Granzotto Systems and Tax Incentives for Investments in Industry 4.0 Assets
Italian companies, particularly those in the manufacturing sector, are now well-acquainted with the concepts of “Industry 4.0” and the “Fourth Industrial Revolution.” They have been incentivized to embrace these concepts, not least because of a series of primarily tax-related benefits introduced since 2016 to support the transition to the Industry 4.0 model.
In general, the term Industry 4.0 refers to a set of industrial and production practices that enable a high degree of automation and leverage specific enabling technologies. The benefits of the Industry 4.0 model are primarily tied to increased productivity, improved production quality, reduced human intervention throughout all process stages, and the ability to receive remote assistance in case of anomalies.
A factory that implements the practices and technologies envisioned by the Industry 4.0 model is referred to as a “smart factory.” A smart factory is characterized by the presence of intelligent production factors (operators and machines) that interact and collaborate by exploiting the potential of interconnection with a centralized management and control system.
This paradigm introduces new forms of interaction, including information exchange between various machines involved in the production process (Machine-to-Machine, M2M) through modern telecommunications systems such as the Internet of Things (IoT).
Benefits of Industry 4.0 Production
Investing in new processes and technologies to align production with the principles of the Industry 4.0 model is particularly advantageous for businesses. On one hand, there are the intrinsic benefits of Industry 4.0 production, such as increased productivity, greater operational flexibility, reduced energy and resource consumption, enhanced product quality, and minimized human intervention. On the other hand, companies can access dedicated financial incentives to facilitate these investments.
Specifically, this refers to the tax credit for investments in capital goods aimed at technological and digital transformation according to the Industry 4.0 model. This mechanism allows companies investing in new capital goods that meet Industry 4.0 requirements to benefit from a tax credit, which can be exclusively applied for compensation over five annual installments of equal amounts. The credit becomes available starting in the year following the interconnection of the assets to the company’s system.
The amount of the tax credit depends largely on the period in which the asset is acquired and the scale of the investments made by the company during the fiscal year. For example, for investments below €2.5 million made in 2021, the tax credit was set at 50% of the costs incurred by the company.
The tool developed by the Ministry of Economic Development aims to promote and accelerate the Fourth Industrial Revolution by encouraging companies to purchase new machinery, equipment, and software essential for the technological and digital transformation of production processes. While the tool facilitates the acquisition of a wide range of assets, both tangible and intangible, the category likely of greatest interest to manufacturing companies is machinery intended for production, defined as “capital goods whose operation is controlled by computerized systems or managed through appropriate sensors and actuators.”
This category includes various types of machinery (a complete list can be found in Annex A of Law No. 232, dated December 11, 2016), which must meet the following requirements to qualify for incentives:
- Control via CNC (Computer Numerical Control) and/or PLC (Programmable Logic Controller).
- Interconnection with factory IT systems with the ability to remotely load instructions and/or part programs.
- Automated integration with the factory’s logistics system or with the supply network and/or other machines in the production cycle.
- Simple and intuitive human-machine interfaces.
- Compliance with the latest parameters for safety, health, and workplace hygiene.
Furthermore, to qualify for incentives, the machines in question must possess at least two of the following characteristics:
- Remote maintenance, diagnostics, and/or remote control systems.
- Continuous monitoring of operating conditions and process parameters through appropriate sets of sensors, with adaptability to process deviations.
- Integration features between the physical machine and/or plant with modeling and/or simulation of its behavior during the process (cyber-physical systems).
G-CONTROL Automation Systems
The products and systems developed by Granzotto, through the implementation of automation solutions belonging to the G-CONTROL family, can meet the above-mentioned requirements, enabling clients to take advantage of the Industry 4.0 tax credit.
G-CONTROL systems allow remote monitoring and control of all processes related to the management and treatment of liquids in an industrial plant (requirements A and B). Additionally, G-CONTROL systems provide real-time access to key process parameters, such as machine productivity and efficiency, the progress of operations, and the presence of any anomalies or non-conformities. Granzotto also offers the option to connect to the G-CARE technical support center, where a team of professionals ensures the identification of anomalies and the prompt implementation of necessary corrective actions.
Although Granzotto can prepare the assets for investment to make them eligible and compliant with the requirements of the Industry 4.0 model, it is the responsibility of the investing company—potentially with the support of external professionals—to consolidate and certify these requirements. Specifically, the regulations explicitly require the interconnection of machines with the company’s production management system or supply network.
For an asset to be deemed “interconnected” as defined by the regulations, the following conditions must be met:
- Information Exchange: The machine must exchange information with internal systems (e.g., management systems, planning systems, product design and development systems, monitoring and control systems) and/or external systems (e.g., customers, suppliers, partners in collaborative design and development, other production sites) through a connection based on publicly available, internationally recognized documented specifications (e.g., TCP-IP, HTTP, MQTT).
- Unique Identification: The machine must be uniquely identified to ensure the origin of the information, using internationally recognized addressing standards (e.g., IP address).
The interconnection of the asset is a mandatory requirement to benefit from the tax credit and must be certified by the company through an attested appraisal issued by an engineer or industrial expert or a certificate of conformity issued by an accredited certification body. For assets with a unit acquisition cost not exceeding €300,000, this certification can simply be provided through a declaration from the company’s legal representative.
In conclusion, by purchasing a product or system developed by Granzotto in compliance with legal requirements, it is possible to qualify for the tax credit and recover up to 50% of the costs incurred. At the same time, companies can leverage all the benefits of G-CONTROL systems for production monitoring and control, fostering the technological and digital transformation of manufacturing processes in line with the Industry 4.0 model.
