Commentary on Ordinance No. 10856 of 2024: Business Incentives and Prerequisites for Contributions
Recently, Ordinance No. 10856 of April 22, 2024, has garnered interest due to its significance in business incentives, governed by Legislative Decree No. 415 of 1992, converted into Law No. 488 of the same year. This ruling by the Court of Cassation clarifies the necessary requirements for businesses to benefit from these contributions, with a particular focus on the timing of investment commencement.
Prerequisites for Obtaining Incentives
The Court has established that to access the contributions provided for by the regulations, applications must pertain to investment programs initiated from the day following the application submission. This means that businesses cannot commence their projects before formally requesting the incentive, under penalty of revocation of granted benefits.
- Investment programs must be initiated after the application submission
- Verification of commencement is not limited to material works only
- Assessment of the link between investment decision and contribution
Business incentives pursuant to d.l. No. 415 of 1992 converted into l. No. 488 of 1992 - Prerequisites - Investment programs initiated from the day following the application submission - Temporal assessment - Content - Purpose. Regarding incentives for businesses under d.l. No. 415 of 1992, converted with amendments into l. No. 488 of 1992, in accordance with the European Commission's decision of July 12, 2000, adopted by the Ministerial Decree of the Ministry of Industry of July 14, 2000, for the period between 2000 and 2006, applications for contributions must concern investment programs initiated from the day following the application submission date; otherwise, benefits that have nevertheless been granted must be revoked. The temporal assessment in this regard is not limited to checking the execution of works that constitute the material implementation of the program but must include any activity, including contractual ones, capable of demonstrating the project's commencement, in order to verify whether there is a direct link between the investment decision and the contribution, and whether the incentive, constituting state aid, has effectively fulfilled its characteristic incentivizing function.
The Significance of the Ruling in Practice
This ruling is crucial as it establishes a principle of temporal clarity. It is not enough to submit an incentive application; it is essential that investment-related activities are initiated only thereafter. Furthermore, the temporal assessment must not be limited to physical works alone but must also encompass other activities that demonstrate the project's commencement.
Conclusions
In conclusion, Ordinance No. 10856 of 2024 represents an important reference for businesses intending to access public contributions. The Court of Cassation has clarified that adherence to the timing and methods of investment commencement is essential to avoid the revocation of incentives. Businesses must therefore pay particular attention to these aspects to avoid jeopardizing their public funding opportunities.
