Regulatory update as of 7 January 2026

The 2026 Budget Law has redefined the framework of tax incentives for investments in new capital goods, including machinery for wood processing and cutting.

Below is the updated and official status of the incentives applicable to investments made as of 1 January 2026, based on the provisions currently in force.

New Hyper Depreciation 5.0 (2026 Budget Law)

The 2026 Budget Law has introduced a new hyper depreciation regime, commonly referred to as “Hyper Depreciation 5.0”, aimed at supporting corporate investments in machinery and advanced digital and interconnected technologies.

The incentive consists of a tax increase in the depreciable cost of the asset for the purpose of calculating depreciation allowances (or leasing instalments), resulting in a reduction of the company’s taxable income in subsequent fiscal years.

Application period

The hyper depreciation regime applies to investments made:

  • from 1 January 2026

  • until 30 September 2028

Applicable enhancement percentages

The tax uplift applied to the asset’s cost varies depending on the total amount of the investment:

  • 180% for investments up to EUR 2.5 million

  • 100% for investments exceeding EUR 2.5 million and up to EUR 10 million

  • 50% for investments exceeding EUR 10 million and up to EUR 20 million

These percentages apply exclusively for tax purposes and do not constitute a tax credit or a direct financial contribution.

Eligible assets

The new hyper depreciation regime applies to new capital goods intended for production facilities located in Italy and falling within the scope of digital and interconnected technologies as defined by the applicable legislation.

The 2026 Budget Law also provides that eligible assets must be:

  • manufactured in a Member State of the European Union, or

  • manufactured in a State belonging to the European Economic Area (EEA)

The detailed list of eligible assets and the final technical requirements will be specified by the implementing decree of the Ministry of Enterprises and Made in Italy (MIMIT).

Implementation status of the measure

As of 7 January 2026:

  • the Hyper Depreciation 5.0 regime is provided for by the 2026 Budget Law;

  • the implementing decree of the Ministry of Enterprises and Made in Italy (MIMIT), required to fully define the operational procedures of the measure, is currently completing the institutional approval process;

  • the incentive will become effectively applicable following the publication of the implementing decree in the Official Gazette.

What has changed compared to the past

For investments made as of 1 January 2026, the main regulatory reference is no longer the “Transition 4.0” or “Transition 5.0” tax credit schemes, but the new hyper depreciation regime introduced by the 2026 Budget Law.

Previous incentives in the form of tax credits remain applicable only to investments carried out by 31 December 2025, in accordance with the conditions and timelines set out under the legislation then in force.