The National Recovery and Resilience Plan (PNRR) and the implementation of support measures for the tourism sector – Law Decree of 6.11.2021, no. 152 22 November 2021 – Posted in: News – Tags: , ,

By the lawyers Mr. Augusto Vacca and Mrs. Silvia Sulli

On 6 November 2021, Law Decree No. 152/2021, approved on the same date by the Council of Ministers in order to achieve some of the most significant objectives set out in the National Recovery and Resilience Plan (PNRR), was published in the Official Journal of the Italian Republic (Gazzetta Ufficiale della Repubblica Italiana).

The Law Decree entered into force on 7 November 2021.

Articles 1 to 4 set out the long-awaited support measures for the tourism sector, one of the most affected by the Covid-19 pandemic.

The main features of these measures are summarised below, although they may still be subject to partial changes during the parliamentary process of converting said Law Decree into law.

  1. Measures in favour of tourism enterprises – the target group of potential beneficiaries

Law Decree No. 152/2021 regulates three different facilitation measures for the revitalization of the tourism sector:

  1. a non-repayable contribution and a further contribution in the form of a tax credit implementing of the project line “Improvement of accommodation infrastructure through tax credit”, provided for by Measure M1C3 – Investment 4.2.1 of the PNRR (Article 1);
  2. the granting of guarantees on favorable terms for loans intended for the tourism sector implementing the project line “Support for the creation and consolidation of tourism SMEs (Special “tourism” section of the SMEs Guarantee Fund)”, provided for by Measure M1C3 – Investment 4.2.4 of the PNRR (Article 2);
  3. a direct contribution for expenses and granting of soft loans implementing the project line “Revolving companies fund for the support to companies and development investments”, provided for by Measure M1C3 – Investment 4.2.5 of the PNRR (Article 3).

Potential beneficiaries include:

  • hotel enterprises;
  • establishments carrying out agro-tourism activities;
  • open-air facilities;
  • companies in the tourism, leisure, trade fair and conference sector;
  • bathing establishments, spa complexes, marinas and theme parks.

The measure referred to in point B) above may also concern “young persons up to 35 years of age that intend to start up an activity in the tourism sector” [Article 2(1)], even if they have not yet set up any type of enterprise for this purpose.

Let’s take a look at the characteristics of each of these measures at a glance.

1.2 Non-repayable contribution and tax credit

The non-repayable contribution and the tax credit are provided in relation to the expenses actually incurred, including the design service, for one or more of the following interventions, provided that they are carried out in the period between 7 November 2021 and 31 December 2024:

(i) interventions to increase the energy efficiency of structures and anti-seismic upgrading;

(ii) interventions to remove architectural barriers;

(iii) building work necessary for the implementation of the measures referred to in points (i) and (ii) above;

(iv) construction of thermal swimming pools and acquisition of facilities and equipment for carrying out thermal activities;

(v) digitization expenditure.

The non-repayable contribution may not exceed 50% of the expenses incurred and, in any case, the limit of € 40,000, which may be increased up to a maximum of € 100,000 as follows:

  • up to further € 30,000 if the project or projects include at least 15% of expenditure on digitization as well as technological and energy-related innovation in facilities;
  • up to further € 20,000, if the beneficiary company meets the requirements laid down by law (Article 53 of Legislative Decree no. 198 of 11 April 2006) for female entrepreneurship or if it is mainly owned and managed by young people, e. “persons aged between 18 and 35 years at the date of submission of the application”;
  • up to further €10,000 if the beneficiary company has its operational headquarters in one of the following regions of central-southern Italy: Abruzzo, Basilicata, Calabria, Campania, Molise, Apulia, Sardinia and Sicily.

The maximum amount of the non-repayable contribution is paid in a single instalment on completion of the project, without prejudice to the right to request an advance of up to 30% against the presentation of a suitable guarantee.

The tax credit may only be used as a set-off starting from the year following the year in which the intervention was carried out; it is transferable to third parties in whole or in part with the possibility of subsequent transfer to banks and financial intermediaries and can reach up to 80% of the eligible expenses.

The tax credit and the non-repayable contribution:

  • may be combined with each other provided that such combination does not lead to the cost of the measures being exceeded, but may not be “combined with other public contributions, grants and subsidies granted for the same measures”;
  • are granted until the available resources are exhausted, according to the chronological order of applications;
  • are entitled to be granted in accordance with the conditions and limits laid down by the so-called “de minimis” regime (see EU Regulation No 1407/2013 of 18 December 2013 of the European Commission on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union, as amended by the Communication of 19 March 2020, C (2020) 1863 on the “Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak”).

For the part of the eligible expenses not covered by the tax credit and the non-repayable contribution, it is also possible to benefit from the soft loans of the so-called “National Fund for Energy Efficiency” (see decree of the Minister of Economic Development and the Minister of the Environment and the Protection of Land and Sea of 22.12.2017), provided that at least 50% of such expenses “is dedicated to energy requalification interventions”.

Within 30 days as of the entry into force of Law Decree no. 152/2021, the Ministry of Tourism shall have to publish a notice containing the application procedures for the disbursement of the incentives in question.

1.3 Guarantees for financing in the tourism sector

A ‘Tourism Special Section’ is to be set up within the “Guarantee Fund for small and medium-sized enterprises” to provide guarantees in support of loans for “energy requalification and digital innovation”.

Beneficiary companies with no more than 499 employees and young people up to 35 years of age wishing to start up a business in the tourism sector are eligible to apply for the guarantee.

The guarantee is granted free of charge and the maximum amount guaranteed per individual beneficiary company is EUR 5 million.

The percentage of cover of the direct guarantee is determined pursuant to the emergency legislation (see Article 13, paragraph 1, Law Decree No. 23 of 8 April 2020, converted with amendments into Law No. 23 of 5 June 2020) and, after the expiry of such legislation, is set at a maximum of 70% of the amount of each transaction, which may be increased up to 80% under certain conditions.

The guarantee may also be requested by beneficiary companies that have problematic exposures to the banking system, as well as for debt rescheduling operations of the beneficiary company, provided that the new financing foresees the provision of additional credit equal to at least 25% of the existing debt stock.

Without prejudice to the special rules laid down for the “Special Section for Tourism”, Law Decree no. 152/2021 refers to the general rules governing the operation of the ‘Guarantee Fund for Small and Medium-Sized Enterprises’ (Decree no 248 of the Minister for Industry, Trade and Crafts of 31 May 1999).

1.4 Direct contribution for expenses and granting of soft loans

The aforementioned beneficiary companies, including those owning the instrumental buildings in which the activity is carried out, will be granted direct contributions for the costs of energy requalification, environmental sustainability and digital innovation measures for an amount of no less than EUR 500,000 and no more than EUR 10 million, provided they are carried out by 31.12.2025.

The direct contribution for expenses may be granted up to a maximum of 35% of the eligible expenses and costs, with a reserve of 50% dedicated to energy requalification measures.

To cover the portion of investments not covered by the direct contribution for expenses and in combination with it, beneficiary companies may apply to the “Revolving fund for business support and development investments in tourism” for soft loans of up to 15 years, including a maximum grace period of 36 months, also in addition to any bank loans of the same amount and duration, granted at market conditions.

The direct contribution for expenses and the soft loan may not be combined with the facilities described in paragraph 1.2 as well as with any other public contributions, subsidies and facilities granted for the same interventions and, in any case, are due in accordance with the limits provided for by European legislation on the so-called “de minimis” regime and on State aid measures to support the economy in the current COVID-19 outbreak.

Within 60 days as of the entry into force of Law Decree no. 152/2021, the Ministry of Tourism, in agreement with the Ministry of Economy and Finance, must adopt a decree containing the implementing rules and procedures for the granting of the incentives in question.

2 Specific measure for travel agencies and tour operators: tax credit for digitisation

Implementing the project line “Digitisation of Agencies and Tour Operators”, provided for by Measure M1C3 – Investment 4.2.2 of the PNRR, travel agencies and tour operators – with ATECO codes 79.1, 79.11 and 79.12 – may apply, from 7 November 2021 to 31 December 2024, for a contribution in the form of a tax credit amounting to 50% of the costs incurred “for investments and digital development activities” up to a maximum total combined amount of € 25,000.

The tax credit may only be used as compensation from the year following the year in which the measures were carried out and is transferable to third parties, in whole or in part, with the option of subsequent transfer to banks and financial intermediaries.

Also, in this case, as specified by Article 4 of Law Decree no. 152/2021, the limits provided for by European legislation on the so-called “de minimis” regime and on State aid measures to support the economy in the current COVID-19 outbreak apply.

Within 60 days as of the entry into force of Law Decree No. 152/2021, the Ministry of Tourism, in agreement with the Ministry of Economy and Finance, must adopt a decree containing the rules for implementing the measure.