50% exceptional depreciation of subscriptions to companies securing long-term electricity supply for energy-intensive industries

Article 43 of the 2005 Amending Finance Act creates Article 217 quindecies and Articles 238 bis HV to 238 bis HZ bis of the General Tax Code. Companies may apply, from the year of investment, exceptional depreciation of 50% of the sums paid to subscribe, before 1 January 2007, to the capital of approved companies whose purpose is to conclude electricity supply contracts of at least fifteen years with producers, solely for the sites of their shareholders. Shareholders must be heavy industrial consumers (more than 2.5 kWh per euro of value added) whose sites consume mostly during off-peak hours. Approved capital is capped at €600,000 and no shareholder may hold more than 25%. The scheme applies from 1 January 2006.