Have you recently completed or are you planning to do some work at home? If these are designed to save you energy, you may be eligible for state support.
Indeed, over the past ten years, several schemes have emerged to help households improve the energy performance of their homes, including the tax credit for energy transition, known as ISCED, and the zero rate "eco-PTZ" loan.
What is the Energy Transition Tax Credit (ETTC) and how can I benefit from it?
Individuals, whether owners, tenants or free occupants, can benefit from an income tax credit, known as the "Energy Transition Tax Credit" (ETTC), for expenses they have incurred to carry out work to save energy in their main residence.
Since September 1, 2014, the tax credit is equal to 30% of the amount of expenses paid during the tax year. However, the amount of tax credits granted is capped.
For example, a married couple without children cannot currently benefit from a tax credit of more than €16,000 per period of 5 consecutive years.
What types of work are eligible for the ISCED tax credit?
As explained above, to be eligible, the works must allow energy savings to be made.
While the principle is simple, it can be tedious to go into the details of eligible work expenditure.
The list below should enable you to determine whether the work you have or plan to do in your country qualifies for the ISCED tax credit.
For the taxation of income in 2015 and 2016, expenses paid in 2015 and 2016 in respect of:
- the acquisition of condensing boilers (expenses incurred up to 31-12-2015), gas micro-cogeneration boilers with an electrical production capacity less than or equal to 3 kilovolt-amperes per dwelling, high energy performance boilers (expenses incurred from 1-1-2016), heating control devices or insulation materials;
- the acquisition of thermal insulation materials for glass walls, insulating shutters or entrance doors to the outside;
- the acquisition and installation of thermal insulation materials for opaque walls;
- the acquisition of energy production equipment using a renewable energy source (with the exception of photovoltaic panels and, as from 1-1-2016, wind turbines producing electricity) or heat pumps other than air/air;
- the acquisition of equipment to connect to a heating network, mainly supplied by renewable energies or by a cogeneration installation;
- the performance of an energy performance diagnosis (only one diagnosis per dwelling) by a certified professional, except in cases where regulations make it mandatory;
- the acquisition of equipment to individualize the cost of heating or domestic hot water in condominiums;
- the acquisition of a charging system for electric vehicles;
- the acquisition, in the French overseas departments (DOM), of equipment for connecting to a refrigeration network, mainly supplied by refrigeration from renewable sources or recovery;
- the acquisition, in the French overseas departments, of equipment or materials for protecting glass or opaque walls against solar radiation;
- the acquisition, in the French overseas departments, of equipment or materials to optimise natural ventilation, in particular air mixers.
For the taxation of 2015 income, not only the expenses referred to above but also those paid from 1 January to 31 August 2014, which were then required to be part of a package of works in order to benefit from the tax advantage and whose other expenses of the package were paid in 2015, are eligible for the tax credit. In this case, all the 2014 and 2015 expenditures that make up the package of works must be declared as income tax for 2015.
What is the eco-loan at zero interest rate?
The eco-PTZ is a loan of a maximum amount of 30,000 euros granted for the financing of works that allow energy savings to be achieved.
This traditional loan, the interest on which is paid by the State, is granted, after examination of the file, by a partner bank of the State.
This is available to owners who wish to undertake eco-renovation work in a dwelling, whether they live or rent it.
The conditions for granting the eco-PTZ have recently been relaxed. However, there are still a number of conditions on the nature of the work that can benefit from this advantageous financing method, as well as on the conditions under which it must be carried out.
Which works are eligible for the eco-PTZ?
The work must be carried out by EGR (Recognised Environmental Guarantor) companies
The duration of the work (i.e. the time between the date of issue of the loan offer and the provision of the documents (forms and invoices) justifying the work) must not exceed 3 years (2 years previously).
Concerning the nature of the work, it must be:
- or works responding to at least 2 of the 6 actions of the following package of works:
- high-performance roof insulation,
- high-performance insulation of the walls facing the outside,
- high-performance insulation of windows and doors opening onto the outside,
- installation or replacement of a heating system or domestic hot water production,
- installation of a heating system using renewable energies,
- installation of domestic hot water production using renewable energies.
- or work to rehabilitate the non-collective sanitation system with non-energy-consuming devices,
- or work to achieve a "minimum overall energy performance" of the housing, which must be justified by a specific diagnosis.
Can I combine the "CITE" tax credit and the eco-PTZ?
If you meet the conditions set for the granting of each of these schemes, the accumulation of the tax credit and the eco-PTZ loan is possible, without any means test since 1 March 2016.