Industry 4.0 Super-amortization: who is it for and what are its objectives

A happy new year can also be seen from this news! The terms of the Super-amortization for industry 4.0 have been extended to 2020. But what are the requirements for the purchase of forklift trucks, how and with what advantages? Here is a short guide to help find out.

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An incentive for the virtuous of the industry

In 2016, the first National Plan for Industry 4.0 was launched, which entered into force for the first time in 2017 and then extended, initially, for 2018, then until 2019 to facilitate companies driven by virtuous purpose to improve their structural environment.

What is the purpose of the incentive?

The objective that supports this National Plan is to promote investments in capital goods, in software and other intangible assets. Why? To support companies and encourage them in the digital transformation process, with the aim of ferrying them towards an industry 4.0.

It was started as an incentive for companies in the field of industry 4.0 therefore with a highly innovative connotation.

Hyper-amortization and Super-amortization. Two sides of the same coin: the industry

There are two types of amortization: Hyper-amortization and Super-amortization, both aimed at industries but with different requirements.

Let’s understand this better together:

The Hyper-amortization refers to companies operating in the industry 4.0 sector and therefore with a highly innovative disposition. It favours investments for the purchase or rental of new materials or essential technologies to transform the company into industry 4.0.

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While the Super-amortization is designated for the purchase or rental of capital goods useful for business activities, but in this case, without specifying the type.

The Super-amortization 2019

Industrial forklift trucks for loading, unloading and handling of goods are among the industrial capital goods that benefit from the Super-amortization.

For the purchase of forklifts, a 30% increase is applied when applying the Super-amortization in order to take advantage of the tax deduction. Why? The increase in the acquisition cost to be applied is 30% as it is possible to benefit from the Super-amortization of 130% within a maximum limit and not exceeding 2.5 million euros.

In addition, the rate has been cancelled for all vehicles and other means of transport.

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In 5 years, therefore, it will be possible to recover 130% of the investment, in the form of deductions divided into variable amortization rates.

The Super-amortization is applied only in the case of goods necessary for the activities of the company, such as forklift trucks, which cannot be replaced. Furthermore, it must only be new vehicles.

The news for 2020 on the time frame

Good news for 2020!

As we wrote, as of 1st January 2019, it was already possible to take advantage of the Super-amortization for the purchase of new vehicles until 31st December 2019. The latest news is that for capital goods delivered and installed up until 31st December 2020 it is also possible to apply it, provided that a deposit of more than 20% has been paid and the order has been confirmed by 31st December 2019.

We have provided only a few general guidelines on this matter to understand the details better. We will return to this topic for a closer examination.