Start of the Green Industry Tax Credit

Industrial and commercial companies can benefit, under certain conditions, from a new tax credit for their investments aimed at developing industrial projects in 4 key sectors of the energy transition: batteries, solar panels, wind turbines and heat pumps.

Please note: in order to obtain this tax credit, the company’s investment plan must be subject to prior approval by the Minister for the Budget, taken after the assent of the Environment and Energy Management Agency.

The rate of this tax benefit varies between 20% and 60% depending on the location of the investments and the size of the company.

Note: the total amount of the tax credit is capped, in principle, at €150 million (€200 million in regional aid areas and €350 million in outermost regions).

The scheme concerns investment projects for which the application for approval is submitted as of 27 September 2023 and for which the authorisation is issued until 31 December 2025. However, its entry into force was subject to authorisation by the European Commission. It’s now done! The tax credit has therefore officially applied since March 14, 2024.

Please note: this tax credit is intended for companies that produce dedicated equipment in the 4 sectors mentioned above or their essential components, as well as those that produce or recycle the raw materials necessary for the production of this equipment or components. The mere acquisition or installation of photovoltaic panels is therefore not an eligible project for this tax credit.