Grants and Tax Breaks for Home Energy Conservation
Wednesday 05 February 2014
There are significant changes this year to the tax credits and grants for works of energy conservation to the main home.
A tax credit, called the Crédit d’Impôt Développement Durable (CIDD), is available for energy conservation works to the principal home.
This tax credit comes in the form of a grant for those who do not pay income tax, or whose income tax bill is less than the amount of the tax credit.
Nevertheless, it is becoming more difficult to obtain access to this support, as the government continues to toughen the technical requirements, reduces the range of eligible works and the amount of financial assistance that is granted.
For 2014 the government have removed from the list of eligible works the installation of solar panels and rainwater harvesting systems.
In addition, the 10 different levels of tax credit previously available have been replaced by two rates - 15% and 25%.
The first lower rate of 15% is only available to those on modest incomes, while the second higher rate of 25%, although not subject to a test of resources, is conditional on at least two elements of energy conservation works - bouquet de travaux - being carried out.
In addition to tax credits there are two small grants that are available on a means tested basis.
These grants are called prime à la rénovation, amounting to either for €1,350 or €3,000, depending on a test of resources.
Covering several types of work, such as insulation and improved heating, the government has stated that around two-thirds of all households should be eligible for at least one of the grants.
The conditions of eligibility are not quite the same for each grant, with different income thresholds and works.
You can read more in our guide below.
Interest Free Loans
An interest free 'eco' loan of up to €30,000 is available. No test of resources is necessary, unless you also seek the loan alongside the tax credit (CIDD).
A reduced rate of VAT of 5.5% applies to building works of energy conservation, reduced 2014 from the previous intermediate rate of 7%.
The rate will also apply to associated works carried out with works of energy conservation.
However, only those elements eligible for the tax credit (CIDD) are entitled to this lower rate, which does include repair and maintenance.
Local Rates Exemption
A full or partial exemption against the taxe foncière for up to 5 years is available in certain areas, both for energy conservation to existing homes and to those new homes constructed to an energy efficiency standard that is higher than the regulations currently in force.
The eligible works are broadly those that also qualify for the tax credit.
You might be best advised to discuss all of these aides with an official adviser, which you can do by ringing 0810140240 (France), or visit the local office of your Point rénovation info service.