Last Updated on December 22, 2025
10 December saw publication of Legislative Decree no. 184 of 27 November 2025 known as the Incentive Code. In force from 1 January 2026, this measure brings new order and more transparency to the business aid system, replacing the current fragmented nature of the measures for these benefits.
In detail, this Decree defines the principles that regulate the procedures for granting, managing and revoking benefits, including the tax and contribution incentives and introduces common tools for the programming, monitoring and control of incentives, in order to promote more efficient management of public resources.
In general terms, the recognition of incentives is based on a system of rewards that values companies that really invest in equality, inclusion and social responsibility, from certification of gender equality to the hiring of people with disabilities beyond legal obligations, through to policies for the fostering of youth and female work and measures to support birth and care needs. On the other hand, access to benefits is precluded when specific impediments exist, such as irregular contribution payments or delocalisation or termination of activities expressly sanctioned by the Decree.
Particular significance is given, in fact, to the new provisions to combat delocalisation and protect employment levels. These rules apply when the incentive funds investments made in Italy and the company subsequently transfers, in whole or in part, the activity in question from the production site of the original incentive to another location.
If this transfer takes place within 5 years from completion of the investment to another production unit in Italy or in a Country in the EU or the European Economic Area (EEA), the company shall lose the benefits for the transferred part and is required to return the sums received (plus interest), if the incentive is linked to a specific area and the displacement takes place outside that area.
The guidelines are even stricter in the event that the delocalisation involves countries outside the EU or the EEA. In this case, if the transfer takes place within 5 years from completion of the investment (10 for large companies), the employer loses all the benefits received for the investments made, even when they do not refer to a specific area in Italy. In addition to the obligation to return any incentives already received, with relative interest, administrative sanctions of between two and four times the funds received shall also be applied, as well as the ineligibility to access any new benefits for the 5 years following the delocalisation, extended to 10 years for large companies.
The Decree also stipulates that companies intending to proceed with the abovementioned delocalisation must give at least 90 days’ notice (180 for large companies), of their intention to the Ministry of Business and Made in Italy as well as the Ministry of Labor. Violation of this obligation shall render any dismissals connected with the operation null and void.
We remind you that a similar obligation is already in place pursuant to Budget Law 2022 (art. 1, paragraphs 224-237-bis, L. 234/2021), requiring employers with an average of 250 employees intending to close a site (plant or branch) and the dismissal of at least 50 workers, to give notice of this intention. The Code intervenes on this regulation, establishing that, if at the outcome of the procedure, the company permanently ceases production activity, or a significant part of it, with a reduction in staff greater than 40%, it shall lose its incentives, be required to return those received in the previous 10 years, shall not be eligible for new benefits, and shall also be subject to the relevant administrative penalties.
Toffoletto De Luca Tamajo is at your disposal for any support and/or clarification you may need.
For further information: comunicazione@toffolettodeluca.it
