Italy introduces new Energy Subsidies

Milan Financial News reported on September 16 that the Italian government increased the amount of subsidies to 14 billion euros in response to the energy crisis.

First, the Italian government proposes to provide public guarantees for companies in crisis due to high water and electricity bills. The companies eligible for the guarantee must be energy-intensive enterprises, and the company’s operating losses are no less than its operating losses from February 1 to December 2022. During the 31st period, 50% of the cost of purchasing natural gas and electricity. The state provides loan guarantees for such enterprises and imposes relevant restrictions on the amount of loans. For enterprises that meet the conditions, banks will provide them with loans at the lowest interest rate.

Second, the tax credit for energy-intensive companies will be extended to the fourth quarter of 2022, and the tax credit rate for energy-intensive companies will be 25% until September 30, which will further benefit SMEs in October and November .

Third, the Italian government plans to provide a subsidy of 150 euros for those with an annual income of less than 20,000 euros.

Source: China Council for the Promotion of International Trade - 2022-09-19