State aid case SA.48571 | Tax credit for productive investments in Italian regions affected by 2016-2017 earthquakes

Further information:

The aid takes the form of a tax credit for all companies making initial investments in the area. Support to large companies is limited to aid for setting up a new company, diversifying a company's activity or acquiring the assets of a company that has closed. The scheme has an overall budget of €43.9 million and runs from 2018 to 2020.

Given its limited duration, budget, and geographical scope, the Commission found that the aid scheme will contribute in a proportionate manner to the promotion of economic development and recovery in central Italy.

Background information:

In 2016 and 2017, four major earthquakes hit central Italy, affecting around 600,000 people in an area of around 8,000 km². The region remained subject to abnormal seismic afterwards, leading to a progressive desertification of the affected areas.

The Italian aid scheme approved today aims at complementing such measures, to mitigate the economic and social damages in the areas which have been affected by i) a significant drop of GDP, ii) a substantial loss of employment, iii) a reduction of economic activity by more than 50%, and iv) a significant decline in companies' turnover compared to pre-earthquakes levels. This concerns 140 municipalities in the Italian regions of Lazio, Umbria, Marche and Abruzzo.

The European Commission found on 6 April 2018 an Italian aid scheme to support investments in regions affected by earthquakes in 2016 and 2017 to be in line with EU State aid rules.

European Commission: Press Release, 06.04.18: Commission approves €44 million Italian scheme to support economic recovery in regions affected by earthquakes in 2016 and 2017 http://europa.eu/rapid/press-release_IP-18-2841_en.htm

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