On March 22, 2022, Decree-Law No. 21 (D.L. No. 21) of March 21, 2022, on Urgent Measures to Counter the Economic and Humanitarian Effects Caused by the Ukrainian Crisis entered into effect in Italy.
Reduction of Taxes, Excises Duties, and Other Fiscal Obligations
In view of the economic effects deriving from the exceptional increase in the prices of energy products, D.L. No. 21 reduces excise duty rates on gasoline and diesel fuel to 478.40 euros (about US$520) per 1,000 liters for gasoline and 367.40 euros (about US$399) per 1,000 liters for oil from gas or diesel. (D.L. No. 21, art. 1(1).) To prevent the risk of speculative maneuvers deriving from the redetermination of these excise rates, the Guarantor for Price Surveillance, in conjunction with the Guardia di Finanza (Financial Police) is to monitor the trend of prices within the entire commercial distribution chain of such products. (Art. 1(7).)
Tax Credits for the Purchase of Electricity and Natural Gas
Under the new legislation, companies equipped with electricity meters with available power equal to or greater than 16.5 kW receive a tax credit equal to 12% of expenses incurred for the purchase of energy that is actually used in the second quarter of 2022 if the price has increased more than 30% from the average price during the same quarter of 2019. (Art. 3(1.).)
In addition, because of the higher costs of natural gas, companies other than those with a high consumption of natural gas receive a tax credit equal to 20% of the costs incurred for the purchase of the same gas consumed during the second quarter of 2022. (Art. 4(1).) Tax credits are also increased in favor of energy-intensive and gas-intensive companies. (Art. 5(1).)
Energy-intensive companies and companies with a high consumption of natural gas can transfer their tax credits, but only in full, before December 31, 2022, to other entities, including credit institutions and financial intermediaries, without the right of subsequent transfer, except two further transfers only if made in favor of registered banks and financial intermediaries. (Arts. 3(3) & 9(1).)
Installment Payment Plans for Energy Consumption
To contain the negative economic effects of the increase in the prices of energy supplies, Italy-based companies and final customers of electricity and natural gas can request Italy-based suppliers to receive payments in installments for energy consumption between May and June 2022 for a maximum of 24 monthly installments. (Art. 8(1).) Such payment plans receive the unconditional and irrevocable guarantee of the state. (Art. 8(4).)
Increase in the Social Bonus for Electricity and Gas
The new legislation raises the value of the current electricity and gas social bonus established in article 1.3 of the Decree of the Ministry of Economic Development of December 29, 2016 from 8,107.5 euros to 12,000 euros (about US$8,812 to $13,044). (Art. 6(1).)
The new decree-law also increases the powers of the Guarantor for Price Surveillance established in article 2, paragraph 199 of Law No. 244 of December 24, 2007 to request from companies data and specific information on the reasons for price changes and to impose fines for noncompliance of up to 200,000 euros (about US$217,401). (Art. 7(1).)
Measures for the Protection of Workers vis-à-vis the Economic Crisis
For 2022, the legislation creates a fuel voucher for workers of up to 200 euros (about US$217) per worker. This voucher does not constitute income for tax purposes. (Art. 2(1).)
Also, for 2022, the legislation appropriates funds to assist employers who are unable to pay ordinary wage supplements established by the law. (Art. 11(1).)
Price Review in Public Procurement Contracts
To mitigate the economic effects arising from the exceptional increases in the prices of some building materials, fuels, and energy products, the Ministry of Sustainable Infrastructure and Mobility may grant payment advances to contractors equal to 50% of the due amounts. (Art. 23(1).)
Strengthening Safety, National Defense, and Electronic Communication Networks
The decree-law approves new technical provisions aimed at fostering “Golden Power”— that is, the government’s power to intervene in activities of strategic importance for the national defense and security system, specifically in this case broadband electronic communications based on 5G and cloud technology. (Art. 28(1).) Accordingly, new measures are approved to strengthen the cybersecurity of networks, information systems, IT services of public agencies, and the supply of critical raw materials in order to prevent damage to them, particularly from Russia-linked IT companies or entities. (Art. 29(1).)
The decree-law also establishes previous notification obligations for Italian companies or companies established in Italy that intend to export, directly or indirectly, certain strategic materials outside the European Union. (Art. 30(2).)
Additional Funding to Support Economic Activities
The decree-law provides for additional funds to support distressed economic activities throughout the country as a result of the exceptional increase in the prices of energy products. Among the things the funds will be used for are the following:
- Toll contributions for the road transport sector. (Art. 15(1).)
- Tax credits for the purchase of fuels for agricultural and fishing activities. (Art. 18(1).)
- Renegotiation and restructuring of loans in the agricultural, fishing and aquaculture areas. (Art. 19(1).)
- Promoting ecological practices in biogas production, reducing the use of chemical fertilizers, and increasing the supply of organic matter in the soils. (Art. 21(1).)
Measures to Address Increased Immigration as a Result of Russia’s War of Aggression
In the context of the state of emergency declared by the Council of Ministers on February 28, 2022, concerning the effects in Italy of the war in Ukraine and, in particular, the provision of relief and assistance to Ukrainian refugees in the national territory, the legislation strengthens the resources and powers of the National Commission for the Right of Asylum and the territorial commissions and sections for the recognition of international protection. (Art. 33(1).)
In addition, the legislation exempts Ukrainian doctors residing in Ukraine before February 24, 2022, from the regulations applicable to the recognition of professional health qualifications for foreigners in order to expedite their integration into the Italian health system. (Art. 34(1).)