What is Italy's 2026 iperammortamento incentive?
Italian tax incentive (Law 199/2025) subsidizing advanced AI software, platforms and models, but excluding SaaS/cloud and requiring interconnection.
Iperammortamento 2026 (Law 199/2025) is the Italian tax incentive that replaced Transizione 5.0, whose tax credit closed to new investments on 1 January 2026. Its Allegato V explicitly subsidizes advanced AI software, platforms and models: it is no longer just an incentive for machinery, but explicitly covers the software and AI layer of a digitalization investment, which makes it relevant for anyone bringing data and AI systems into production or into a company. Compared to Transizione 5.0, tied to a measurable energy-consumption reduction that excluded many purely software projects, it shifts the focus to investment in capital goods and software supporting digital transformation: a demand forecast that lines up, almost literally, with what a data and AI consultancy delivers every day. Two conditions, though, rule out projects that would seem eligible at first glance, mandatory interconnection with the management system and the exclusion of SaaS and cloud, which shapes architectural choices from the design phase for anyone who wants to access the credit.
What changes compared to Transizione 5.0
Transizione 5.0 tied the incentive to a measurable reduction in energy consumption, a requirement that excluded many purely software projects. Iperammortamento 2026 shifts the focus to investment in capital goods and software supporting digital transformation, with Allegato V explicitly dedicated to advanced AI software, platforms and models: a demand forecast that lines up, almost literally, with what a data and AI consultancy delivers.
The two traps to know before investing
Two conditions rule out projects that would seem eligible at first glance. First, interconnection is mandatory: the asset must automatically exchange data with the company's management or production system, not simply be purchased and installed. Second, SaaS and cloud models are excluded: the incentive subsidizes software and platforms owned by the company, not subscriptions to third-party managed services, which shapes architectural choices (on premise or dedicated hosting, not just public cloud) from the design phase, if accessing the credit is also a goal.
This entry is informational and does not constitute tax advice: before planning an investment on this basis, involve your accountant or tax advisor.
Related terms
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