Tax credit for energy transition

Country / jurisdiction: France · Year: 2005 · Status: In force · Level: National · Type: Voluntary

In 2005, the government recalibrated the tax credits for purchases of equipment for primary residences (Article 200 of the General Tax Code) to promote both sustainable development and energy conservation.

Specifications regarding equipment covered were modified in 2006 and 2007, to account for technological change. These were modified again in 2009, when the credit was extended to 31 December 2012 (from end of 2009). To be eligible for the tax credits the building in which the equipment is used must be a primary residence and at least two years old; for renewable energy equipment the building can be new or old.

Since the 1st of January 2016, the tax credit mechanism has been simplified and the tax credit is set at -30% for eligible equipment. The tax credit can cover purchase of boilers with a high energy efficiency rate, thermal insulation works, heating regulation devices, heat pumps, charging points for electric vehicles, etc.

The tax credit is limited to EUR 8000 per person, EUR 16 000 for a couple and EUR 400 for each additional dependent.

Since 2005 and the Programme Law setting the directions of the energy policy (POPE), private individuals have been able to benefit from a tax credit for the purchase of the most efficient materials or equipment in terms of saving energy or generating renewable energy. From 1st January 2015, the CITE will be subject to an eco-conditionality criterion: the work must be performed by installers that hold the quality sign "recognised Grenelle de l 'environnement".

Between 2005 and 2011, over 6 million of the 34 million primary residences in metropolitan France benefited from the CITE at least once.

Official source: https://www.legifrance.gouv.fr/affichCodeArticle.do;jsessionid=04A2E85A64F5CFACA3DCFDB5A62470EC.tpdila14v_2?idArticle=LEGIARTI000031781854&cidTexte=LEGITEXT0000