Crédit d'impôt (France)

What is this tax credit? 

It is a tax provision allowing households to deduct from their income tax a portion of the expenditure incurred for some retrofits on a principal residence.

What are the conditions to benefit? 

Your situation:  

• You are a tenant, homeowner  or occupant without charge;
• You are tax resident in France;
• You are a landlord and have opted for the tax credit (if you opted for the tax credit for expenses, then you cannot deduct this from your rental income).

Your accommodation:  

• It is a house or apartment;
• This is your principal residence if you are occupying;
• Housing is rented as a principal residence for at least 5 years if you have had a financial grant;
• Housing is completed over two years for insulation work, the control equipment, condensing boilers and implementation of a diagnosis of energy performance. 
• The housing is new or old for the installation of equipment using renewable energy (solar, wind, water, wood), heat pumps and equipment connected to a network of heat.

Special conditions 

• When you replace your heating and / or production of hot water by wood or biomass it has to be more efficient, the rate of 17% is increased to 28%. To receive this higher rate, you must provide an invoice from the installer indicating the coordinates of the scrap metal dealer who has taken over your old equipment and a schedule of monitoring completed by the installer and validated by the scrap yard.
• The work must be performed by the company providing the materials.
• The energy performance may benefit from the tax credit only once over a period of 5 years.

Funding available : 

• The amount of expenses eligible for the tax credit is capped at € 8,000 for a single person and € 16 000 for a couple filing jointly. This amount is increased to 400 € per dependent.
• For donors, it is capped at 8,000 € per unit to a maximum of 3 units per year.
• This ceiling is assessed over a period of five consecutive years between 1 January 2005 and December 31, 2012 .
• The tax credit is calculated on the amount of eligible expenditure, net of grants and subsidies received from elsewhere . So if you have another public aid for the purchase of equipment and materials (the regional council, council, agency), the calculation will be the cost of equipment deductions of aid received.

For which investments and at what rate?  

What technical requirements are there?

To qualify for the tax credit, equipment must meet the conditions obtaining in accordance with tax regulations. You will find below the precise characteristics for each equipment.

• The acquisition of boilers

• The acquisition of control equipment and heating

• The installation of power generation using a renewable energy source

Documents required 

The administrative process is very simple: just fill a line on their tax return and carefully keep the invoice of the company that supplied the materials / equipment and performed the work. Users who subscribe their Internet reporting is provided for sending the invoice. They must be able to produce, on request of the administration. 

For further information please visit http://ecocitoyens.ademe.fr/financer-mon-projet/construction/credit-dimpot-developpement-durable