Energy improvement works: all the help available in 2017
"In line with the 2016 tax credit for thermal renovation works, the energy transition tax credit (ISCED) is renewed in 2017. At the same time, other subsidies are available to finance this work, in 2017, Energy Rewards are to be granted. Overview of existing provisions."
Whether it is reinforcing the insulation of walls or roofs, replacing windows or installing a more efficient heating system, energy renovation works are encouraged by different types of financial aid. By gaining more comfort and saving on energy bills, this type of work is also part of a broader environmental approach favouring in particular the reduction of greenhouse gas emissions, responsible for global warming.
Energy Rewards 2017
In the form of cheques in Euros, this bonus is granted without being means-tested and must be requested before any work is signed, which must be carried out by a qualified RGE company (Recognized as a Guarantor of the Environment).
‘In 2017, the amounts allocated for this scheme under the Energy Savings Certificates (ESC) programme are particularly attractive and may be used to finance 100% of the work in some cases or to benefit, for example, of insulating the attic for 1 €. A bonus is added to this premium, which is available under the condition of resources: the solidarity energy premium.’
Energy transition tax credit
The transition tax credit is renewed in 2017. It makes it possible to deduct from income tax 30% of eligible expenses for certain types of work to improve energy performance. If the tax credit is greater than the amount of tax due, or in case of non-taxation, the excess is refunded. The amount of eligible expenditure shall be calculated on the amount inclusive of tax, after deduction of other aid granted elsewhere, and capped by five consecutive periods of 8 000 € for a single person and 16 000 € for a couple. The ceiling is increased by € 400 per dependent.
‘Since 1 March 2016, the tax credit can be cumulated with the zero-interest eco-loan without being means-tested, aid from Anah, local authorities and aid from energy suppliers.’
Since 1 January 2015, the decree on cross-compliance requires that only works undertaken by an EGR qualified company are eligible for the tax credit.
Zero rated eco-loans
The eco-loan is a zero-rated interest lending facility that provides financing for a coherent set of energy performance improvement projects.
‘In effect until December 31, 2018, it is between € 10,000 and € 30,000, with a repayment period of ten years (the term may be reduced to a minimum of three years).’
For the biggest work (set of three or more actions, with the option "global energy performance"), it even extends to fifteen years. The eco-loan is cumulative with other aid.
Reduced rate VAT
‘The VAT rate reduced to 5.5% applies to energy performance improvement works including the installation and maintenance of energy-saving equipment such as thermal insulation work, installation of heat pumps, condensing boilers, heating or production control systems using renewable energies.’
The reduced rate VAT is applied directly by the company on the invoice for the works. On the other hand, the VAT rate on the purchase of equipment and labour costs for improvements in dwellings completed more than two years ago is 10%, the signing of a certificate allowing to confirm the age of the dwelling and the nature of the work carried out being required.
The « Live better » programme from the National Dwellings Agency
In order to benefit from this subsidy, under certain resource conditions, the work undertaken must make it possible to significantly reduce the energy losses of the dwelling.
"the dwelling must be more than fifteen years old at the time the application for aid is accepted and the owner must not have received a zero-rate loan for home ownership in the last five years."
The program includes assistance for improvement costs, up to a maximum of € 20,000 and a thermal renovation aid (TRA) grant equal to 10% of the cost of the work.
The Anah program may also include supplementary aid granted by the local authorities (regional council, county council, commune, community of agglomerations, etc.). Some energy providers may also offer diagnostics, subsidized premiums or loans in case of energy renovation work.
To go further
In order to determine precisely what type of assistance you are entitled to, please visit http://renovation-info-service.gouv.fr