From 12 June 2024, companies in the South that acquire capital goods can request a contribution in the form of a “single ZES tax credit”, following the instructions of the Revenue Agency. This incentive, established by the Southern Decree and financed by the 2024 Budget Law for the three-year period 2024-2026, applies to purchases intended for production facilities in the Southern Regions of Italy: Campania, Puglia, Basilicata, Calabria, Sicily, Sardinia, Molise
and Abruzzo.
On July 22, 2024, the Revenue Agency established that the percentage of the tax credit actually usable by each beneficiary is 17.6668% for 2024.
Table of Contents:
What is the ZES Unica Sud Tax Credit
The ZES tax credit is a tax incentive for companies that purchase capital goods for production facilities located in the regions of the South. This incentive was established by the Southern Decree and subsequently amended by the 2024 Budget Law, with an annual ceiling of 1,800 million euros
.
How the ZES 2024 Tax Credit Works
The tax credit for the South works like a tax credit, allowing the beneficiary to offset the credit with tax debts. The Ministerial Decree of 17 May 2024 clarifies the functioning of credit, which is subject to approval by the European Commission. It is possible to use the credit in compensation with the tax code ‘7034’ established by resolution no. 39/E of 22 July 2024. The credit is calculated based on the total cost of eligible assets acquired or realized between January 1, 2024 and November 15, 2024
.
Requirements to Access the Tax Credit
Companies in all sectors, excluding steel, coal, transport, energy, broadband, credit, financial and insurance sectors, can access the SEZ tax credit. Companies must have their headquarters in the southern regions and must not be in a state of liquidation or difficulty
.
Eligible Expenses
Investments in machinery, plants and various equipment intended for existing or new production structures, the purchase of land and the acquisition, construction or expansion of capital buildings are eligible for financing. The value of land and buildings cannot exceed 50% of the total value of the subsidized investment. Projects with a total cost of less than 200,000 euros, or 50,000 euros in the agricultural sector, are not eligible
.
How to Apply for a Tax Credit
Interested companies must communicate to the Revenue Agency, from 12 June to 12 July 2024, the amount of eligible expenses incurred and expected up to 15 November 2024. The communication must be sent exclusively electronically through the “ZES UNICA” software available on the website of the Revenue Agency. Within 10 days from the expiry of the communications, the Revenue Agency determines the percentage of subsidy actually due
.
Percentage of the ZES 2024 Tax Credit
For 2024, the percentage of the tax credit actually usable is 17.6668% of the requested bonus. This percentage is calculated based on the ratio between the available spending limit (1,670 million euros) and the total amount of requests submitted (9,452,741,120
euros).
Revocation Cases
The benefit is revoked if the beneficiary company does not maintain its activity in the subsidized areas for at least 5 years after the completion of the investment. In case of misuse of the credit, the benefit is revoked and the amount
must be returned.
Advantages of the ZES Zone
The Special Economic Zone (ZES) offers advantageous conditions for companies that start investments and develop business activities in the regions of the South. In addition to tax breaks, the SEZ provides for administrative simplifications
to facilitate investments.
