Real estate and investiments

The tax credit for the main home’s outlays of system
Art. 200 Quarter from the general tax code

This tax credit applies to the income tax

Who can get it?

• Taxpayer living in France
• Home-owners, tenants or free occupiers of the property considered as the main residence
• Lease holder of an empty home as a main residence for at least 5 year for a tenant who is not involved in the household.

The housings affected

Depending on the system type and the date of the property has been purchased, the credit may be valid for accommodations achieved more than 2 years before or for buildings being achieved.
Each year, the dates are updated in the general tax code.

The environmental condition

The outlay is aimed to improve the accommodation’s environment quality.

The outlays and work allowing a tax credit according to the art. 200 quarter from CGI (general tax code)

A more managed heating (art 200 quater a)

Are involved :

• Purchase of condensing boiler
• Purchase of lagging material and heating regulating devices

Amount of tax credit :

• 25% of the price of systems, materials and devices
• 40% for an accommodation achieved before 1977 and for work done within two years after the purchase

The heating production by a renewable energy source

Are involved :

• The heating producing system which promote the heating production using a source for renewable energy
• The heating pumps, other than air/water, the aim of which is the heating production

Amount of the tax credit :

• 50% of the amount of the systems’ price
• 40% for a building achieved before 1977 and for work done within the two years following the buying.

Also involved :

• Boilers and heating or independent boiling water producing systems using wood or other biomasses
• The heating pumps

Amount of the tax credit :

• 40% for the expenses paid in 2009
• 25% for the expenses paid from January 1st 2010

System joining

Are involved :

• The joining systems for a heating system predominantly fed by renewable energy or by a cogeneration plant.
• The systems for worn water salvage and processing

Amount of the tax credit :

• 25% of the price’s system

A best draughtprooging

Are involved :

• The installation of draughtproofing materials on opaque walls

Amount of the tax credit :

• 25% of the expenses
• 40% for a building achieved before 1977 and for work done within 2 years after the purchase.

Carrying out a energetic performance diagnosis

Are involved :

• The carrying out of the energetic performance diagnosis defined by the article L. 134-1 from the code of the construction and the home, apart from the cases where it is required. For a same home, only one energetic performance diagnosis entitles to the tax credit within 5 years.

Amount of the tax credit :

• 50% of the expenses

Terms of the tax credit

Year where the credit is profitable

The tax credit is involved in the tax amount as the year during which the taxpayer has bought or as the year during which the home has been achieved or purchased if it is later.

Limit of the expenses entitle to a credit

For a same home occupied by the tax credit’s recipient: for five successive years from January 1st 2005 to December 31st 2012, the amount of the expenses entitling to the tax credit cannot be higher than

• single/widower/divorcee: 8 000€
• couple with a taxation in common: 16 000€
• each dependant person according to the articles 196 to 196 B: + 400€ (divided by two if this is a dependent child equal to each of his parent)

For a same home offered as a rent by the tax credit’s recipient:
The amount of expenses entitling to the tax credit for the lease holder cannot be higher than 8 000€ for the period between January 1st 2009 to December 31st 2012.
As for the same year, the number of home offered for rent and considered as the expenses entitling to the tax credit is limited to three per contributing household.

The proof of expenses

The systems, materials, devices and installation work have to be mentioned on a company’s bill or on an attestation supplied by the home’s seller or builder. The mentioned expenses of the energetic performance diagnosis have to be included on the bill supplied by a person mentioned in the article L. 271-6 from the code of the constuction and the home. This bill mentions that the energetic performance diagnosis has been carried out regardless of the regulation.

The tax credit is given after the attestation mentioned in the first paragraph or bills, other than advance fee bill, supplied by experts who carried out the energetic performance diagnosis or companies hired to have work done have been submitted.

If the proof (bill) of the expense cannot be submitted or if the proof of the home’s age cannot be submitted, therefore the tax credit will not be granted or the rate will not be increased.

The term of the renting commitment for the tax credit’s recipient lease holder

The term of the renting commitment (5 years) starts from the date of the expenses or, when the home is not rent by this date, from the date the involved home is offered for rent with an effect within twelve months after the expenses have been done.
If this commitment is not respected, the tax credit(s) granted for each home affected are cancelled within the year the commitment is not respected.

The repayment of the tax credit

The tax credit is deduced from the income tax after the tax reductions mentioned in the articles 199 quater B to 200 bis from the general tax code, the tax credits and the debits or deductions which are not in full discharge have been deduced. If it is higher than the tax due, the excess is returned.

When the tax credit’s recipient got refund within five years of the total or a part of the amount of the expenses which has entitled to this advantage, it is the subject, within the repayment year and in the limit of the granted tax credit, of a return equal to 15%, 25%, 40% or 50% of the refund amount according to the tax credit rate which is applied. However, no return is allowed when the repayment is following a disaster occurring after the expenses have been paid.

Pay attention ! This article is a summary of the arrangements stipulated by the general tax code. Therefore, before getting started with work, find out more by speaking with your fiscal adviser or at your tax center in order to ensure that you are able to receive the tax credit.

Download the list of the systems.