New aidEndedHousing taxNational

Tax credit for energy-saving and renewable energy equipment in the main home

Article 90 of the 2005 Finance Act rewrites Article 200 quater of the General Tax Code and creates an income tax credit for equipment of the main home paid between 1 January 2005 and 31 December 2009: 15% for low-temperature boilers, 25% for condensing boilers, thermal insulation and heating controls, 40% for renewable energy equipment and heat pumps. Eligible spending is capped at €8,000 for a single person and €16,000 for a couple over 2005-2009, plus increases per dependant. The article also excludes large equipment from the reduced VAT rate on works.

Measure originators

InitiatorGVT

Dominique Bussereau

Gouvernement

InitiatorGVT

Nicolas Sarkozy

Gouvernement

Amount

€16,000

Impact on public finances

Costs €360m/yrtotal cost of the scheme · 2005 estimate · State

Source of the estimate: Sénat, rapport général n° 74 (2004-2005), tome III, examen des articles de la seconde partie (article 65) (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 January 2005

Measure impact

Owners and tenants equipping their main home recover 15%, 25% or 40% of the equipment price, even if they pay no income tax (the excess is refunded), from the tax on 2005 income.