FOR EMPLOYERS

The Invest In Bari-One Stop shop platform, through a check-up of investment needs, accompanies all interested investors through the process of identifying the most appropriate incentives. Once the incentives have been identified, the company will be guided through all bureaucratic aspects from the presentation of the investment project until the grant is obtained and beyond.

A) At a national level, incentives are provided for citizens who wish to start a business or want to grow and develop an existing one. National incentives can be:

• Non-repayable grants or capital grants;
• Loans at a subsidised rate, with partial or total reduction of the interest rate on mortgages;
• Guarantees on credits and debts.

The national bodies who regulate these incentives are:

• INVITALIA – Invitalia directly manages some of the measures
• SACE – Sace supports export and internationalisation operations
• CDP – In addition to funding the State, regional and local administrations, CdP invests in the capital of Italian companies abroad, taking part in strategic projects for the infrastructural and economic development of the nation.

B) At Regional Level, The Apulia Region has devised a range of 12 flexible incentive schemes for business investments managed by Puglia Sviluppo SpA, designed to facilitate and reduce the costs of investing in Apulia and to support business growth and innovation.

Regional incentives are tailored to meet the needs of new business start ups, as well as established SMEs or MNEs, and, depending on the nature and size of proposed investments, typically offer a combination of financial aid and reduced interest rate loans, helping to ease the cost of new business investments, and making funding available for:

• investing in plant construction and machinery;
• R&I;
• Business consultancy services and international business promotion.

TAB. 1- REGIONAL CONTRACT PROGRAMMES

Beneficiaries: Multinationals, large Enterprises, including NewCos, individually or in partnership with local active SMEs.
Investment budget: 5 – 100 million Euros

Eligible investment: costs and levels of funding available

Investments in eligible “tangible assets” (purchase of land, buildings, construction works, machinery, etc.)

• 15% / 25% for large enterprises;
• 20% / 35% for medium-sized enterprises;
• 25% / 45% for small enterprises

Investments in eligible “intangible assets” (licences, patents, etc.):

• 25% for large enterprises
• 35% for medium-sized enterprises;
• 45% for small enterprises

Investments in eligible industrial or experimental R&D:

• 25% / 65% for large enterprises
• 35% / 75% for medium-sized enterprises;
• 45% / 80% for small enterprises

Investments in eligible business consultancy services and participation in international trade fairs (exclusively for SMEs):

• 45% / 50%

TAB. 2- NATIONAL PROGRAMMES

Smart & Start Italy

Finances business plans with costs of between € 100,000 and € 1,500,000.

A zero per cent interest loan is provided without the need for any guarantee that covers 80% of the eligible costs.

The funding reaches 90% if the startup has a team of people under 36 and / or women, or if one of them is a PhD (or equivalent) who returns from abroad.

Startups based in the seismic crater of Central Italy and in the regions of Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia and Sicily can apply for a grant equal to 30% of the loan and thus only return 70% of the funding received.

Development Agreement

The Development Contract supports large-scale investments in the industrial, agricultural-industrial, tourism and environmental protection sectors.

The minimum investment required is 20 million euros, which is reduced to 7.5 million euros for projects involving the transformation of agricultural products and tourism projects implemented in the internal areas of the country, that deal with the recovery of disused structures.

Furthermore, there are measures that can be used individually or even in combination with the incentives listed above.

The tax credit.

The tax credit, with different rates for the different periods in which it is applied, is used by companies that make investments between 16th November 2020 and 31st December 2025, or till 30th June 2026, provided that by 31st December 2025 the order is accepted by the seller and the advance payment has been made in an amount equal to at least 20% of the acquisition cost.

The rates are as follows:

•  6% on generic goods;
• 40% on industry 4.0 goods;
• Training 4.0 on personnel costs.

The tax credit can be combined with other measures that have the same costs, provided that such accumulation, taking into account the non-competition in the generating of income and the taxable base of the regional tax on productive activities, does not lead to a greater amount than the costs incurred.

Training 4.0 tax credit

The measure is aimed at supporting companies in the process of technological and digital transformation by creating or consolidating the skills in technologies necessary to achieve the 4.0 paradigm.

The Training 4.0 Tax Credit is the measure aimed at supporting staff training for the acquisition or consolidation of skills in technologies necessary to the technological and digital transformation of businesses.

The subsidy measure is aimed at all companies, regardless of their legal form, economic sector and accounting regime. Even companies that have not benefited from the incentives for investments in capital goods 4.0 have access.

With the exception of companies in difficulty, the 2020 Budget Law states that the effective use of the tax credit is conditional on the company not being the recipient of disqualifying sanctions and is in compliance with workplace safety regulations and has no outstanding social security payments or welfare contributions in favor of its workers. The breakdown of the tax credit is the following:

• 70% of eligible expenses with a maximum annual limit of 300 thousand euros for small businesses, provided that the training activities are provided by the subjects identified by decree of the Minister of Economic Development to be issued shortly and that the results relating to the acquisition or consolidation of the aforementioned skills are certified according to the procedures established by the same ministerial decree;
• 50% of eligible expenses with a maximum annual limit of 250 thousand euros for medium-sized enterprises, provided that the training activities are provided by the subjects identified by decree of the Minister of Economic Development to be issued shortly and that the results relating to the acquisition or consolidation of the aforementioned skills are certified according to the procedures established by the same ministerial decree;
• 30% of eligible expenses for large companies with a maximum annual limit of 250 thousand euros.

The amount of the tax credit is increased for all companies, given they stay within the maximum annual limits, to 60% in the event that the recipients of the admissible training fall into the categories of disadvantaged or very disadvantaged employees, as defined by the decree of the Minister labor and social policies of 17th October 2017.

FOR EMPLOYEES

The Italian Ministry of Economic Development offers a range of employment bonuses available to companies hiring staff which vary depending on the age and category of workers, as well as the location of the company (bonuses are larger for companies locating in the regions of Southern Italy). The bonuses involve a reduction in social security contributions to be paid by the employer. There are also a range of tax credits to companies investing in staff training: for large companies, the tax credit ranges from a minimum of 30% to a maximum of 60% of eligible costs, depending on the category of workers.

Apulia Regional Government also offers incentives to companies investing in staff training for the development of new skills, skills conversion and professional advancement: for large companies, regional incentives can cover up to 50% of eligible costs, for training programmes related to updating professional skills and retraining workers, following new industrial investments.

Youth Employment Bonus

It provides for a reduction in social security contributions for employers who hire employees under 36, i.e. up to 35 years of age, equal to 100% for two years

Women Hiring Bonus

The facility consists in the reduction of contributions equal to 50% for employers who hire, for an indefinite or fixed term, workers without regular paid employment for at least 24 months, or for 6 months if they reside in disadvantaged areas. The 2021 Budget Law increased the bonus for hiring women, bringing the deduction to 100% for hires This also applies to the hiring of women who work in a profession or in an economic sector characterized by a marked gender employment gap. With INTERMINISTERIAL DECREE sectors and professions are identified.

South Decontribution

The tax relief for the South. The benefit consists of a discount on pension contributions equal to 30%, granted to southern companies. The measure should then be renewed until 2029, with a gradual reduction of the tax deduction to 20% and 20%.

Incentive for under 30 Students

It consists of the total exemption from the payment of contributions by the employer, up to a maximum of 3,000 euros per year, for a maximum period of 36 months. It is for the full or partial permanent recruitment of young students who have not reached the age of 30 and who, within 6 months from the acquisition of the qualification, have carried out work with the same employer alternation between school and work or periods of apprenticeship.

Incentive for Recruitment in the South

It provides for the total relief (100%) of contributions, for a period of 48 months, for employers who hire unemployed people in some areas of Southern Italy. It can be used, specifically, for permanent hires in Abruzzo, Molise, Campania, Basilicata, Sicily, Puglia, Calabria and Sardinia.

Bonus for Young Parents

It is up to private employers who hire young parents under the age of 35 with a fixed-term contract and with minor children, even in foster care. It is granted on a one-off basis and has an amount of € 5,000 for each contract hiring or transformation, up to a maximum of 5 hires per employer (€ 25,000).

Benefit for Over 50

Companies that hire workers over the age of 50 are entitled to a 50% deduction.

Incentive for the Replacement of Leave Workers

Employers who hire people to replace workers and workers on maternity, paternity, parental and sick leave of the child, up to the age of one year of the minor or for one year from the reception of the minor, can take advantage of a contribution relief of 50% for a maximum of 12 months.

Bonus for the Disabled

Companies that hire people with disabilities with a permanent contract, or transform their permanent employment relationship into an open-ended contract, even with part-time hours, can benefit from the following incentives, based on the degree of disability of the hired worker:

• 70% of the gross monthly salary taxable for social security purposes, in the case of workers who have a reduction in working capacity exceeding 79% or suffering from intellectual and mental disabilities which entail a reduction in working capacity exceeding 45%;
• 35% of the gross monthly salary taxable for social security purposes, for hiring people with a reduction in work capacity of between 67% and 79%.

Employment Bonus

The re-employment bonus is due to employers who hire beneficiaries of the relocation allowance. It consists of a 50% discount on social security contributions, for a period of 12 to 18 months, up to € 4,030 per year.