5. Calculating Your French Income Tax Liability

1. 5.1. Composition of Your Household
   5.2. French Income Tax Rates
   5.3. French Tax Allowances
   5.4. French Tax Credits

5.4. French Income Tax Credits

The standard tax breaks in France take the form of either tax relief (réduction d’impôt), or a tax credit (crédit d’impôt).

1. 5.4.1. Home Energy Conservation
2. 5.4.2. Home Adaptations
3. 5.4.4. Child Care

5.4.1. Home Energy Conservation

An allowance ranging from 15% to 50% for the installation of certain energy conservation works in the family home. It may be an existing property, or one to be constructed, but second homes are not eligible.

The allowance is called crédit d’impôt development durable.

Hitherto, only the material costs have been eligible, but since 1st January 2009, in the case of solar glazing and thermal insulation installation costs can also now be charged.

However, the tax credit is only available if the work is carried out by a professional tradesman, so DIY schemes are not eligible.

The measures for schemes carried out in 2008 include low temperature boilers (15%), insulation and double glazing (25%), wall insulation (25%), rainwater harvesting systems (25%), heat pumps (50%), solar energy (50%), and wood burning stoves (50%). Certain of these percentages are increased if the works are carried out on an older property within two years of purchase.

Low temperature boilers and 'air-air' heat pumps have been removed from the list of eligible works for 2009.

The maximum eligible costs are €8000 per person, or €16,000 for a couple.

5.4.2. Home Adaptations

An allowance of between 15% and 25% against the cost of specific works to give greater mobility or safety to elderly or disabled persons in the home.

The allowance is called crédit d’impôt l’aide à la personne.

As with home energy conservation works, labour costs are not eligible. The maximum eligible costs are €5000 for a single person, which is doubled for a couple.

5.4.3. Child Care

An allowance of 50% up to a maximum of €2300 per child under 7 years of age towards the costs of child care outside of the home, called les frais de garde d’enfants.

Only those costs actually incurred by you are eligible, so if you receive assistance from your employer, or the social security system, the allowance is only available on costs net of this assistance.

No allowance is payable where the child is attending a maternity school.