Sustainable development – which tax credits?

In 2012, you will still be able to benefit from tax assistance if you do some work aimed at improving the energy performance of your home. Wishing to reduce the deficit to 4.5% of GDP next year, then to 3% in 2013, the 2012 finance bill presents an evolution concerning tax exemption measures “energy”. With, in particular, the return of the cumulative zero-rate eco-loan and the tax credit that could favor your projects.

The tax credit is a tax provision that allows you to deduct from your income tax part of the expenses incurred for certain energy improvement works relating to your main residence. Since its creation in 2005, it has promoted the renovation of 4.2 million main residences. First good news: The 2012 finance bill provides for an extension of the measure until December 31, 2015.


An extension of the “Energy” tax assistance to work packages

credit loan

Among the positive points, we note that the 2012 finance bill proposes an improvement in assistance for households that will undertake several renovations in their housing. The tax boost can be increased to 50% for work packages against the 13% to 45% currently granted depending on the nature of the equipment. Individuals will nevertheless have to carry out several works if they wish to benefit from tax assistance. So the owner who would like to insulate his roof will also have to insulate the walls and pipes (insulation) to take advantage of the tax subsidy.


On certain works, at 10% reduction in subsidy rates

loan rates

With the new finance law, in return for the enlargement of tax assistance for “energy”, certain equipment that benefited from the tax credit will be excluded from the system (such as double glazing work if it is not accompanied by other improvements or renovations to exterior joinery). Certain subsidy rates will also be reduced by 10%. In addition, the tax advantage granted for the installation of photovoltaic panels will drop from 22% today to 20% in 2012.


The return of the cumulative zero-rate eco-loan and the Sustainable Development tax credit

loan rates

Authorized from 2008 to 2010, the cumulation of the zero-rate eco-loan and the sustainable development tax credit will be restored. This arrangement will nevertheless be reserved for households whose resources do not exceed 30,000 dollars per year. For individuals who exceed this resource ceiling, they will have to choose between the tax credit or the eco PTZ. The duration of repayment of this interest-free loan is also revised upwards, from 10 years to 15 years in 2012.



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