Hyper-depreciation – implementing provisions finally approved on 4 May 2026

Hyper-depreciation – implementing provisions finally approved on 4 May 2026

As already reported, the latest Budget Act (Art. 1, paras. 427-436 of Law 199/2025) reintroduced so-called hyper-depreciation in order to promote investment, whereby the basis of assessment for depreciation is notionally increased for tax purposes. Eligible are investments made between 1 January 2026 and 30 September 2028, namely:

• in new tangible and intangible assets which meet the relevant requirements for „Industry 4.0“ (Annexes IV and V) and are interconnected with the company’s production management system or with the supply chain, and
• in new tangible assets for the own production of energy from renewable sources for own consumption (including at physically separate sites), including energy storage systems; in the case of photovoltaics the incentive is limited to installations using certain module types defined by law.

Under the final version of the implementing regulation, cloud models and software obtained as a service (Software-as-a-Service) are not eligible. In principle, therefore, only capitalisable intangible assets remain eligible.

Originally, assets originating from outside the EU were excluded; this requirement has recently been deleted, but for months it prevented the publication of the necessary implementing provisions. A few days ago, on 4 May 2026 to be precise, the competent ministries finally signed the required decree, which we enclose with this newsletter even though it has not been published in the Official Gazette to date. Further operational specifications are also still awaited, in particular regarding the GSE platform and the notification forms. Companies should therefore document planned investments carefully and, before final implementation, have it verified whether all technical, time-related and formal requirements are met. The specialist press assumes that it will take until mid-June before the necessary notifications can actually be submitted.

A critical question must be allowed at this point: does such an incentive perhaps do more harm than good if uncertainty across the entire country blocks investment activity for more than six months?

Here, in advance, are the most important details of the incentive:

In principle, hyper-depreciation is available only to businesses and not to self-employed professionals. A further condition for claiming it is compliance with occupational health and safety rules and the proper fulfilment of social security and contribution obligations. The new rules provide for the following increased notional depreciation (for tax purposes only):

The increased basis of assessment applies exclusively for tax purposes, to depreciation and lease instalments.

In order to claim the incentive, the following notifications via the GSE platform are mandatory:

1. Advance notification stating the planned investment;
2. Confirmation notification within 60 days of a positive response from the GSE, providing evidence of a down payment of at least 20%;
3. Completion notification by 15 November 2028 at the latest, confirming that the assets have been interconnected;
4. In addition, two further monitoring notifications are expected to be required each year: a notification by 20 January on the anticipated use of the incentive for tax purposes and a supplementary notification by 30 June on the actual use.

The details of all these notifications still have to be laid down in further implementing provisions.

Extensive supporting documentation is required in order to claim the incentive, in particular:

• a sworn technical appraisal („perizia asseverata“) by an engineer or expert,
• confirmation of the interconnection (networking) of the installations,
• accounting certification by a statutory auditor,
• invoices and proof of payment,
• contractual and acceptance documentation.

Complete and seamless documentation is essential in order to avoid subsequent objections.

In particular, please note that under the new rules no minimum threshold (previously EUR 300,000) is provided for the technical appraisal and that, accordingly, a self-declaration is no longer permitted.

The tax benefit may be revoked if the qualifying asset is sold, if the installation is relocated abroad, if technical requirements are not met or if the documentation is incomplete or incorrect.

In principle, hyper-depreciation may be combined with other national or European incentives, provided that the same costs are not financed twice and that the total funding does not exceed the costs actually incurred. But caution: unlike in the past, the basis for calculating the notional depreciation must now be reduced by any grants already received!

As soon as the GSE portal opens and the necessary notification forms are available, we will inform you in more detail.

Unlike other incentives, evidence of insurance against natural catastrophes is evidently not required for this hyper-depreciation.

It has also been confirmed that hyper-depreciation continues to be available for investments already booked in 2025 if they are realised in 2026; the tax allocation rules under Art. 109 of the Italian Income Tax Code (TUIR) remain decisive in this respect.

Finally, it should be pointed out that, contrary to expectations, these implementing provisions contain no express transitional rules for investments made in the period from 01.01.26 until the opening of the portals for advance notifications. Nevertheless – also in line with the wording of the law and of the implementing provisions – we assume that investments made during this transitional period will likewise qualify for the additional depreciation.

Enclosure: as above