This document builds upon the proposals contained in the “Agenda for the reopening of businesses and the protection of workplaces against Covid-19” presented by the regional Confindustria associations of Piedmont, Lombardy, Emilia-Romagna, and Veneto on 8 April, and puts forward operational proposals from the Small Industry Committees of these same associations in preparation for phase 2.
Proposals for Economic Development and Growth
- Only by accelerating and incentivising investment is it possible to recover lost ground and lay the foundations for stable growth. The mechanisms provided for by the 240% hyper-depreciation should be extended throughout 2020, but applied to all tangible and intangible investments, particularly in the digital sphere, as well as expenses related to associated consultancy activities and the use of “as-a-service” software. Tangible investments may also include the purchase of used plant or machinery, the value of which will be determined by a specific appraisal.
- Research is the foundation of Italian business ingenuity: extend and enhance the tax credit for research, innovation, and design, and provide grants for the development of e-commerce and remote working.
- Incentivise the capitalisation of businesses by extending to all SMEs for 12 months the provisions currently in place for start-ups and innovative SMEs regarding tax credits for capital contributions, which would serve to strengthen the country's entrepreneurial fabric.
- Incentivise aggregation processes such as acquisitions or mergers to ensure that valuable Italian know-how is not lost. Stabilise and extend the mechanism for the release of tax liability through the revaluation of shares at a reduced rate of 6% until the end of 2021. For acquisitions under €10 million, grant a 40% tax credit to the buyer. In the case of mergers, grant a 40% tax credit relative to the increase in equity brought by the acquired company. Business unit disposals must also be fiscally equated (for both buyer and seller) to share transfer transactions.
- Facilitate business access to capital markets, as reliance on medium-term debt is unsustainable. Provide simplified procedures for accessing capital markets such as AIM, where both the company listing and the purchasing parties can accrue a tax credit equal to 50% of the capital contributed in a capital increase.
- The National Innovation Fund could play an important role in the growth and strengthening of SMEs, by facilitating the acquisition or merger of start-ups or innovative SMEs through equity investments of up to 20%, linked to a call option on the stake after 3 or 5 years by the buyer, provided that the business plan includes compatible growth.
- Simplified procedures for reshoring, to bring back to Italy the activities required to produce quality goods or those strategic for operational continuity (e.g., PPE). One of the greatest obstacles is, unfortunately, bureaucracy; it is therefore proposed to incentivise the repatriation of industrial production through simplified and unified authorisation procedures for the location and construction of production sites.
- Support employment contracts in the post-Covid-19 economy: incentives for permanent hiring and the conversion of fixed-term contracts to permanent ones, reduction of the tax wedge, and an increase in corporate welfare thresholds from €258 to €2,580, in addition to the introduction of simplified on-call contracts.
- Provide impetus to exports by creating new vouchers for SMEs, both for participation in foreign events and trade fairs, and for the organisation of national events and trade fairs aimed at export, in both physical and digital formats.
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