Is the energy transition tax credit effective?


The sustainable development tax credit has become the energy transition tax credit. Entered into force, the tax system provides households with a reduction of their income tax on part of the expenses incurred as part of energy improvement works.

More on the Energy Transition Tax Credit

Tax Credit

To benefit from the tax credit for energy transition, you must be a tenant, owner occupying or occupying free of charge and be fiscally domiciled in France. The accommodation must be a single house or apartment, your main residence, and it must be completed for more than 2 years.

In a multi-unit building, the tax credit may relate to the expenditures made for common equipment under the share that corresponds to the dwelling occupied.

It is mandatory that the work be done by the company supplying the materials. And, since January 1, 2015, professionals realizing them must be recognized as RGE (Recognized Guarantors of the environment.

The amount of expenditure qualifying for the tax credit is capped at € 8,000 if it is a single person, and € 16,000 for a couple subject to joint taxation. This sum is to be increased by 400 € per dependent. ISCED is calculated on the basis of the amount of eligible expenditure, after deduction of grants and subsidies received. This means that in case of benefit from other public aid to purchase equipment and materials (General Council, Regional Council, Anah), the calculation is made on the cost of equipment after deduction of aid received.

In order to benefit, the equipment must meet certain technical characteristics.

The tax credit can be combined with the eco-loan at zero rate if the amount of income of year n-2 tax household does not exceed 25,000 € for a single person (single, widow or divorced ), € 35,000 for a couple subject to common taxation and € 7,500 additional per dependent.

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Question administrative step, you must complete a line on your tax return and keep the invoice of the company that provided the equipment and equipment and performed the work. You must be able to deliver it at the request of the administration. In the case of insulation work on the opaque walls, the invoice must mention whether this insulation is made from the inside or the outside. Also, for the purchase of power generation equipment that uses a renewable energy source, it must be specified the area in square meters of equipment that uses solar thermal energy.