Italy industrial sector eyes growth through tax incentives and infrastructure

Italian businesses are increasingly utilizing hyper-depreciation tax incentives to fund investments in machinery, technology, and renewable energy. Since the GSE opened the application platform on June 12, approximately 3,100 applications have been submitted. The incentive provides varying levels of tax relief based on investment size: roughly 43.2 percent for investments up to 2.5 million euros, 24 percent for amounts between 2.5 and 10 million euros, and 12 percent for investments between 10 and 20 million euros.

Simultaneously, the industrial plant sector in Italy is showing signs of resilience and expansion. According to the SAIE-Nomisma Observatory, construction investments are projected to exceed 250 billion euros in 2026, driven largely by infrastructure projects which are expected to account for 57 percent of total sector investments. The plant sector, comprising nearly 45,000 companies and 770,000 employees, maintains a positive outlook with many firms anticipating turnover growth despite economic uncertainties and cost pressures.