Italy Tax Agency Clarifies Tax Credits for Investments in Special Economic Zone for Southern Italy

The Italian Revenue Agency Feb. 11 issued Letter No. 32/2026, clarifying tax credits for investments in the Special Economic Zone (SEZ) for Southern Italy. The taxpayer, a company, planned to construct an instrumental building in the SEZ through a leasing agreement in which the leasing company would finance the construction and deliver the asset upon completion. The taxpayer sought clarification on the applicable eligibility requirements for the single SEZ tax credit. Upon review, the Tax Agency clarified that: 1) eligible SEZ investments include purchasing, constructing, or expanding instrumental properties, including when performed through financial leasing; 2) leasing is generally equivalent ...