At the end of December 2023, parliamentarians definitively adopted the Finance Bill for 2024, after rejecting a motion of censure following the use of Article 49 paragraph 3 of the Constitution. The text was validated by the Constitutional Council on December 29 and promulgated on December 30, 2023.
The conclusions of the parliamentary shuttle reveal significant changes, in particular to tax credits.
Here is a summary of the most important points:
The creation of the Green Industry Investment Tax Credit (C3IV)
C3IV covers four specific sectors: batteries, wind power, heat pumps and solar panels.
In the end, the electrolysis and carbon capture, transport, storage and recovery sectors were not included in the draft adopted by the National Assembly.
Find out more about C3IV?
No change to the ITC until December 31, 2024
Despite the Senate's proposals (extending the scheme to December 31, 2026 and doubling the ceiling from 400,000 euros to 800,000 euros), the Innovation tax credit remains unchanged in the final text.
The credit will be suspended from December 31, 2024, without extension according to the adopted project.
Changes in the status of Young Innovative Companies
The status of Young Innovative Companies (JEI) is evolving marginally.
Companies meeting certain economic performance indicators defined by decree and allocating between 5 and 15 % of their expenses to research expenditure will qualify as a JEI..
This editorial change refers back to the amendments tabled on first reading by the French National Assembly concerning the JEI de croissance.
Since 1er January 2024, the income tax exemption mechanism has been abolished for companies created on or after January 1, 2024.
No change to the CIR
Although some of the changes proposed by Parliament have not been included in the final draft, these proposals testify to the company's willingness to take on the challenges of the future. parliamentarians' desire to adjust tax measures to specifically support small and medium-sized businesses.
Article written by
Alex PROUVEUR
Innovation tax lawyer
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