The return of the energy renovation tax credit for SMEs

This tax credit had been created to enable VSEs/SMEs to carry out energy renovation work on their business premises. Previously applied between October 1, 2020 and December 31, 2021, it was reinstated by the Finance Act for 2023 and now applies to expenditure incurred on tertiary buildings between January 1, 2023 and December 31, 2024.

Conditions for obtaining the "energy renovation work" tax credit

The tax credit for energy-efficient building renovation is available to small and medium-sized businesses in all sectors, subject to income tax or corporation tax, who plan to carry out energy-efficiency work on their premises. The work must be carried out on commercial buildings used for business purposes and completed more than 2 years ago.

Several types of work qualify for this tax break:

  • thermal insulation work (attics, walls, roof terraces, etc.),
  • the installation of a collective solar water heater or a heat pump other than air/air,
  • installation of mechanical ventilation or a heating and ventilation control or programming system.

When all the conditions are met, very small businesses can claim a tax credit corresponding to 30% of the expenditure incurred, excluding VAT, up to a maximum of €25,000.

Reinstated for the 2023-2024 period

Companies carrying out certain types of energy renovation work on their premises between October 1, 2020 and December 31, 2021 had been eligible for a tax credit. This scheme, which was not subsequently renewed, was reinstated by the Finance Act for 2023 for expenditure incurred between January 1, 2023 and December 31, 2024.

It should be noted, however, that very small businesses that have already reached the €25,000 ceiling for expenditure incurred in 2020-2021 are not eligible for the tax credit for expenditure incurred in 2023-2024.

Eligible companies must complete and electronically transmit form 2069-RCI-SD (CERFA no. 15252) at the same time as their annual income tax return. In principle, for companies whose financial year coincides with the calendar year, the form must be filed on the second day following May 1st. In the case of teletransmission, an additional 15 days apply.

Sole traders subject to income tax must report the amount of their tax credit on declaration no. 2042-C-PRO (CERFA no. 11222).

To help you keep your accounts under control, we recommend that you call on the services of an expert. This is an ideal solution for VSEs and SMEs who don't have the time or skills to carry out these declaratory formalities on their own.