Taxation

Reactivation of the tax credit for building energy retrofit expenses

Publié le null - Directorate for Legal and Administrative Information (Prime Minister)

Previously applied between 1er october 2020 and december 31, 2021, the tax credit for energy renovation expenses of tertiary-use buildings was reinstated by the 2023 budget. This tax credit is reserved for small and medium-sized businesses. It shall apply to expenditure incurred between 1er January 2023 and December 31, 2024.

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Image 1Crédits: © NVB Stocker - stock.adobe.com

The 2023 budget reactivated the tax credit for tertiary-use buildings' energy renovation expenses incurred by SMB between 1er January 2023 and December 31, 2024. The buildings concerned must therefore be used for the company's industrial, commercial, craft, liberal or agricultural activities.

Tax credit amount and limit

The tax credit is equal to 30% of the non-tax amount of expenses incurred.

The total amount of tax credit available to a company is capped at €25,000.

Please note

If a company has already reached this limit for expenses incurred between 1er october 2020 and december 31, 2021, she will not be eligible for the tax credit for expenses incurred between the firster January 2023 and December 31, 2024.

Eligible expenditure

The tax credit applies to energy retrofit expenses incurred between 1er January 2023 and December 31, 2024. These buildings must have been completed more than 2 years before the start date of the work.

Eligible expenditure must relate to the connection to a heating or cooling network or the acquisition and installation of:

  • a system of thermal insulation by crawling roofs or attic ceilings;
  • a system of thermal insulation on walls, facade or pinion, from the inside or from the outside;
  • a thermal insulation system with a roofing terrace or a slope of less than 5 %;
  • a collective solar water heater or a collective solar device for the production of domestic hot water;
  • a heat pump, other than air/air, the essential purpose of which is to provide space heating;
  • a single-flow or double-flow mechanical ventilation system;
  • a biomass boiler;
  • a system for regulating or programming heating and ventilation;
  • a roof or roofing components allowing the reduction of solar energy, where the expenditure relates to a building located in Reunion, French Guiana, Martinique, Guadeloupe or Mayotte;
  • protection of fixed or mobile bays against solar radiation, where the expenditure relates to a building situated in Reunion, French Guiana, Martinique, Guadeloupe or Mayotte;
  • a fixed air-conditioner of Class A or of a class higher than A, to replace an existing air-conditioner, where the expenditure relates to a building located in Reunion, French Guiana, Martinique, Guadeloupe or Mayotte.

Cumulatively with this scope, the work must be carried out by professionals and complete the criteria set out in the order of 29 december 2020 relating to equipment, materials and appliances the acquisition and installation of which in a tertiary premises qualify for the tax credit for the energy renovation of small and medium-sized companies provided for in article 27 of law n°2020-1721 of 29 december 2020 of finance for 2021.

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