A new tax credit for accelerating Energy Transition

A new tax credit for accelerating Energy Transition has been announced by the Minister of Ecology.
The existing tax credit – originally introduced in 2005 – has seen many changes in the attitudes regarding renewable energy and a change of mentality has resulted in the adoption of new changes to the tax credit system as from 1 September 2014.

The new amendments include:
• The standardisation of rates
• The removal of certain conditions

The adoption of a single rate of 30% tax credit is an incentive compared to the 15% rate that rose to 25% in work packages. This standardisation has eliminated the concept of bunch work, allowing the implementation of the single rate to all individual actions such as loft insulation, condensing boiler installation etc.

Not affected by these changes are thermal insulation and other capital works energy production using a renewable source. This type of work will only be taken into account when it is applied to a principal dwelling.

To measure the importance of these changes, certain points must be taken into consideration – For example, the fact that the provision has not been reviewed by parliament before being implemented. The new conditions are temporary and on December 31, 2015, they shall be new provisions introduced.

The new tax credit is intended through its rates and conditions to encourage homeowners to make efforts towards greener homes. It is hoped that this tax credit does not open the door to ecological scammers.