Italy is entering a new phase in its approach to supporting innovation and industrial investment. For years, the tax credit system – particularly the well-known “Industry 4.0” framework – has been the primary tool to encourage businesses to invest in technology, research and development. However, from 1 January 2026, the landscape changed significantly: tax credits will gradually give way to a new hyper-amortisation regime. At the same time, the R&D, Innovation and Design Tax Credit will remain in place, continuing to play a key role in supporting companies’ innovative activities. So what should businesses expect?