I was asked recently if a newly installed electric central heating system would qualify for a tax credit, or crédit d’impot.  The answer unfortunately, in the most part, was no.  The credit d’impot was created in 2005 to encourage long-term development, energy economy and reduce emissions contributing to the ‘greenhouse effect’.  The types of equipment that are covered include airothermic/geothermic heat pumps, reversible air-conditioning systems, some insulating material and certain items for the control and regulation of heating systems. 

The last group could be part of an electrical heating system, providing the devices regulate the heating from a central point and manage the energy consumed by the heating appliances.  These items attract a tax credit of 25% or 40% if they are installed in a house constructed before 1 January 1977.  By contrast, the rate of tax credit for heat pumps installed since 1 January 2006 is 50%. However, to be eligible the heat pump must have a coefficient of performance of equal to or greater than 3.3.  This is its efficiency rating and means that for 1kW of energy consumed there must be 3.3 kW of energy produced.  The tax credit (in the form of a cheque) is available for installations at a principle residence carried out by a recognised firm/installer, so it is not available on DIY installations, and is only applicable on the price for the equipment.  The maximum amount which can be claimed against is 8000 € for an individual or 16000 € for a couple.