Sustainable development tax credit recalibrated: lower rates for heat pumps and biomass

Article 58 of the third amending finance act for 2009 revises Article 200 quater of the General Tax Code for expenses paid from 1 January 2010. The rate is 15% for the boilers listed in 1° and glazed wall insulation, and 25% for opaque wall insulation and heating controls. Non-geothermal heat pumps fall from 40% to 25%; geothermal heat pumps remain at 40%, as do the installation of their underground heat exchanger and thermodynamic heat pumps. Wood and biomass equipment falls from 40% to 25%, except when replacing old equipment (40%). The general renewable energy rate stays at 50%. The same expense can no longer qualify for both the credit and the tax advantage for employing a home worker (Article 199 sexdecies).