Mortgage interest tax credit for the main residence: energy performance requirement and 40% rate for low-energy homes

Article 103 of the 2009 Finance Act amends the tax credit on interest paid on loans taken out to buy or build the main residence (Article 200 quaterdecies of the General Tax Code). For new homes, the credit is conditional on meeting the regulatory thermal and energy performance standards, for building permits applied for from the entry into force of the implementing decree and no later than 1 January 2010. When the new home exceeds regulatory energy performance (low-energy building), the credit rate rises to 40% and applies to interest on the first seven annual repayments instead of five, for homes acquired from 1 January 2009.