The Finance Act for 2026 has been definitively adopted on February 2, 2026, following nearly four months of parliamentary debate between the government and the assemblies.
The text still has to undergo a constitutionality review by the Conseil constitutionnel, in accordance with the procedure laid down in Article 61 of the Constitution. The matter was referred to the Council on February 4; subject to this analysis, the law can then be promulgated by the President of the Republic and published in the Journal Officiel.
Our experts will decipher all the points to remember about the Finance Act for 2026 during our next webinar. Take this opportunity to get your questions answered!
Reform of JEI and fund-raising assistance
Article 11 quinquies: extension of the Young Innovative Companies scheme
Finance Act for 2026 extends exemptions from taxe foncière sur les propriétés bâties (TFPB) and cotisation foncière des entreprises (CFE) for young innovative companies, under articles 1383 D and 1466 D of the French General Tax Code.
These exemptions are renewed for companies created up to December 31, 2028.
It is specified that the income tax exemption attached to the status of young innovative company no longer applies to companies created on or after 1 January.er january 2024. However, companies created up to December 31, 2023 can continue to benefit from the scheme, provided they continue to qualify as young innovative companies.
The provisions of article 11 quinquies apply to companies created on or after 1 January.er January 2026.
Article 8 bis: creation of the Young Impact Innovation Company (JEII) status
The law creates a new category of company: the young impact innovation companies. SMEs are eligible :
- Under eight years of age ;
- Majority owned by individuals ;
- Incurring research expenditure eligible for the research tax credit (CIR) or the tax credit for collaborative research (CICo), representing between 5 % and 20 % of their tax-deductible expenses; ;
- Under the scheme for socially useful companies or in the social economy.
This plan is limited in time and ceases to apply as from 1 January.er january 2029.
The companies benefit from :
- An increased rate of the IR-PME reduction, set at 40 % ;
- Under certain conditions, exemptions from certain local taxes; ;
- Immediate repayment of CIR, CII and CICo claims.
Article 8 of the LoF: reform of the IR-PME «Madelin» tax reduction»
The Madelin« income tax reduction scheme has been modified to ensure its compliance with European Union law on state aid, and to refocus the tax advantage on equity financing for innovative companies.
The scheme is now mainly geared towards subscriptions via innovation mutual funds (FCPI). The investment conditions applicable to these funds have been relaxed:
- All instruments eligible for the regulatory quota can be used, including current account advances; ;
- No minimum holding in the capital of the beneficiary company is required; ;
- The deadline for meeting the investment quota has been extended from 30 to 48 months.
This extension also applies to local investment funds (FIP) investing in Corsica and the French overseas territories.
The tax reduction rate increased to 30 % for cash subscriptions to units in FIPs or similar bodies investing mainly in Corsica, local authorities governed by Article 73 of the French Constitution and overseas collectivities. The overall financing ceiling per company qualifying for the reduction has been raised from 15 to 16.5 million euros.
The entry into force of these provisions is subject to a decision by the European Commission confirming their conformity with European Union law.
CICo and C3IV: extended and adjusted schemes
Article 11 bis: tax credit for collaborative research (CICo)
The tax credit for collaborative research is extended for three years. It remains applicable to expenses invoiced by research and knowledge dissemination organizations in the context of collaboration contracts concluded until December 31, 2028.
Article 11 quater: tax credit for investment in green industry (C3IV)
The tax credit for investment in green industry is extended by three years. Visit projects approved until 2028 are eligible for the scheme.
Sound plan is adjusted to take account of the new European framework for state aid:
- The standard rate is 15 % ;
- Higher rates of 20 % or 35 % apply to investments made in regional aid areas, depending on their classification; ;
- The tax credit ceiling is assessed on a project-by-project basis and set at €150 million, with higher ceilings of up to €200 or €350 million depending on location.
Cumulation with other public aid is authorized within the limits of maximum aid intensities and an overall ceiling corresponding to 75 % of eligible costs. The new rules apply to applications for approval submitted on or after January 1.er october 2025, subject to approval by the European Commission.
Source: National Assembly
Securing your innovation and investment strategy in 2026
Against a backdrop of tight budgets and changing regulations, mastering innovation and investment support schemes is a strategic challenge for finance, tax and innovation departments.
G.A.C. Group supports innovative companies in analyzing regulatory impacts, anticipating tax changes and securing their tax returns.
FAQ - Finance Act 2026 and innovation
Will the JEI scheme be extended?
Yes, local tax exemptions are extended for businesses created until December 31, 2028.
What is the new JEII status?
It is aimed at innovative SMEs in the social economy that have a significant impact and incur significant research expenditure.
Will the collaborative research tax credit (CICo) be maintained?
Yes, the scheme has been extended to the end of 2028 for eligible contracts.
Is the green industry tax credit (C3IV) changing?
Yes, the scheme has been extended and brought into line with the new European rules on state aid.
