Timeline
  • 2017Approved/Agreed
  • 2018Implementation
  • 2019Implementation
  • 2020Implementation
  • 2021Implementation
  • 2022Discontinued
  • 2024Approved/Agreed
ID number
37027

Background

A brief overview of the context and rationale of the policy development, explaining why it is implemented or why it is important.

Technological and digital transformation of companies is necessary for economic growth. Training, especially in advanced technologies is therefore essential and it is possible to boost innovation and eco-friendly investments.

Objectives

Goals and objectives of the policy development.

The Transition plan 4.0 which includes the training tax credit development aims to promote company investments in continuing vocational training (CVET) on the main technologies that support the technological and digital transition of companies.

Description

What/How/Who/For whom/When of the policy development in detail, explaining its activities and annual progress, main actors and target groups.

The Transition plan 4.0 is managed by the Ministry of Economic Development and includes the measure Training tax credit 4.0.

Training tax credit 4.0 for companies is related to the percentage of the corporate costs of employees during the training activities. The maximum annual total amount can be EUR 300 000 for small companies and EUR 250 000 for medium and large companies.

2017
Approved/Agreed

The training tax credit 4.0 was approved.

2018
Implementation

The measure was implemented.

2019
Implementation

In 2019, a measure named Transition plan 4.0, was introduced by the Italian financial Law, i.e., Law No 160 of 27 December 2019. The measure aimed to support companies in their transition towards the envisaged in the Industry 4.0 plan. In this law, all the previous government interventions were included (Industry 4.0, 2017-18).

Law No 160 also introduced a voucher for promoting the job post of innovation manager post in companies. The rationale of the introduction of the voucher was to support the technological and digital transition processes of SMEs and company networks by supporting the creation of innovation manager post, who is able to implement the technologies provided in industry 4.0.

SMEs and company networks that hired managers who encouraged digitalisation and corporate reorganisation processes are eligible to use the voucher. The amount of the voucher is a maximum of EUR 40 000 per year. It cannot exceed the 50% of the costs incurred starting from the 2019 tax period, increased to EUR 80 000 for networks of companies.

2020
Implementation

The 2021 budget Law (Law 178/2020) extended the Training tax credit 4.0 until 31 December 2022.

2021
Implementation

In 2021, each company investing in high-level vocational training for its employees was eligible to receive a tax credit of 25% for an amount up to EUR 30 000. This amount, and the respective tax credit, corresponds to company expenses for the period that their employees were involved in training activities. Additional requirements were:

  1. the duration of training cannot be less than 6 months (training can be provided either in Italy or abroad);
  2. they should lead to specialisation via advanced courses. The indicative content of these courses is defined in the National industry plan 4.0 (in areas such as big data, data analysis, cloud computing, cyber-physical systems, the internet of things).

The Ministry of Economic Development approved with the Directorial Decree of 6 October 2021, a model that employers must use while communicating information/data regarding the dissemination (i.e., the spread of information applicable to the measure). application of the measure in their company, to evaluate the trend, and the effectiveness of the training tax credit 4.0 measure.

2022
Discontinued

The Budget Law 2022 (Law 197/2022) discontinued the Transition plan 4.0, therefore also the Training tax credit 4.0, and stopped financing the voucher scheme.

2024
Approved/Agreed

The Decree-Law of 2 March 2024, no. 19, and the implementing provisions of the National recovery and resilience plan (NRRP), have introduced a new tax credit for investments made in the 2024-25 period in connection with the 'Transition 5.0 Plan.' Particularly, the tax incentive is regulated by Article 38 of the legislative decree. The aim of this measure is to support the digital and energy transformation of enterprises by providing them tax credit, calculated on their investments and the percentage of energy reduction at the production facility and process level.

The Interministerial decree issued on July 24, 2024, by the Ministry of Enterprises and Made in Italy, published in the Official Gazette No. 183 on August 6, 2024, introduced the Training Tax Credit 5.0 to promote workforce training within the 'Transition 5.0 plan'. This initiative, part of the NRRP, aims to drive the digital and ecological transition of Italian companies and is a development of the previous measure Training Tax Credit 4.0.

Through this measure, companies can benefit from a tax credit of up to 10% of training-related expenses, with a maximum limit of EUR 300 000, for investments in capital goods and facilities dedicated to self-produced renewable energy for self-consumption. Eligible expenses include fees for accredited external trainers (from regional bodies, universities, research institutions, interprofessional funds, and other certified entities), operational costs (such as travel, teaching materials, and depreciation of equipment used exclusively for training), consultancy services for planning and managing training projects and personnel costs for employees, business owners, and worker-members involved in the training.

Training programs must have a minimum duration of 12 hours, with at least one module, lasting no less than four hours, focused on essential skills for the digital and ecological transition. Topics include cybersecurity, artificial intelligence, robotics, blockchain, Internet of Things, cloud computing, additive manufacturing, virtual and augmented reality, as well as subjects related to energy efficiency, renewable energy sources and sustainable design. Each program concludes with a final exam to certify the acquisition of skills, with certification issued by an accredited entity.

Bodies responsible

This section lists main bodies that are responsible for the implementation of the policy development or for its specific parts or activities, as indicated in the regulatory acts. The responsibilities are usually explained in its description.
  • Ministry of Economic Development
  • Ministry of Economy and Finance
  • Ministry of Labour and Social Policies

Target groups

Those who are positively and directly affected by the measures of the policy development; those on the list are specifically defined in the EU VET policy documents. A policy development can be addressed to one or several target groups.

Learners

  • Persons in employment, including those at risk of unemployment

Entities providing VET

  • Companies
  • Small and medium-sized enterprises (SMEs)

Thematic categories

Thematic categories capture main aspects of the decision-making and operation of national VET and LLL systems. These broad areas represent key elements that all VET and LLL systems have to different extents and in different combinations, and which come into focus depending on the EU and national priorities. Thematic categories are further divided into thematic sub-categories. Based on their description, policy developments can be assigned to one or several thematic categories.

Modernising VET offer and delivery

This thematic category looks at what and how individuals learn, how learning content and learning outcomes in initial and continuing VET are defined, adapted and updated. First and foremost, it examines how VET standards, curricula, programmes and training courses are updated and modernised or new ones created. Updated and renewed VET content ensures that learners acquire a balanced mix of competences that address modern demands, and are more closely aligned with the realities of the labour market, including key competences, digital competences and skills for green transition and sustainability, both sector-specific and across sectors. Using learning outcomes as a basis is important to facilitate this modernisation, including modularisation of VET programmes. Updating and developing teaching and learning materials to support the above is also part of the category.

The thematic category continues to focus on strengthening high-quality and inclusive apprenticeships and work-based learning in real-life work environments and in line with the European framework for quality and effective apprenticeships. It looks at expanding apprenticeship to continuing vocational training and at developing VET programmes at EQF levels 5-8 for better permeability and lifelong learning and to support the need for higher vocational skills.

This thematic category also focuses on VET delivery through a mix of open, digital and participative learning environments, including workplaces conducive to learning, which are flexible, more adaptable to the ways individuals learn, and provide more access and outreach to various groups of learners, diversifying modes of learning and exploiting the potential of digital learning solutions and blended learning to complement face-to-face learning.

Centres of vocational excellence that connect VET to innovation and skill ecosystems and facilitate stronger cooperation with business and research also fall into this category.

Modernising VET standards, curricula, programmes and training courses

VET standards and curricula define the content and outcomes of learning, most often at national or sectoral levels. VET programmes are based on standards and curricula and refer to specific vocations/occupations. They all need to be regularly reviewed, updated and aligned with the needs of the labour market and society. They need to include a balanced mix of vocational and technical skills corresponding to economic cycles, evolving jobs and working methods, and key competences, providing for resilience, lifelong learning, employability, social inclusion, active citizenship, sustainable awareness and personal development (Council of the European Union, 2020). The thematic sub-category also refers to establishing new VET programmes, reducing their number or discontinuing some. It also includes design of CVET programmes and training courses to adapt to labour market, sectoral or individual up- and re-skilling needs.

Acquiring key competences

This thematic sub-category refers to acquisition of key competences and basic skills for all, from an early age and throughout their life, including those acquired as part of qualifications and curricula. Key competences include knowledge, skills and attitudes needed by all for personal fulfilment and development, employability and lifelong learning, social inclusion, active citizenship and sustainable awareness. Key competences include literacy; multilingual; science, technology, engineering and mathematical (STEM); digital; personal, social and learning to learn; active citizenship, entrepreneurship, cultural awareness and expression (Council of the European Union, 2018).

Integrating digital skills and competences in VET curricula and programmes

This thematic sub-category refers to updating VET curricula and programmes to incorporate skills related and needed for the digital transition, including sector- and occupation-specific ones identified in cooperation with stakeholders.

Supporting lifelong learning culture and increasing participation

Lifelong learning refers to all learning (formal, non-formal or informal) taking place at all stages in life and resulting in an improvement or update in knowledge, skills, competences and attitudes or in participation in society from a personal, civic, cultural, social or employment-related perspective (Erasmus+, Glossary of terms, https://erasmus-plus.ec.europa.eu/programme-guide/part-d/glossary-common-terms). A systemic approach to CVET is crucial to ensure adaptability to evolving demands.

This broad thematic category looks at ways of creating opportunities and ensuring access to re-skilling and upskilling pathways, allowing individuals to progress smoothly in their learning throughout their lives with better permeability between general and vocational education and training, and better integration and compatibility between initial and continuing VET and with higher education. Individuals should be supported in acquiring and updating their skills and competences and navigating easily through education and training systems. Strategies and campaigns that promote VET and LLL as an attractive and high-quality pathway, providing quality lifelong guidance and tailored support to design learning and career paths, and various incentives (financial and non-financial) to attract and support participation in VET and LLL fall into this thematic category as well.

This thematic category also includes many initiatives on making VET inclusive and ensuring equal education and training opportunities for various groups of learners, regardless of their personal and economic background and place of residence – especially those at risk of disadvantage or exclusion, such as persons with disabilities, the low-skilled and low-qualified, minorities, migrants, refugees and others.

Financial and non-financial incentives to learners, providers and companies

This thematic sub-category refers to all kinds of incentives that encourage learners to take part in VET and lifelong learning; VET providers to improve, broaden and update their offer; companies to provide places for apprenticeship and work-based learning, and to stimulate and support learning of their employees. It also includes measures addressing specific challenges of small and medium-sized enterprises (SMEs) willing to create work-based learning opportunities in different sectors. Incentives can be financial (e.g. grants, allowances, tax incentives, levy/grant mechanisms, vouchers, training credits, individual learning accounts) and non-financial (e.g. information/advice on funding opportunities, technical support, mentoring).

Providing for individuals' re- and upskilling needs

This thematic sub-category refers to providing the possibility for individuals who are already in the labour market/in employment to reskill and/or acquire higher levels of skills, and to ensuring targeted information resources on the benefits of CVET and lifelong learning. It also covers the availability of CVET programmes adaptable to labour market, sectoral or individual up- and reskilling needs. The sub-category includes working with respective stakeholders to develop digital learning solutions supporting access to CVET opportunities and awarding CVET credentials and certificates.

Subsystem

Part of the vocational education and training and lifelong learning systems the policy development applies to.
CVET

Country

Type of development

Policy developments are divided into three types: strategy/action plan; regulation/legislation; and practical measure/initiative.
Regulation/Legislation
Cite as

Cedefop, & ReferNet. (2025). Training tax credits: Italy. In Cedefop, & ReferNet. (2025). Timeline of VET policies in Europe (2024 update) [Online tool].

https://www.cedefop.europa.eu/nl/tools/timeline-vet-policies-europe/search/37027