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3. Home Energy Conservation in France
3.1. Tax Credits in France for Home Energy ConservationA French 'tax credit' is available for heating and energy saving works to your French home. A 'tax credit' needs to be distinguished from 'tax relief'. Whilst the latter offers only a reduction in the amount of income tax payable, a 'tax credit' entitles you to a payment by the tax authority. Accordingly, if are eligible to receive a greater sum than you actually pay in tax, then the taxman will send you a cheque for the balance! The allowance is called crédit d’impôt development durable. It is available to anyone who occupies a property in France as their principal home, so it is not available to second home owners. Since January 2009, landlords of unfurnished accommodation are also eligible, provided the tenant (who must not be a member of their family) occupies the property as their principle home, and the landlord lets the property for at least 5 years. The eligible works includes most types of home energy conservation, provided the installation meets agreed performance standards. You need to discuss these standards with your installer to make sure the works comply with the regulations. In most cases, the tax credit is only available for the costs of the materials, and only then provided they are purchased and installed by a registered artisan or company. There is one important exception to this rule, which is applicable for all work carried out since January 2009. This relates to the installation of roof and wall thermal insulation, for which the tax credit can cover 25% of the labour cost, provided the project is undertaken in its entirety by a registered builder. In no case would you be eligible for the tax credit if you purchased the materials yourself, or you undertook the installation works. All types of residential property are eligible for the tax credit, although in relation to thermal insulation and condensing boilers the property must be at least two years old. The main works for which the tax credit is granted, and the percentage rebate that applies are:
The level of the tax credit is increased to 40% where the works are carried out by 31st Dec of the second year of acquisition of a property built before 1977. With effect from 2010 the rate for wood and organic heating installation reduces to 25%, although it remains at 40% if undertaken within two years of property purchase. Air-air heat pumps and low condensation boilers have been removed from the list of eligible works for 2009, although you can still claim a tax credit on these works if you accepted an estimate and made a down payment in 2008, and paid in full for the work in 2009. There is other small print in the regulations, not all of which we can go into here. In particular, the cost of some ancillary items relating to the these works is not always an eligible cost, so you may not be able to charge the full cost of the installation, materials or equipment to the tax credit. Likewise, if you install thermal insulation in an attic space in order to create new living space, you will not be eligible for the tax credit. If in doubt (and the regulations are quite complex), you should contact your local energy efficiency office, the ADEME. There are maximum limits on the level of the tax credit that can be granted, although these are quite generous. Thus, the maximum for one person is €8000, and €16,000 for a couple, which is increased by €400 for each additional person in the household. The allowance can be received over a five year period to 2012. No means testing is carried out. Nevertheless, on a positive note, these tax credits are also available with an interest free mortgage for energy conservation. Thus, not only is it possible to obtain free capital for the works, but you can also receive a reduction in your French income tax, or a payment to you from the French tax authority! At the present time, the tax credit is available until 2012 but we would anticipate the concession will be extended, albeit that there may well be further changes in the regulations. In order to claim the tax credit, you need to send in the invoice from the builder with your tax return. Accordingly, you may not receive your tax credit for a year or more after you carried out the works, so you need to be budget accordingly. 3.2. Eco GrantA grant of between 20% and 35% of the cost of works of home energy conservation is available, subject to a test of resources. In addition to the grant, you are also eligible for the tax credit mentioned above of between 25%/50%, meaning that a substantial part of the cost of the works are effectively grant aided! The tax credit is calculated on your net costs, after deduction of any grant you have received. The works can include loft insulation, and other types of work as listed above. Eligible properties are those over 15 years old. You will be required to have a thermal survey of your property undertaken, but this survey is also grant aided on the same basis as the works. You need to make application to your local office of ANAH, the French home improvement agency. 3.3. Interest Free French Mortgages for Energy ConservationThere are interest free mortgages available through the high street banks for works of home energy conservation.
3.4. Local French Council AssistanceThere are a surprising number of local, departmental, or regional councils who offer grants or loans towards energy saving equipment, notably towards the installation of solar panels. Check with your local mairie in the first instance, or the web site of your conseil régional. Even though a grant may be available, any tax credit you receive will be reduced by the level of the grant you receive. Next: Elderly/Disabled Adaptations Back: Financial Assistance for Property Renovation in France - Index Couldn't find what you are looking for? Search again now!! The IFP Guides are published for general information only. Please visit our Disclaimer for full details. |
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