European Commission Approves Italian State Aid Tax Credit Regime for Regional Special Economic Zone Investments

The European Commission (EC) July 25 issued State Aid Case Decision No. SA.117826, approving the further extension of the Italian state aid tax credit regime for regional investments in Southern Italy and Special Economic Zones. The decision includes measures to: 1) extend the regime’s current sunset date to Dec. 31, 2025, from Dec. 31, 2024; 2) increase the regime’s average annual budget to 2.2 billion euros (US$2.5 billion) from approximately 1.6 billion euros (US$1.8 billion); 3) specify that eligible costs are related to the period of Jan. 1 to Nov. 15; and 4) require a new information sheet and evaluation ...