New aidEndedIncome taxNational

€1,500 tax credit for moving more than 200 km to take up a job

Article 11 of the 2006 Finance Act creates Article 200 duodecies of the General Tax Code: a €1,500 tax credit is granted to people who change their main residence to take up a salaried job started between 1 July 2005 and 31 December 2007, lasting at least six consecutive months, where the new home is more than 200 km from the previous one. The beneficiary must have been a jobseeker or a recipient of a minimum social benefit (RMI, ASS, API, AAH, integration allowance, etc.) during the previous twelve months, or have taken the job after an economic dismissal. The credit is granted once, for the year in which the six-month period ends, and any amount exceeding the tax due is refunded.

Measure originators

InitiatorGVT

Thierry Breton

Gouvernement

InitiatorGVT

Jean-François Copé

Gouvernement

Amount

€1,500

Impact on public finances

Costs €50m/yr2006 estimate · State

Source of the estimate: Sénat, rapport n° 115 (2006-2007) de M. Philippe Marini, examen de l'article 27 sexies du projet de loi de finances rectificative pour 2006 (citant le tome II de l'« Évaluation des voies et moyens ») (Indirect official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date

1 July 2005

Measure impact

A long-term jobseeker or minimum-benefit recipient who moves more than 200 km for a job of at least six months receives €1,500, even if not liable to tax.