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DEVELOPMENT CONTRACTS

Industry

The Development Contract for Industry subsidizes business initiatives aimed to produce goods and/or services

Minimum investment amounts

Total Program € 20MLN (50MLN for Fast Track)
Project of the applying enterprise € 10MLN
Project of member companies (max 4) € 1.5MLN

Terms of access

To get access to Development Contracts for Food Industry, at least two of the following requirements must occur:

  1. Positive impact on employment
  2. Implementation/consolidation of direct and extended supply chain systems
  3. presence on foreign markets or foreign investment attraction
  4. Investments for product or process or organizational innovation
  5. Positive Environmental Impact (energy efficiency, emission reduction, circular economy, rehabilitation and redevelopment of disused or underutilized areas)

To enter Fast Track, there are at least three requirements that must be met.

Eligible projects

a. Creation of a new production unit.
b. Capacity expansion of an existing production unit.
c. Conversion of an existing production unit, such as diversification of production to obtain products that are not in the same class of the ATECO 2007 classification of economic activities as the products previously manufactured.
d. Renovation of an existing production unit, such as a fundamental change in the existing production process implemented through the introduction of a new production process or the provision of a significant improvement to the existing production process, capable of increasing the level of efficiency or flexibility in the performance of the economic activity covered by the investment program (e.x., “The investment program is a new production process or the provision of a significant improvement to the existing production process, which is capable of increasing the level of efficiency or flexibility in the performance of the economic activity covered by the investment program. cost reduction, increased product and/or process quality, reduced environmental impact and improved safety conditions at work.
e. Purchase of an existing production unit located in a crisis area and owned by an enterprise not subject to bankruptcy proceedings, such as the acquisition of the assets of a production unit that has closed or would have closed in the absence of the acquisition. For only large enterprises in areas (c) of the 2022-2027 Carta degli Aiuti (Interactive Aid Map), the investment project must be aimed at “conversion.”

Where to implement the project
  • Establishment of a new production unit
    SMEs: All over Italy
    LARGE COMPANY: only in areas included in the Carta degli Aiuti (interactive aid map)
  • Capacity expansion of an existing production unit
    SMEs: All over Italy
    LARGE COMPANY: only in areas included in Zone A in Carta degli Aiuti (interactive aid map) (such as regions Basilicata, Calabria, Campania, Apulia, Sardinia, Sicily, Molise)
  • Conversion of an existing production unit
    SMEs: All over Italy
    LARGE ENTERPRISE: only in areas included in the Carta degli Aiuti (Interactive Aid Map)
  • Renovation of an existing production unit
    SMEs: All over Italy
    only in areas included in Zone A in Carta degli Aiuti (Interactive Aid Map) (such as Basilicata, Calabria, Campania, Apulia, Sardinia, Sicily, Molise)
  • Purchasing of an existing production unit
    SMEs: All over Italy
    LARGE ENTERPRISE: Zone A Carta degli Aiuti (Interactive Aid Map) (such as Basilicata, Calabria, Campania, Apulia, Sardinia, Sicily, Molise regions) and Zone C (North-central Italy) only in case of “reconversion.”

Projects must start after the application for the subsidies.

Investment starting is defined as the date when construction works start or the date of the first legal commitment to the supplier or any other commitment that makes the investment irreversible. Land purchasing and preliminary works such as requests for permits or conducting feasibility studies are not considered as project start.

Subsides

Southern Regions (Calabria, Campania, Apulia, Sicily) Southern Regions (Basilicata, Molise, Sardinia) North Central regions (only municipalities in Aid Charter 2022-2027) North-central regions (municipalities outside the Aid Charter 2022-2027)
Small companies
60%
50%
30% to 45%
20%
Medium companies
50%
40%
20% to 35%
10%
Large companies
40%
30%
10% to 25%
For cities in the province of Taranto, the intensity is increased by 10 points%.
For some cities in southern Sardinia (Sulcis Iglesiente area) the intensity is increased by 10 points%.