This mechanism makes for greater tax neutrality in the choices of corporate financing, fostering a reinforcement of Italian businesses’ capital structure. The facilitation applies to increases in equity capital with respect to the level at the end of the financial year in course on 31 December 2010.
Given its incremental nature, the measure can couple moderate losses of revenue with powerful incentive effects and enable firms to undertake more innovative and potentially more productive and remunerative investment projects. Consequently it can foster the growth in size of Italian firms and impart impetus to new initiatives.