The budget law has introduced a number of tax incentives
Law No. 178 published in Italian Official Gazette on December 30 2020 (the so-called budget law 2021), introduced important measures in the field of tax incentives for enterprises.
Among the several changes introduced, key highlights are outlined below.
4.0 research and development tax credit
The tax credit for investments in research and development, ecological transition, 4.0 technological innovation and other innovative activities pursuant to the Italian Law No. 160/2019 is extended until December 31 2022.
The tax credit for research and development is increased from 12% to 20%, and the expenses limit is increased from €3 million (approximately $3.6 million) to €4 million. The tax credit for technological innovation design or aesthetic development is increased from 6% to 10%, and the expenditure limit is increased from €1.5 million to €2 million. Same thresholds are applicable for technological innovation activi