by Roberta Imbimbo
In 2024, the Italian government launched a new plan aimed at transforming the country’s industrial and technological landscape. “The 5.0 Transition, which positions itself as an evolution of the still-active Transition 4.0 Plan, introduces an integrated approach that links Industry 4.0 technological innovation with the energy efficiency of the processes in which those assets are used,” explains Engineer Maurizio Fiaschè, CEO of F-Engineering Consulting. This highly specialized firm offers consulting services in subsidized finance, engineering, and sustainability, and aims to guide Italian companies through this unprecedented revolution, helping them improve business performance and achieve their goals through an innovative and sustainable approach.
Engineer Fiaschè, what exactly is the 5.0 Transition?
The 5.0 Transition is a government initiative introduced in 2024 that expands and integrates the previous National Transition 4.0 Plan. What sets this new plan apart is its specific technical and procedural focus: assets eligible for incentives must meet the requirements of the Transition 4.0 Plan, but with the added condition of reducing energy consumption in the processes where the assets are used. In other words, the 5.0 Transition is an enhanced version of the 4.0 Plan, with a specific focus on industrial processes and facilities. It offers an additional benefit (a bonus) when the adoption of new technologies leads to measurable improvements in energy efficiency within production processes and self-consumption from renewable energy sources (RES).
What are, in your view, the key pillars of this transition?
The main pillars of the 5.0 Transition are three: technological innovation, sustainability, and the centrality of the human being, with the aim of making European companies more resilient. Sustainability, therefore, should be a priority not only to reduce environmental impact but also to promote development models that place people at the heart of the value chain. In short, the 5.0 Transition is an evolution of Industry 4.0 that introduces the sustainability dimension—although the plan focuses specifically on reducing energy consumption and promoting renewable energy—offering incentives to companies that not only innovate but also improve the energy efficiency of their production processes, all in compliance with the DNSH principle (Do No Significant Harm).
Are there financial differences as well?
Absolutely! The 5.0 Transition differs from the 4.0 Plan in that it uses European funds, specifically those from Mission 7 – REPowerEU, rather than state resources. Article 38 of Decree-Law No. 19 of March 2, 2024, converted into Law No. 56/2024, outlines the 5.0 Transition Plan. Although negotiations with the European Commission are still ongoing, the approval of Article 38 and all subsequent amendments, including the simplifications introduced in the 2025 Budget Law (Law 207/2024), represents an important step forward for the Italian government in reinforcing its commitment to ecological transition and technological innovation in businesses.
What is the tax credit amount for energy efficiency?
The 5.0 tax credit features three rates—35%, 40%, and 45%—based on the percentage of energy consumption reduction achieved, applicable to the first investment bracket (up to €10 million). For the second bracket (between €10 million and €50 million), the rates drop to 5%, 10%, and 15%. The credit obtained from the so-called leading investment may be applied to an increased base of 130%, 140%, or 150% for RES plants (referred to as “driven” investments), depending on the energy efficiency class of the plant’s components.
The 5.0 Transition and SEZs: Is it a mutually exclusive relationship?
Initially, the 5.0 Transition tax credit was not intended to be combined with benefits from Special Economic Zones (SEZs) for the year 2024. However, Law 207/2024 introduced this possibility. That said, companies must exercise caution, as the rules for combining incentives funded by national and EU resources have recently been updated. FAQ 8.6, published on April 10, 2025, introduced the principle of netting. These mechanisms require careful planning, and companies are advised to rely on experienced consultants to maximize opportunities while avoiding missteps.
