Invitalia supports strategic and innovative programmes of significant size, including attracting inward investment with the aim of boosting Italy’s production structure. The Development Contract promotes programmes in the areas of industry, tourism, and environmental protection. The Development Contract is applied in the areas covered by regional State aid. In rest of Italy, it is only applied in programmes for environmental protection or investments proposed by small and medium-sized enterprises.
What is Development Contract
Through the Development Contract, Invitalia supports large investments in the sectors of industry, tourism and environmental protection.
The total minimum investment required is 20 million euro. For businesses that process and sell agricultural products, this is reduced to 7.5 million euro.
Who is it targeted at?
The Development Contract is targeted at Italian and foreign companies. The recipients of the subsidies are:
- the applying company who promotes the entrepreneurial initiative is responsible for the technical and economic compliance of the Contract
- any member companies that implement investment projects under the Development Contract
- the participants in any research, development and innovation projects
- the applying company is the formal point of contact for Invitalia, including on behalf of member companies
The Development Contract may also be jointly carried out by multiple parties with the network contract (Law 33 of 9 April 2009). In this case, the specially appointed joint body acts as the representative of the Development Contract participants and shall take on all obligations towards Invitalia.
What does it fund?
The development Programme covered by the Development Contract may be in the area of industry, tourism or environmental protection. It is made up of one or more investment projects and any research, development, and innovation projects, which are interconnected and work together. It may also include the construction of public utility infrastructure.
The Development Contract includes the following financial benefits:
- non-repayable grant towards facilities
- non-repayable grant towards expenses
- subsidised financing
- interest subsidy
The incentives depend on the type of project, the location of the initiative, and the size of the company. The incentives are different for environmental projects.