The relaunch decree, in its complexity, provides a series of measures to support startups and innovative SMEs. (1) 500 million are allocated to the establishment of a fund for technology transfer, 200 million additional resources to the guarantee fund for startups and innovative SMEs and as much for the support fund to venture capital, 100 for the Smart & Start measure, 10 non-repayable for the purchase of services from incubators and accelerators. In addition to various tax incentives. (2) Details follow on the measures established for 2020.
Public funds
Technology transfer. The collaboration of public and private entities in the implementation of innovation projects and spin-offs is promoted through the establishment of a 'technology transfer fund', with an endowment of 500 million euros for the year 2020. The fund aims to promote initiatives and investments useful to enhance and use research results in companies operating in the national territory, with particular regard to start-ups and innovative SMEs. The implementation and management of interventions is entrusted to ENEA (National Agency for New Technologies, Energy and Sustainable Economic Development).
startups and innovative SMEs. 200 million euros are allocated to the guarantee fund for startups and innovative SMEs.
venture capital. The support fund for investments in the capital of start-ups and innovative SMEs receives additional support of 200 million euros. Investments can also be made through the subscription of participatory financial instruments, granting of subsidized loans, subscription of convertible bonds or other debt financial instruments that provide for the possibility of repayment of the contributions made.
Smart & Start. 100 million additional financial resources are allocated to support the establishment and development, throughout the national territory, of startups innovative (art. 38). (3)
Non-repayable grants. To the startups 10 million euros are also allocated in the form of non-repayable grants for the acquisition of services from incubators, accelerators, innovation hub, business angels and other public or private entities dedicated to the development of innovative companies.
Earthquake contribution. The non-repayable grants originally provided in favor of start-ups innovative located in the areas affected by the L’Aquila earthquake (equal to 30% of loans) are extended to startups innovative located in the municipalities affected by the 2016-2017 seismic events (Provinces of Fermo and Ascoli Piceno).
Tax incentives
Research and development. Expenses resulting from research contracts signed with start-ups innovative based in Italy are subject to a tax credit equal to 150% of their amount. (4)
Investments in startups and innovative SMEs. To the tax incentives already provided for private entities investing in startups and innovative SMEs is added a further benefit, exclusively for individuals. They can deduct from gross income tax an amount equal to 50% of investments made in the share capital of one or more startups or innovative SMEs (directly or through collective investment schemes that primarily invest in startups or innovative SMEs). The maximum deductible investment cannot exceed 100,000 euros per tax period and must be held for at least three years. Any partial or full sale of the investment before this period leads to forfeiture of the benefit and the obligation for the taxpayer to repay the deducted amount, along with legal interest.
Other measures, implementation
The retention period in the special section of the business register of start-ups innovative companies, as well as those prescribed under penalty of forfeiture for access to public incentives, are extended by 12 months.
The benefits intended for venture capital, non-repayable grants and tax incentives in favor of individuals are subject to implementing measures provided for in a specific decree that the MiSE (Ministry of Economic Development) must adopt by 18.7.20.
Dario Dongo and Selena Travaglio
Notes
(1) Decree Law 19.5.20, no. 34. Urgent measures on health, support for work and the economy, as well as social policies related to the COVID-19 epidemiological emergency, articles 38-42 and others. See previous articles:
-Relaunch decree, news for the agri-food sector. 20.5.20, https://www.greatitalianfoodtrade.it/mercati/decreto-rilancio-le-novità-per-il-settore-agroalimentare
Covid-19 and Relaunch Decree, measures aimed at workers and families. 26.5.20, https://www.greatitalianfoodtrade.it/mercati/covid-19-e-decreto-rilancio-misure-rivolte-a-lavoratori-e-famiglie
Relaunch Decree, not only FCA and Atlantia. Robin Hood in reverse in the food sector. 28.5.20, https://www.greatitalianfoodtrade.it/idee/decreto-rilancio-non-solo-fca-e-atlantia-robin-hood-al-contrario-nel-settore-alimentare
(2) The relaunch decree has also established a fund for digital entertainment (4 million euros), for the development of videogames, which is outside the scope of the present discussion
(3) Cf. Ministerial Decree 24.9.14
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT – Food Times) and Égalité.
Lawyer, specialized in intellectual property rights. LL.M. in agri-food law.
