Available from October 1, 2020, the energy renovation tax credit for VSEs/SMEs is part of the post-confinement recovery plan designed to facilitate the recovery of the French economy from the Covid-19 crisis. What is this exceptional scheme all about? Who is it aimed at? Here are the answers.
Which companies are eligible for the premises renovation tax credit?
Announced as part of the "France Relance" plan, the energy renovation tax credit for small and medium-sized businesses is aimed at companies in all sectors, subject to income tax (IR) or corporation tax (IS), that own or rent their premises and have energy efficiency improvement work carried out.
What work is eligible?
The amount of the tax credit is 30% of eligible expenses, up to a maximum of €25,000 per company. The scheme is available for expenditure incurred between October 1, 2020 and December 31, 2021.
Eligible work includes: attic or roof insulation, insulation of walls and flat roofs, installation of a collective solar water heater, a collective biomass boiler or heating and ventilation control systems.
Renovation tax credit: how can you benefit?
To benefit from this aid, companies must declare the expenses incurred during the year concerned in their income tax or corporation tax return. The eligible expenditure base comprises the total amount of expenditure, excluding tax.
For more information on the energy renovation tax credit for VSEs/SMEs, you can contact the FAIRE advisors at faire.gouv.fr. Alternatively, you can visit a local FAIRE center or call the national telephone number, 0 808 800 700.
Why call on a recognized professional to carry out the work?
To qualify for the tax credit, the work must be carried out by a professional recognized as an environmental guarantor (RGE). As a reminder, these craftsmen have undergone training and are committed to respecting a quality charter. Going through their intermediary avoids any disappointment with professionals whose methods do not comply with applicable regulations. Before committing yourself, it's a good idea to request several free quotes for comparison purposes. A directory of professionals is available on the FAIRE website, set up by the French Ministry of Territorial Cohesion and ADEME.
It's important to note that this aid can be combined with other schemes such as energy saving certificates.