The relaunch decree, in its complexity, includes a number of measures to support innovative startups and SMEs. (1) 500 million is devoted to the establishment of a technology transfer fund, 200 million additional resources to the guarantee fund for startup and innovative SMEs and as many for the fund to support the venture capital, 100 for the Smart & Start measure, 10 grants for the purchase of services from incubators and accelerators. As well as tax incentives of various kinds. (2) Details to follow on measures set for 2020.
Public funds
Technology transfer. The collaboration of public and private entities in the implementation of innovation and spin-off projects is promoted through the establishment of a ‘technology transfer fund,’ with an allocation of 500 million euros for the year 2020. The fund is used to promote initiatives and investments useful for the exploitation and use of research results at companies operating in the country, with a focus on innovative start-ups and SMEs. The implementation and management of the interventions is entrusted to ENEA (National Agency for New Technologies, Energy and Sustainable Development).
Innovativestartups and SMEs. 200 million is allocated to the guarantee fund for innovative startups and SMEs.
Venture Capital
. The fund to support investment in the capital of innovative start-ups and SMEs receives an additional support of 200 million euros. Investments can also be made in the forms of subscription to equity financial instruments, disbursement of subsidized loans, subscription to convertible bonds or other debt financial instruments that provide for the possibility of repayment of the contributions made.
Smart & Start
. 100 million in additional financial resources are earmarked to support the establishment and development, throughout the country, of innovative startups (Art. 38). (3)
Outright grants. Startups are also allocated 10 million euros in the form of non-repayable grants for the acquisition of services from incubators, accelerators, innovation hubs, business angels and other entities, public or private, dedicated to the development of innovative businesses.
Earthquake contribution. The non-repayable grants originally provided for innovative startups located in areas affected by the L’Aquila earthquake (equal to 30 percent of loans) are extended to innovative startups located in municipalities affected by the 2016-2017 earthquake events (Fermo and Ascoli Piceno provinces).
Tax incentives
Research and development. Expenses arising from research contracts entered into with innovative start-ups based in Italy are subject to a tax credit of 150 percent of their amount. (4)
Investment in innovative startups and SMEs. In addition to the tax incentives already provided for private entities investing in innovative startups and SMEs, an additional benefit is being added, exclusively for the benefit of individuals. Who can deduct from their gross income tax an amount equal to 50 percent of the investments made in the share capital of one or more startups or innovative SMEs (either directly or through collective investment schemes, which mainly invest in startups or innovative SMEs). The maximum deductible investment cannot exceed 100 thousand euros per tax period and must be maintained for at least three years. Any transfer, even partial, of the investment before the expiration of this period results in forfeiture of the benefit and the taxpayer’s obligation to return the amount deducted, together with statutory interest.
Other measures, implementation
The term for remaining in the special section of the business register of innovative start-ups, as well as those under penalty of forfeiture for access to public incentives, are extended by 12 months.
Facilities intended for venture capital, non-repayable grants and tax incentives for individuals are subject to implementing measures set forth in a special decree to be adopted by the MiSE (Ministry of Economic Development) by 18.7.20.
Dario Dongo and Selena Travaglio
Notes
(1) D. L. 19.5.20, no. 34. Urgent measures on health, labor and economic support, and social policies related to the epidemiological emergency from COVID-19, Articles 38-42 et al. See previous articles:
-Relaunch decree, what’s new for the agribusiness sector.
. 5/20/20, https://www.greatitalianfoodtrade.it/mercati/decreto-rilancio-le-novità-per-il-settore-agroalimentare
-Covid-19 and revitalization decree, measures aimed at workers and families. 5/26/20, https://www.greatitalianfoodtrade.it/mercati/covid-19-e-decreto-rilancio-misure-rivolte-a-lavoratori-e-famiglie
-Relaunch decree, not just FCA and Atlantia. Reverse Robin Hood in the food sector. 5/28/20, https://www.greatitalianfoodtrade.it/idee/decreto-rilancio-non-solo-fca-e-atlantia-robin-hood-al-contrario-nel-settore-alimentare
(2) The Relaunch Decree also established a digital entertainment fund (4 million euros), for the development of videogames, which is beyond the scope of this discussion
(3) Cf. DM 24.9.14
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
Lawyer, specializing in intellectual property rights. LL.M. in agri-food law.
