WHY BECOME 5.0?

Challenges and benefits for SME

INDUSTRY 5.0 - WHY BECOME 5.0? CHALLENGES AND BENEFITS FOR SME

The European Commission has emphasized the importance of introducing a more sustainable way of doing industry, and that eventually all manufacturing companies will not only be able to prove that they are more competitive by digitizing the production process with the 4.0 incentives, but they will also have to prove that they have embarked on a more sustainable and resilient path for their business.

WHAT CHANGES FOR RATES?

Regarding the incentives for capital goods 4.0 currently provided until 2025, the breakdown is as follows:

  • 20% for investments up to 2.5 million euros
  • 10% for investments from 2.5 million euros up to 10 million euros
  • 5% for investments from 10 million euros up to 20 million euros

In addition to the inclusion of 4.0 enabling technologies in the plant, if a manufacturing company certifies that it has had 3% energy savings at the company level or 5% for the production process. In fact, the new bill includes the possibility of being able to add together the rates under the Industry 4.0 Plan and those of Industry 5.0, allowing SMEs to recover an additional 20% and thus obtain up to 40% of the tax benefit.


WHAT IS THE TIMELINE FOR THE 5.0 PLAN?

The certain date of activation of the decree has been set from January 2024, thus giving SMEs that have made investments from 01/01/2024 onward the opportunity to be eligible for the announcement.

This plan will run for two years from 2024 to 2025 (from 01/01/2024 and 31/12/2025), and until 30/06/2025 it will be possible to report expenses and deliver the various certifications.


WHAT ARE THE WAYS IN WHICH SMES CAN ACCESS?

There are two basic steps for availing the 5.0 tax benefits, namely

  1. The reservation of the economic incentive with the submission of the "ex-ante" certification, to be eligible, the investment must be appraised by a qualified certifier, who must verify and certify the existence of the requirements of this investment in a more sustainable perspective
  2. The subsequent enjoyment in a single tranche of the benefit after the "ex-post" certification has been submitted, the investment must have this appraisal attesting to the actual implementation of the investments in accordance with the objectives and provisions of the "ex-ante" certification.

It is worth noting that the timing and mode of benefit are completely independent of the Plan 4.0 process.


WHAT ARE THE NEW CHALLENGES ON THE HORIZON FOR COMPANIES BEGINNING THE TRANSITION PROCESS AND HOW CAN THEY ADDRESS THEM?

As was the case during Industry 4.0, companies need to prepare for the ongoing change in order to successfully overcome the initial barriers to entry of Transition 5.0 with

  • The introduction of the innovative and expensive technologies, which must be seen as an investment in the future of the planet and the human being himself.
  • The development of new worker skills to be cultivated to later enable the increased collaboration between humans and intelligent machines
  • The improvement of cybersecurity due to the connection of multiple IoT devices

WHAT ARE THE BENEFITS IT CAN BRING TO MANUFACTURING INDUSTRIES?

As was the case with the incorporation of Industry 4.0 technologies into production processes, with the advent of Transition 5.0, SMEs will be able to add these benefits to the benefits gained from 4.0:

  • Improved interpersonal relationships in the workplace through greater consideration of staff and their potential
  • Streamlining in the development and retraining of the skills of the business team with the new technologies, so that everyone participates in the technological change that the SME is facing
  • Zeroing the environmental impact of its plant through the sustainable development of circular production processes
  • Resource and product lifecycle efficiencies resulting in reduced production waste
  • Increased robustness and adaptability to cope with sudden changes through the use of modular production lines, remotely managed smart factories, the use of new sustainable materials, and instant plant monitoring technologies.

 

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