Italy's tax credit initiative, introduced in spring 2024, is starting to show its impact. Under the "Plan Transition 5.0," businesses making investments in digital and energy transformations during 2024-2025 are eligible for tax incentives.
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The program aims to reduce energy consumption and foster sustainable innovation, benefiting all companies based in Italy, including foreign enterprises with operations in the country. Eligible investments include new tangible and intangible assets essential to business activities.
Table: Moebel Fertigung.
Acimall, the Italian woodworking machinery and tools association, reports that while the tax incentive faced delays and challenges during its implementation, its effects are now visible. The association's latest survey indicates a positive trend in domestic order intake during Q3 2024, offering relief after two years of decline. Domestic orders rose by 16.1%, but export demand remains weak, with a 12.4% drop, resulting in an overall 9.4% decline compared to Q3 2023.
Order backlogs increased to three months, up slightly from 2.9 months in Q2. Meanwhile, prices have risen by 1.6% since January 2024.
Despite these signs of stabilization, sentiment among industry players remains cautious. Acimall's survey reveals that 50% of respondents expect stable production levels, while the other 50% fear further declines. None anticipate growth.
Source: www.moebelfertigung.com