2026 is the year of the Transition 5.0, and the Italian government has just extended the hyper-depreciation until 2028.
If you're an industrial entrepreneur looking to invest in digital machinery, robotics, control systems, and automation, this article will help you understand how to leverage this tax break to reduce your corporate tax burden.
What is Hyper-Depreciation 5.0?
Hyper-depreciation is a tax break that allows you to depreciate a capital asset (machinery, equipment, software) beyond its nominal value.
In practice:
- Standard depreciationIf you buy a €100,000 machine, you depreciate it over years at the standard rate (e.g. 5 years = €20,000/year).
- Hyper-depreciation: with the 5.0 benefit, you amortize it for more than 100% of its value, up to 180% or 220% depending on the criteria.
This means lower taxes on corporate profits and better cash flow.
The percentages: 180% vs 220%
The Government has established two levels of hyper-depreciation, based on the company's project.
Basic hyper-depreciation: 180%
Who: Companies investing in Industry 5.0 machinery, systems, and software
Rate: 50-180% for investments up to €2.5 million (percentage decreases with higher investments)
Example:
• Invest €100,000 in a 5.0 machine
• You can amortize €180,000 instead of €100,000
• In 5 years: €36,000/year tax deductibility instead of €20,000
Enhanced hyper-depreciation: 220%
Who: Companies investing in Industry 5.0 projects with proven energy reduction
Requirements: reduction of energy consumption by at least 3% overall, or reduction of 5% on a single production process
Rate: 90-220% for investments up to €2.5 million
Advantage: if your project reduces consumption, the depreciation increases to 220%, that is, €220,000 instead of €100,000.
Technical requirements: what is “5.0”
Not all machinery receives hyper-depreciation.
They must be “5.0”:
- ✅ Digital and interconnected: equipped with IoT (Internet of Things) systems, connectable to company networks, with software control
- ✅ Highly controllable via software: advanced numerical control system
Advanced software interface, self-diagnosis capability - ✅ Compatible with 5.0 architectures
Interoperable with corporate ERP/MES: digital process traceability, smart manufacturing capabilities - ✅ Energy efficient: power variability, energy recovery systems, real-time consumption monitoring.
Examples of permitted goods:
- Industrial machinery with advanced numerical control
- Collaborative robotics and industrial automation
Intelligent Environmental Control Systems (HVAC) - High energy efficiency blasting benches
- Automated handling systems
The dates: when to take advantage of them
By December 31, 2028
Last date for making purchases/investments, expenses incurred by this date benefit from hyper-depreciation
By June 30, 2029 (Completion Clause)
If you ordered the goods by the end of 2028 with an advance payment of ≥20%
You can complete the project until the end of June 2029
How it works in practice
Step 1Identify the eligible asset. Verify that the machinery/system is truly "5.0": check the supplier's technical specifications, ensure it is equipped with advanced digital control, and verify energy efficiency certifications.
Step 2: Estimate the benefit: with your accountant, calculate: value of the asset: €X, applicable rate: 180% or 220%?, depreciable base: €X × rate, tax saving: Depreciable base × IRPEF/IRES rate.
Concrete example
• Good: €200,000 (5.0 machine with 3% energy reduction)
• Rate: 220%
• Depreciable base: €200,000 × 220% = €440,000
• IRES taxation: 24%
• Tax savings: €440,000 × 24% = €105,600
Step 3: Make the investment: order the goods by December 31, 2028, pay the costs, receive the goods
Step 4: accounting
Your accountant will account for: enhanced depreciation in the first (partial) financial year, then annual depreciation on the overall value.
Who can benefit
- companies resident in Italy
- SMEs and large companies
- Manufacturing, industrial, artisanal activities
- Service activities if related to production
- No self-employed professionals on the flat-rate scheme
- No pure commercial activities (e.g. retail)
Hyper-depreciation works otherwise from the tax credit:
- Tax creditDirect tax discount (€10k invested = €1,500 credit)
- Hyper-depreciationIncreases tax deductible base (€10k invested = €18k-22k deductible = €4,300-5,300 savings)
AdvantageHyper-depreciation is more advantageous if the company has high profits.
Attention: the constraints
Not combinable with other incentives
If you use tax credit for the same asset, you cannot use hyper-depreciation
The good must be “new”
No used, no refurbished
It's not for all systems
Pollution control systems: no hyper-depreciation (they have other incentives)
Photovoltaic systems: different rules
Mandatory documentation
Form 770, Income Tax Form, Technical Documentation
Next steps
If you think your business could benefit from Industry 5.0 investments:
- Talk to your accountant: Check the economic convenience in your case
- Contact suppliers: Ask for specifics on the 5.0 compliance of the products
- Make an investment plan: By the end of 2028 to take advantage of the incentive
- Don't wait: The last 6-12 months could see spikes in orders
THE'’hyper-depreciation until 2028 It's a concrete opportunity for companies looking to invest in technology, automation, and energy efficiency. The percentages (180%-220%) are significant and can generate significant tax savings.
Time is on your side, but only until December 31, 2028. Start evaluating your investments today.
If you are considering an investment, you can also consult the specific solutions available at our specialized partners.
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