Hyper Depreciation 2026–2028

Tax incentives for investments in machinery and technologies

What is Hyper Depreciation 2026–2028

Hyper Depreciation is a tax incentive introduced by the 2026 Budget Law (Law No. 199/2025) to support business investments in new, technologically advanced and interconnected capital goods.

The incentive allows companies to increase the tax-recognized cost of the asset for depreciation purposes, enabling higher deductible depreciation quotas over time and reducing the overall tax burden.

It is not a direct grant and not a tax credit, but a tax increase of the asset’s fiscal cost.

Validity period

Hyper Depreciation applies to investments made:

  • from January 1, 2026

  • to September 30, 2028

The relevant date is the investment execution date according to standard tax rules (for example, delivery of the asset or completion of installation).

Depreciation increase rates

The fiscal cost increase varies depending on the total investment amount:

  • +180% up to €2.5 million

  • +100% from €2.5 million up to €10 million

  • +50% from €10 million up to €20 million

Eligible assets

Eligible assets include new capital goods intended for production facilities located in Italy, particularly:

  • Technologically advanced machinery and equipment

  • Digital systems and industrial software

  • Technologies for automation, interconnection and production process digitalization

  • Solutions related to energy efficiency and technological transition (within the limits set by regulations)

At present, there is no territorial restriction on the manufacturing origin of the asset.

Who can benefit

The incentive is available to companies that:

  • Generate business income

  • Are compliant with social security contributions and workplace safety regulations

  • Are not under liquidation or insolvency procedures

How it works in practice

The company purchases the eligible asset and includes it in its depreciation plan.

Thanks to the increased fiscal value, the company can deduct higher depreciation amounts over the following years.

Current regulatory status

The measure is established by the 2026 Budget Law.

Detailed operational procedures are linked to ministerial implementing provisions. It is therefore advisable to always verify the regulatory status at the time of the investment.

Relation to previous incentives

Investments made by December 31, 2025 may still qualify for previous tax credit schemes (Transition 4.0), if they meet the regulatory requirements in force at that time.

Investments made from January 1, 2026 fall under the new Hyper Depreciation regime.

Disclaimer

The information provided is for general guidance only and does not replace tax advice.
To properly assess the incentive applicable to your investment, consultation with a tax advisor is recommended.