50% reduction or reimbursement on green energy?

[TroisChatNoir]

I have been getting quotes from various heating/hot water suppliers on

Geothermal, Solar & wind power & good old fashioned wood

burners for our renovation project and on all of them I am being told

if I get professional installations I can recieve a 50% tax reduction

on materials & pay TVA at 5.5% instead of 19.7%.

As I am not paying tax yet will I be able to claim this and recieve a

cheque from the Tax office? does this rule still apply if I install the

systems myself? it all seems a bit too good to be true any help would

be greatly appreciated

[chris pp]

No, no and no. The tax credit only works if you pay tax and it would not apply if you did it yourself, there is a list of authorised installers, who needless to say invariably charge a lot more than the 50% that you would receive in tax credit.

Chris

[Clair]

To qualify, you must first be a French resident.

If you are, you can claim against your tax bill work that involves heating installation (wood burner, boiler, heat pump...), insulation (double glazing, rock wool and similar...) and renewable energy (solar hot water and/or heating...) provided they are purchased and fitted by a professional.

This should give you some basic info: ademe.fr (rates)                       ademe.fr (equipement)          ademe.fr (how to)     ademe.fr (example)

[cooperlola]

Clair, my roof's just been replaced and lined (professionally) with that tin-foil stuff.  Are you saying I can claim something back then, or should I have done this before? It looks like it from your link.  Must ask my accountant to put this on the next tax return if so.

[Clair]

If the insulating material matches the required R rating (although I've never known them to check anything but the invoice) and you have done this work during 2006, you should be able to claim some of the purchase cost against your tax bill when you fill in your déclaration d'impôts in 2007.

You'll nedd to send a photocopy of the invoice with your déclaration.

The rate for this is 25% I think, so if you've spent 1000€ on the purchase, you should be able to get 250€ against your tax bill in Oct 07.

A friend re-roofed his converted barn in 2004 for about €30k and was able to claim over €5k the following year. The rate was lower than now.

[Clair]

[quote user="chris pp"]... The tax credit only works if you pay tax ...[/quote]

Small correction: you don't have to pay tax, you just need to fill in a déclaration d'impôts, i.e. be a French resident.

If your income does no qualify you for income tax, you get a refund cheque from your tax centre.

[cooperlola]

Thank you.  What good news, worth a try even if it doesn't come to anything.   How would you like to take your commission?[:D]

[Deimos]

In the case of the woodburner, I believe its a rebate on the cost of the woodburner NOT materials in general. For example, if you are having a tube installed, etc. then this can be quite expensive. Similarly, other "misc" odds and ends will probably not be included in the rebatable sum.

My understanding is that you do not actually have to pay tax, just be submitting a French income tax return. If your tax bill is less than the rebate (for the year) then you will get a cheque (or they will transfer funds into your account) for the difference. Note that the rebate applies to the tax return for the year the woodburner was invoiced. Thus there will probably be a delay between you paying for the woodburner and getting the rebate. Once your tax has been calculated (sept'ish), then I have found that the tax people are very good (and fast) at sorting out rebates. 2005 tax year I was over-charged, but paid the inflated amount and appealed (paid because of time limits). They then re-calculated and I got the refund very quickly.

However, its still a decent rebate. For me (last winter), the cost was dramatically less having it professionally installed than had I done it myself (though, in practice it is not the sort of thing I would try and do myself anyway).

Ian

[Clair]

[quote user="cooperlola"]Thank you.  What good news, worth a try even if it doesn't come to anything.   How would you like to take your commission?[:D][/quote]

Shush...! I'll PM you...[img]http://www.websmileys.com/sm/angels/teu26.gif[/img]

[Patf]

We were told that this also applies to having a certain type of central heating boiler installed - avec condenseur - using gas.. Hope this works out as most of our tax is paid in UK though we make a declaration here. Is this a ruling just for France or is it an EU regulation? Pat.

[Clair]

this is a French initiative to encourage and promote the installation of energy saving equipment.

It has been running for about 3 or 4 years and was extended this year to 2009 I think...

[Ron Avery]

Just to clarify, the tax rebate is on the cost of the fire, you cannot claim or get any tax relief on the man hours charged to fit it AND it must be installed by the supplier, you cannot get a cheaper fire at a brico get it installed by a third party and claim the cost, the fire and installation must be on ONE bill from an accredited supplier. 

[maxsan]

"To qualify, you must first be a French resident." This is both wrong and misleading. Go to http://www2.ademe.fr/servlet/getDoc?id=11433&m=3&cid=96 and all the information you need is there. You have to be a taxpayer or registered for tax in France. There are various qualifications for what yopu can claim and there is assistance from differing quarters for different types of energy installation. For example: I have had new double glazed upvc windows fitted. Can I claim anything? Yes, if the windows are the correct standard as laid down by the impots.  If I have the work done or buy the equipment prior to the 31st of december of the second year since I bought the house, then I can get 40% of the cost back. If it is more than that then only 25%. In both cases the house must have been built prior to 1977. This is just one example and they are all different. In some cases the work (solar hot water) must be done by an acredited installer whilst in others you can buy the stuff and do the job yourself.  All the information you could possibly need is on the Ademe site you just have to take the time to trawl through it all.

If you are paying tax and have the job done prior to december the 31st of 2006, then you will get the tax credit in 2007. If you are not paying tax but registered for tax (you are on low income) then the impots pay the money into your bank account.

[Clair]

[quote user="maxsan"]"To qualify, you must first be a French resident."

You have to be a taxpayer or registered for tax in France.[/quote]

I have no wish to split hairs, but  are not both statements saying the same thing?

For clarification:

[quote]Quand est-on considéré comme ayant son domicile fiscal en France ?

Sont considérées comme ayant leur domicile fiscal

en France les personnes, qu'elles soient de nationalité française ou

étrangère, remplissant l'un des critères suivants :

 

• avoir en France leur foyer ou le lieu de leur séjour habituel.
   

  Il s'agit du lieu de résidence habituel ayant un caractère permanent. 

• exercer en France une activité professionnelle salariée ou non, qui ne soit pas une activité exercée à titre accessoire.
   

  Si le contribuable exerce plusieurs activités,

  l'activité principale, c'est-à-dire celle qui lui procure l'essentiel
  de ses revenus, est prise en compte. 

• posséder en France le centre de ses intérêts économiques.
   

  Il s'agit du lieu où le contribuable a effectué

  ses principaux investissements, possède le siège de ses affaires d'où
  il administre ses biens.[/quote]

[TroisChatNoir]

well I am a French resident of 6 months, and will be submitting a tax

return in 2007 as a self employed builder so may not earn enough to

actually pay anything, however I don't plan to have profesional

installations as that would be a bit like taking coals to Newcastle and

buying it back as well! how does that affect me ...

[Clair]

[quote user="TroisChatNoir"]well I am a French resident of 6 months, and will be submitting a tax

return in 2007 as a self employed builder so may not earn enough to

actually pay anything, however I don't plan to have profesional

installations as that would be a bit like taking coals to Newcastle and

buying it back as well! how does that affect me ...[/quote]

I believe that unless you can submit an invoice (or copy of) from a

professional, showing purchase and fitting, you will not be able to

claim against your 2007 income tax bill.

Others may have a different opinion...

[cooperlola]

If TroisChatNoir is a registered professional, can he send himself a devis/bill?  Or maybe his OH if he has one, and she can claim it back?