The 2026 Finance Bill sets out an ambitious target: to reduce the public deficit to 4.7% of GDP by 2026 and bring it back below 3% by 2029, while maintaining competitiveness and productive investment.
1. Revision of rental values: visibility and breathing space for businesses
Article 27 postpones the revision of rental values for commercial and residential premises until 2027, in order to avoid a sharp increase in local taxation linked to the end of mitigation mechanisms.
Planned adjustments:
- Integration postponed until 2027,
- Smoothing of variations over six years,
- Extension of the moratorium by one year,
- Delay in the housing schedule after 2032.
2. New exemption scheme in QPVs
The new Article 44 octies B of the French General Tax Code introduces an incentive scheme for companies creating or taking over a business in a Priority Neighborhood (QPV) between 2026 and 2030:
- Five-year income tax exemption,
- Gradual reintegration (40 %, 60 %, 80 %),
- Exemption from CFE (business property tax) for 5 years, subject to local deliberation.
- Objective: to revitalize fragile urban areas and stimulate local employment, replacing the former urban free zones (ZFU).
3. Innovation: stability of the framework, end of CICO on December 31, 2025
The 2026 draft finance bill does not alter the main R&D support measures:
- CIR: unchanged,
- CII: unchanged,
- IP Box: unchanged,
- CICO: ends on December 31, 2025, with no extension announced.
4. Green taxation and rationalization of tax loopholes
The draft finance bill strengthens environmental taxation:
- Revision of the TICPE (domestic consumption tax on energy products), incentives for industrial decarbonization,
- Refocusing MaPrimeRénov’ on the most energy-intensive homes,
- Adjustments to waste and water charges,
- Increased support for urban renewal through the ANRU.
5. Corporate taxation: stability and selectivity
- IS maintained at 25 %,
- Exceptional contribution on profits extended for 2026 (at a reduced rate),
- Gradual elimination of the CVAE confirmed,
- Streamlining tax and social security loopholes remains a priority for 2027.
- A more predictable framework for SMEs and mid-cap companies, while placing greater demands on large companies.
6. What now? The debate begins
The parliamentary debate promises to be decisive.
Without recourse to Article 49, paragraph 3, of the Constitution, the text could be significantly amended by members of the House of Representatives and the Senate, particularly with regard to business support measures.
In short, the 2026 draft budget is a transitional and clarifying budget, but its final form will largely depend on the political compromise reached in Parliament. The Prime Minister assures that the government will propose and Parliament will vote.
Article written by:
Alex PROUVEUR – Tax Lawyer at G.A.C. Group
Alex holds a master's degree in tax law from the Catholic University of Lille and a specialized master's degree in business management from Skema Business School, specializing first in local taxation and then in innovation taxation. At G.A.C Group, he brings his expertise to innovative companies through constant monitoring of legislation and case law, and assists them when they are faced with audits by the tax authorities.
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