How to bring Augmented Reality in your Italian factory with huge tax incentives

During 2016 the Industry 4.0 topic has been widely discussed, an after becoming an established model in Germany and in the United States, it has risen powerfully also in the Italian debate about innovation and manufacturing.

As of today it seems inevitable, for factories pursuing efficiency and productivity gains, to explore and embrace new technological trends including IoT, big data analytics, Virtual & Augmented Reality, advanced robotics.

Tax incentives of the Italian Government in the budget law

The strong interest Italian companies have shown with regard to industry 4.0 opportunities has not gone unnoticed by the Ministry of Economic Development which has set up an ad hoc incentive plan.

Incentives are limited to firms which make investments, no calls for access to the funds then, but important tax relief for purchases of tangible and intangible assets related to the Industry 4.0 technologies.

Subject of the incentives are also the Augmented Reality systems for industrial purposes and which include both hardware components (eg. Wearable devices), and software.
We previously covered the potential of this technology and its possible applications in the shop floor.

So this is a great opportunity for all those companies who plan to introduce Augmented Reality in industrial processes at different possible levels, from experimental use to test the potential of AR on a small scale, up to the industrialization of the technology.

Tax incentives for Augmented Reality: super and hyper depreciation

The Budget Act 2017 provides tax incentives for all those companies that in 2017 will invest in tangible and / or intangible assets related to the Industry 4.0 technologies. Specifically, the incentives are the super depreciation (140%) and the hyper depreciation 250%, the latter a novelty in the context of tax incentives for factories.

How do tax incentives work

To take advantage of incentives Italian companies just have to spend the money, without having to run any request and without having to participate in any tender.
For investments in assets with a cost of less than 500,000 euro a simple statement made by the legal representative will be sufficient (DPR 445/2000), while if the investments exceed that limit it is necessary a sworn technical report issued by an engineer or an industrial expert.

Let’s take a look at a practical investment in an Augmented Reality System with the benefits arising from hyper depreciation at 250%.
Suppose that a company decides to invest 50,000 Euros for an Augmented Reality project applied to industry, in the following table we report the actual savings.

Cost of the goods € 50.000
Tax cost € 125.000
Tax savings (IRES 24%) € 30.000
Actual cost of the goods € 20.000

Are you ready to bring Augmented Reality in your factory?

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This post is also available in: Italian