Sustainable development tax credit: rate raised to 50% for renewable energy and heat pumps

Article 83 of the 2006 Finance Act amends the tax credit for main-residence equipment promoting energy savings and sustainable development (Article 200 quater of the General Tax Code). The rate rises from 40% to 50% for renewable energy equipment and heat pumps, and from 25% to 40% for condensing boilers, thermal insulation materials and heating controls installed in a dwelling completed before 1977 and acquired less than two years earlier. The credit is extended, at 25%, to connection equipment for a heating network mainly supplied by renewable or recovered energy. These rules apply from the taxation of 2006 income, i.e. tax paid in 2007. The rates were later reduced from 2009-2010, and the scheme was replaced by the energy transition tax credit.