In 2023, the implied tax subsidy rate on R&D expenditures for profitable large firms in Italy was at 0.07. The forecast for 2024 shows an increase to 0.08, marking a year-on-year growth of approximately 14.3%. This trend continues with the rate reaching 0.09 in 2025 and 2026, reflecting a consistent 12.5% annual increase from 2023. By 2027, the rate is projected to rise to 0.1, maintaining upwards momentum through 2028 with a stable forecast. The compound annual growth rate (CAGR) over the five-year period is anticipated to be around 9%.

Future trends to watch for include:

Continuous policy adjustments in Italy that may influence R&D tax subsidies.
Global economic factors that could impact profitability and R&D investments by large firms.
Technological advancements requiring increased R&D expenses potentially altering the subsidy landscape.
Shifts in legislative frameworks at the European Union level affecting local tax incentives.