Budget Law 2023: energy bonus for businesses

On December 20, 2022, the Budget Law 2023 was published in the Official Gazette (Law 197/2022), which, through the energy bonus for businesses, provides some important innovations to try to reduce the effects of price increases on the cost of energy.

Energy bonus for businesses: what it is

The business energy bonus is a tax credit for Small and Medium Enterprises (SMEs), whether they are energy- or gas-intensive or not. This bonus, was already established in 2022, is raised from 40 percent to 45 percent for all those businesses that faced an increase in energy, fuel and gas expenses of 30 to 35 percent, depending on whether they are industries or small businesses.

Electricity-intensive enterprises (energy-intensive)

In this case, a tax credit of 45 percent instead of 40 percent is given with respect to expenses incurred for electricity purchases made and consumed in the first three months of 2023.

Natural gas-intensive enterprises (gasivore)

For companies with high consumption of natural gas, i.e., gasivore, a tax credit increased to 45 percent from the previous 40 percent is recognized by virtue of expenses incurred to purchase gas used in uses other than thermoelectric and consumed in the first quarter of 2023.

Non-gas companies

The same applies to non-gas-intensive businesses as well, with a tax credit at 45 percent from the previous 40 percent for the purchase of natural gas used for other than thermoelectric uses and consumed in the first quarter of 2023.

Non-energy enterprises

All those businesses that are not energy-intensive and have available electricity meters equal to or greater than 4.5 kW are granted a tax credit of 35 percent instead of 30 percent with respect to the expenditure incurred on electricity used in the first quarter of 2023.

In addition, for the first quarter of 2023, there is a cancellation of electricity system charges for utilities with power up to 16.5 kW, both domestic and non-domestic low voltage.
Reduction of the VAT rate to 5 percent instead of 10 or 22 percent on methane gas used for industrial and civil uses, and also on thermal energy and supplies for district heating services.

For agricultural and fishing enterprises

For agricultural and fishing enterprises, tax credits of 20 percent are provided on the expenditure incurred to purchase fuel used both to heat buildings useful for raising animals and to heat greenhouses.

How to use tax credits

Tax credits can be used, for eligible companies, by offsetting through F24 form. Or they can be transferred according to terms, methods and timeframes established by theInternal Revenue Service.

Tera is available to support your company throughout the tax credit recognition process.

Contact us to find out how to get the benefits.

For further information call 055 577 297 or write to italy@teraenergy.com