Overhaul of the IR-PME tax reduction, with 30% and 50% rates for investments in young innovative companies
The 2024 Finance Act rewrites Article 199 terdecies-0 A of the General Tax Code (18% 'Madelin' or IR-PME reduction) to align it with the EU General Block Exemption Regulation, and creates two regimes for cash subscriptions made between 1 January 2024 and 31 December 2028: a 30% rate for the capital of young innovative companies (Article 199 terdecies-0 A bis) and 50% for those whose research spending is at least 30% of expenses (Article 199 terdecies-0 A ter). Payments count up to €75,000 (single) or €150,000 (couple), and the total benefit cannot exceed €50,000 over the period.
Measure originators
No official estimate found for this measure.
Measure impact
Individuals investing in young innovative companies receive a higher tax reduction. No official estimate of the new rates was published; the Senate report notes that all tax reductions for subscriptions to SME capital were estimated at €155m in 2024. Reporting obligations were set by Decree No. 2024-1128 of 4 December 2024.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle
National Assembly has the final say
Si échec CMP
Debate and vote
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)
Council of Ministers
Validation interne