Tax Credit for Sustainable Development

Country / jurisdiction: France · Year: 1996 · Status: In force · Level: National · Type: Voluntary

Le crédit d'impôt développement durable (CIDD), the Sustainable Development Tax Credit, encourages individuals to make energy efficiency improvements to their homes. It does so by supporting emerging technologies which are most effective in terms of sustainable development as well as increasing market-wide performance standards. This measure aims at wide dissemination of sustainable energy practices to help achieve France ambitious energy conservation, sustainability, and renewable resource goals. It is part of the strategy outlined in the Grenelle Environment Objectives to reduce greenhouse gas emissions to ¼ their current level by 2050 as well as a 38% reduction of building energy consumption by 2020 and an increase in renewable energy use to 23% of final energy consumption by 2020. Only updates to existing buildings are eligible, and with the commencement of the new thermal regulations, "RT 2012" in 2013, no works in buildings constructed after 1 January 2011 will qualify. The tax credit covers the cost of equipment and materials; the cost of labour is only covered in special cases. The amount of expenses eligible for the tax credit is  €8000 for a single person and  €16000 for a couple filing jointly. This amount may then be increased by  €400 per dependent. Since January 1 2012, the tax credit can be combined with the Eco-Interest Loan, but the amount of the household income tax must not exceed  € 30000.Eligible equipment and materials are:

1. Heating equipment and/or its regulating apparatus

2. Insulation materials

3. Equipment using renewable energy

5. Heat pumps other than air/air whose essential purpose is to produce heat or hot water;

6. Equipment to connect to heat networks powered by renewable energy or cogeneration facilities

7. Micro-cogeneration gas boilers

CIDD has helped modernize 4.2 million homes in four years, two thirds of which were built before 1975. In 2009 approximately 700,000 homes were equipped with renewable energy. To limit the fiscal cost, CIDD is adaptive and provides funding for equipment based on performance and efficiency criteria.

Official source: http://www.developpement-durable.gouv.fr/Le-credit-d-impot-developpement.html