Since the entry into force in March 2024 of the temporary tax credit for investments in green industry (C3IV)companies are encouraged to direct their spending towards infrastructures linked to the energy transition, in particular the production of batteries, solar panels, wind turbines and heat pumps.
This tax scheme applies to investments in specific tangible assetsIn accordance with the provisions of Article 39-12 of the French General Tax Code, the acquiring company and the company selling the assets must be at arm's length.
What does the updated BOFIP say about C3IV?
On October 2, 2024, the tax authorities recently introduced a derogation from this rulewhich allows the inclusion of property, plant and equipment acquired from related entities, provided that the latter act as central purchasing agencies, and only acquire equipment from unrelated third parties.
In this context, the expenses used to calculate the tax credit correspond to amount of initial acquisitions, not including the margin realized on the resale of assets. However, to benefit from this tolerance, it is necessary to the transfer of assets to the C3IV beneficiary must take place before commissioning of the latter.
All about C3IV
In our dedicated infographic C3IV's scope of intervention, eligibility criteria, calculation methods and approval procedure. You can also test your eligibility for free to this new tax incentive for investment in green industry.
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