Introduces tax credits for investments in green energy projects

On 30 December 2023, the Government of France published Law 2023-1322 of 29 December 2023 on finances for 2024, which introduces a tax credit for investments in the production of batteries, solar panels, wind turbines, and heat pumps. The tax credit, ranging from 20 to 60 per cent depending on the size of the company and the location of the investments, applies to investment projects with authorization applications submitted on or after September 27, 2023, and granted approval by December 31, 2025. The tax credit would be calculated on the basis of tangible investments (buildings, facilities, equipment, machinery and land necessary for the operation of such equipment) and intangible investments (patent rights, licences, know-how or other intellectual property rights), subject to compliance with certain conditions. The tax credit scheme is contingent upon confirmation by the European Commission regarding its compliance with European Union State aid law.

• Type:

  • Treatment and operation (Corporate taxation)
  • Promotion and facilitation (Investment incentives)

• Industry:

  • Not industry specific (SDG)
  • Manufacturing (Manufacture of machinery and equipment n.e.c.)

• Sources:

  • impots.gouv.fr, CRÉDIT D’IMPÔT AU TITRE DES INVESTISSEMENTS EN FAVEUR DE L’INDUSTRIE VERTE (C3IV), https://www.impots.gouv.fr/credit-dimpot-au-titre-des-investissements-en-faveur-de-lindustrie-verte-c3iv, 30 Dec 2023
  • legifrance.gouv.fr, LAW No. 2023-1322 of 29 December 2023 on finances for 2024, https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000048727345, 30 Dec 2023