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The 2020 Stability Law , tax relief for agricultural investments.
This year the Stability Law 2020 has seen a new tax relief measure for investments in agricultural machinery.
The new tax credit for 2020 shall provide for a contribution of:
- 40% of the investment and up to 2,5 million euros for agricultural machinery with 4.0 technology.
- 6% of the investment and up to a maximum of 2 million euros for all other agricultural machinery.
With this tax credit the goal is to support and encourage companies that invest in new ordinary machinery and 4.0 technology.
All agricultural enterprises resident in the national territory have access to the tax credit. This includes contractors and agricultural undertakings, including individual undertakings, which are covered by the flat-rate scheme.
All new agricultural machinery, regardless of its technological level, is eligible for the 6% contribution. Only agricultural machinery with 4.0 technology is eligible for the 40% contribution.
To be part of assets 4.0 technologies must possess such equipment:
- Telematics with data transfer function.
- Automatic, hydraulic or with steering wheel electric motor.
The tax credit can be used until the 30th of June 2021, its provided that the purchase of the machinery is made by the 31th of December 2020 and a deposit of at least 20% of the investment cost must be paid.
In order to access this Credit, in the case of an investment of less than € 300,000 the company is required to produce a self-certification while in the case of an investment of more than this amount will be required a technical sworn expertise that attests that the property possesses technical characteristics such as to include it among the assets 4.0.
It is possible to take advantage of the Credit in 5 years, in shares of equal amount, starting from the year that follows the year of entry into operation of the machine.
Therefore, if in 2020 you buy and operate a 4.0 machine from 100,000 € you can recover a total of 40,000 € in shares from 8,000 € per year from 2021.
In the case of the sale of such machinery, by the 31th of December of the second following year, the tax credit shall be correspondingly reduced by excluding the cost of the machinery from the original calculation basis.
