional Aid Charter.
Companies operating in sectors excluded from the Treaty on the Functioning of the European Union (TFEU), such as the steel, coal, transport and energy infrastructure industries, cannot benefit from the credit.
How to Apply for the ZES 2024 Tax Credit
Interested companies must submit a communication to the Revenue Agency, stating the eligible expenses incurred as of January 1, 2024 and those expected until November 15, 2024. The communication must be made using a special electronic model made available by the Revenue Agency, by the established date
.
Once the application has been accepted, the tax credit can be used in compensation through the F24 model. Investments must be made within the expected deadlines and documented with electronic invoices
.
Deadlines and Supplementary Communications
Companies that have applied for the tax credit must send a supplementary communication between November 18 and December 2, 2024, to certify that the declared investments have been completed by November 15, 2024. Only after this communication will it be possible to use the tax credit for the part of the investments actually made.
Revocation of the Tax Credit
The tax credit can be revoked if the company does not maintain its business in the ZES zone for at least 5 years after the investment is completed, or if the credit is misused.
Advantages of Special Economic Zones (SEZ)
The Special Economic Zones (SEZ) are areas of the Italian territory where companies can benefit from special tax breaks and administrative simplifications. In addition to the tax credit, businesses can access simplified administrative procedures and unique authorizations to accelerate their investment projects
.
