Automotive: 300 million from the Mimit for small-scale development contracts
The ministerial decree is now in place
A new support scheme aimed at the automotive sector is set to be launched, with a total budget of 300 million euros. A decree issued by the Minister for Enterprise and Made in Italy, Adolfo Urso, sets out the rules for accessing the “mini development contracts”, which, by providing incentives for projects with eligible expenditure of between 5 and 20 million euros, should be better suited to the production capacities of the components sector – a sector currently under severe strain due to the knock-on effects of cuts by the German Volkswagen Group.
A subsequent ministerial decree will set the start date for the application period; in the meantime, businesses can begin preparing. Incentives will be provided for productive investments which may be accompanied, within certain limits, by industrial research and experimental development projects, as well as by closely related staff training programmes. There are three areas of investment: new vehicles and mobility solutions that minimise pollutant emissions; advanced components and technologies for sustainable, autonomous and connected mobility, including AI systems; and industrial diversification and conversion towards sectors with dual-use potential (such as defence). The investment programme, which may also be carried out jointly by up to five companies, may involve the creation of a new production facility, the expansion of the capacity of an existing facility, conversion, restructuring or, finally, the acquisition of a production site that has closed or is at risk of closure.
The incentive, in the form of a non-repayable grant and a subsidised loan, may cover up to 75 per cent of eligible expenditure. Such expenditure must relate to business premises, building works, machinery, plant and equipment, software and patents. Leased purchases are also permitted, subject to the limits set out in the General Block Exemption Regulation (GBER).
Exclusion clauses apply in cases of relocation as set out in the Incentives Code, and there is an obligation to retain the assets covered by the incentives within the production unit covered by the investment for at least five years (three years in the case of SMEs) from the date of completion of the project.
With regard to industrial research and experimental development programmes, eligible costs include staff costs, tools and equipment for the period in which they are used for the project, patents acquired or licensed, consultancy costs, additional expenses and operating costs – including materials – up to 20 per cent of the other costs.
