Crédit d’Impôts – Tax Rebates
Durable Development and Economies in energy

The Finance laws of 2005 created a tax rebate dedicated to the Durable Development and Economies in energy. This measure for domestic purposes is aimed at installations in the principal residency giving the most performance in energy saving as well as equipment that uses renewable energies.

What costs are covered by the measure?

The credit d’impôt relates to the cost of buying certain equipment provided by the company undergoing its installation. This must be billed for with the work by the company.

This covers:
• Heating installations ( low temperature boilers / chaudière à basse temperature and condensation boilers / chaudière à condensation)
• Insulation materials
• Equipment for heat regulation (e.g. thermostats)
• Equipment used for renewable energies (e.g. wood burning stove or boiler, solar panels, wind generated electricity equipment etc.)
• Heat pumps (pompe à chaleur) which is installed for the production of heat
• Equipment for connection to certain networks for heat recuperation, supplied mainly by renewable energies or duel source installations (cogénération)

In which type of lodgement, can the rebatable costs be effectuated?

• The purchase of a low temperature boiler, a condensation boiler, thermal insulation materials and heating control equipment wishing to benefit from a crédit d’impôt of 25% must have been done in principal residencies built over two years before.

For condensation boilers, private or collective, used for the production of heating or hot water, as well as the insulating materials wishing to benefit from a 40% rate, the double condition has to be respected: this equipment has to be installed in a house built before 1/1/1977 and the installation have to be undertaken before the 31st December of the second year after the house purchase.

• The purchase of energy producing equipment using renewable sources of energy or heat pumps for the production of heat has to be done either a new or old principal residency – 50% rebate.

Recuperation and Treatment of Rain Water

The crédit d'impôt for the cost of equipment, principal residencies, to promote the economy of energy and the durable development has been extended to cover cost paid between 1/1/2007 and 31/12/ for purchasing or the installation of equipment for the recuperation of rain water.

Equipment Concerned

The equipment concerned are the equipment for the recuperation of rain water collected from the inaccessible roof guttering, for use exclusively at the exterior of the house (e.g. watering the garden, washing the car).

A ministerial text will come later to specify the conditions under which the use of this water can be extended to use inside the home, which at the moment is excluded. Buried or not, the system must correspond to the following characteristics.

It must have equipment that is:
- watertight ;
- resistant to filling variations ;
- non translucide, i.e. does not let the light through ;

Rates of Tax Rebates

Applicable Rate. The crédit d'impôt is 25 % of the costs, depending on :
- the cost of the rain water recuperation or treatment equipment, when it is installed in a new house or a house under construction;
- or the purchase price of this equipment, when it concerns the cost born in a built property.

Global pluriannual rebate sum . For a taxpayer and the same principal residency , the total sum of costs covered by the crédit d'impôt, acceptable globally for the rain water recuperation and treatment equipment as well as other equipment and materials, cannot the sum of 8 000 € per person single, widowed or divorced or of 16 000 € for a couple or civil partners (pacte civil de solidarité), subject to a communal tax declaration.

These sums go up by 400 € per person at charge. These new dispositions apply to costs paid between 1/1/2007 and 31/12/2009.

What expenses are covered by the crédit d’impôt?

The crédit d’impôt covers the price of the equipment and materials, not the labour. The installations must be made by a professional and billed (or certificate from the seller or constructor of a new house) comporting the appropriate statements required in the legal texts for the fiscal services to be able to accept the dossier

Public Aid

There are a number of organisations that can help finance these projects – the region, the departement, ANAH..... There are also loans, from banks and from the Caisse d’Allocations Familiaies, which are at low or 0% interest . Where there is supplementary public aid for the purchase of the equipment, the calculation for the crédit d’impôts is based on the cost of the purchases minus the financial aid given.

For further information.

There are a number of builders, who are keyed up to this You can also get information from myself or your Mairie. In the Vienne – Vienne Habitat, covers all the state aid available, in other departements, you have to knock on all the doors.