Name in original language
Credito d'Imposta in Ricerca, Sviluppo, Innovazione e Design 4.0
Initiative overview
Italy’s R&D and Innovation Tax Credit—established under Transition Plan 4.0 through Budget Law 2020 (Law 160/2019)—provides targeted tax incentives supporting business investments in research, technological development, design, and digital transformation. The scheme grants a 10% volume‑based tax credit for eligible R&D activities, as confirmed by the OECD INNOTAX Portal, which recognises this rate as part of Italy’s current national R&D incentive framework. Alongside R&D support, Italy also offers a 5% tax credit for technological innovation, design, and creative activities for fiscal years 2024–2025, as documented by professional tax analysts examining the 2025 incentive measures. These credits apply broadly to all companies operating in Italy, including permanent establishments of non‑resident entities, without restrictions related to company size, sector, or legal form. Together, these incentives form a core component of Italy’s industrial modernization agenda, encouraging companies to integrate advanced digital technologies—such as artificial intelligence, automation, and cloud computing—into their production and innovation processes as part of their transition to Industry 4.0 and beyond.
