The Italian government has unveiled an exciting new initiative to support design innovation across the country. Starting July 7, 2026 businesses can apply for a 10% tax credit on design-related expenses, with a total budget of 60 million euros allocated for the year. This innovative program aims to strengthen Italy’s position as a global leader in creativity and manufacturing excellence.
The Minister of Enterprises and Made in Italy, Adolfo Urso emphasized the strategic importance of this measure: “We are providing businesses with a concrete tool to support creativity, design, and manufacturing capabilities.” This initiative is particularly significant for Italy’s renowned fashion sector which has long been a cornerstone of the country’s economy.
The Mechanics of the Design Tax Credit
The tax credit covers a wide range of design-related expenses, with a maximum benefit of 2 million euros per company. Eligible costs include:
- Personnel costs for employees directly involved in design activities
- Salaries for young graduates under 35 with design degrees, hired on permanent contracts
- Ammortization and lease payments for materials and software used in design projects
- Consulting fees for external design services
- Material costs used in design and prototyping
This comprehensive approach ensures that businesses of all sizes can benefit from the program, with particular advantages for small and medium-sized enterprises in sectors like furniture, fashion, footwear, and jewelry.
Who Can Benefit from This Initiative?
The program is open to all Italian businesses, regardless of size or sector, as long as their design activities contribute to the development of new or significantly improved products. This inclusive approach ensures that a wide range of industries can leverage the tax credit to enhance their competitive edge.
Sectors that stand to gain the most include:
- Furniture and interior design
- Fashion and accessories
- Automotive and mechanical engineering
- Cosmetics and packaging
- Artisan crafts
By investing in design, these industries can create products that are not only aesthetically pleasing but also functional and sustainable, meeting the evolving demands of global markets.
How to Apply for the Tax Credit
Businesses can submit their applications starting at 12:00 PM on July 7, 2026 through a dedicated online platform managed by the Ministry of Enterprises and Made in Italy. The application process requires detailed documentation of eligible expenses and design activities.
Luciano Vazzano territorial secretary of CNA Imperia highlighted the importance of this initiative: “Our businesses have always distinguished themselves through creativity, quality, and innovation. Design is an investment that enhances product value and strengthens competitiveness.”
As global markets increasingly value unique, functional, and sustainable products, Italy’s design tax credit represents a strategic step toward fostering innovation and growth. By supporting creativity and manufacturing excellence, this initiative positions Italian businesses to thrive in an ever-evolving economic landscape.
