Edited by the Team Tax Incentives & Grants

The Ministry of Enterprises and Made in Italy supports, through dedicated incentives, the automotive supply-chain companies planning investments in production, innovation, research and development, and competitiveness. More than 70% of the Automotive Fund’s total resources will be allocated to measures that strengthen the competitiveness and technological transformation of the supply chain.

In this context, two measures are dedicated to the sector: the Automotive Mini-Development Contracts (“Mini-contratti di sviluppo”) and the Innovation Agreements for the Automotive Supply Chain.

The incentives are available to companies engaged in the research and development, design, engineering, production, assembly, processing, remanufacturing or advanced maintenance of motor vehicles for the civil and commercial road transport of people and goods, as well as related components, systems, subsystems and technologies. Activities in the aeronautical, rail and maritime sectors are excluded, as are companies engaged exclusively in marketing, distribution, brokerage, rental or resale.

Automotive Mini-Development Contracts: EUR 300 million for the green transition and mobility of the future

The measure has an overall financial allocation of €300 million and aims to support investments by companies in the sector as part of the green transition, the development of advanced technologies and the deployment of solutions for sustainable, autonomous, connected, smart and safe mobility, in line with European decarbonization objectives.

The allocation is designed to promote SME participation and a more balanced geographical distribution across the sector. In particular:

• 60% of the resources is reserved for initiatives proposed by SMEs, of which 25% is allocated to micro and small enterprises;
• 40% of the resources is reserved for programmes to be implemented in Southern Italy;
• additional set-asides of 10% are provided for companies holding a legality rating and for those with gender equality certification, respectively.

Eligible beneficiaries

Companies of any size operating in the automotive supply chain, including SMEs and large enterprises, may apply provided that they implement investment programmes in Italy. Projects may be submitted jointly by up to five companies, with each participant making a minimum investment of EUR 1.5 million.

Eligible measures

Eligible industrial development projects include the construction of new production units, the expansion of existing production capacity, production conversion, the restructuring and innovation of production processes, and the acquisition of existing plants or production units. These projects may be complemented by industrial research, experimental development and staff training activities, up to 10% of the production investment programme. 

Project activities must relate to one of the following areas:

• development, engineering, testing and production of new vehicles and mobility solutions;
• low-emission power supply and propulsion systems;
• development of parts, components, systems and advanced technologies for sustainable, autonomous, connected, smart and safe mobility;
• diversification and industrial conversion towards strategic, R&D-intensive technologies.

Incentives

The incentives will be granted in the form of a non-repayable grant and a concessional loan. The intensity will be determined according to the type of investment, the size of the undertaking and the area where the project is implemented, in compliance with the ceilings laid down by EU State aid rules, within the schemes provided for by the GBER Regulation and, where applicable, by the de minimis Regulation. Overall coverage may reach up to 75% of eligible costs.

Submission of applications

The operating procedures and the opening dates of the application window have not yet been defined and will be set by a subsequent MIMIT Director-General’s decree.

Innovation Agreements for the Automotive Supply Chain: EUR 631.02 million for research and development

The measure allocates EUR 631.02 million for the 2026–2030 period to support major research and development projects across the automotive supply chain. The Director-General’s decree of September 17, 2026 established the application deadlines and procedures.

Eligible beneficiaries

Companies of any size may submit projects individually or jointly, with no more than five applicants participating in a joint proposal. Each applicant must have at least two approved financial statements.

Eligible measures and expenses

Projects must include investments between €5,000,000 and €40,000,000 for industrial research and experimental development activities aimed at creating new products, processes or services, or at significantly improving existing products, processes or services, fostering innovation pathways in the automotive supply chain.

Project activities must relate to one of the following areas:

• development, engineering, testing and production of new vehicles, power supply systems, propulsion systems, batteries and innovative materials;
• development of components, systems and advanced technologies for sustainable, autonomous, connected and intelligent mobility; 
• conversion and production diversification towards strategic, R&D-intensive technologies, including dual-use technologies interoperable with the sustainable mobility sector. 

Eligible costs include those related to in-house and support staff, instruments and equipment, specialist consultancy services, contract research and the acquisition of patents, licences and know-how, as well as technical services, overheads and materials. 

Projects must have a duration between 18 and 36 months and be started after the submission of the application for aid. The possibility of an extension is provided within the limits set by the applicable legislation. 

Incentives

Aid is granted as a direct grant and, where applicable, a subsidised loan. The maximum aid intensities are: 

• 50% of eligible industrial research costs;
• 25% of eligible experimental development costs.

The subsidised loan, if requested, may cover up to 20% of the project’s eligible costs. The measure is implemented in compliance with Regulation (EU) No 651/2014 – GBER. The incentives may not be combined, for the same expenses, with other State aid or with aid granted under the de minimis scheme. 

Submission of applications

• Guided completion will be available from November 11, 2026. 
• Applications may be submitted from November 25, 2026 until the available resources are exhausted. 

The two measures represent important opportunities for companies in the automotive supply chain that intend to make strategic investments in innovation, production development, research and competitiveness. In view of the different activation timelines, it is advisable to begin preliminary assessments and prepare the investment programs.

The Tax Incentives & Grants Team is available to provide further information and support companies in assessing eligibility requirements and preparing applications.