Failure of the 2026 Finance Bill: an unprecedented parliamentary deadlock
As was the case in 2024, Members of Parliament and Senators were unable to reach agreement on the French Finance Bill (PLF). After more than sixty days of parliamentary debate, several key innovation tax measures failed to pass. These included the extension of the collaborative tax credit (CICo)from green industry investment tax credit (C3IV), as well as the stated desire of certain members of parliament to reintroduce the scheme for young doctors under the research tax credit (CIR).
Persistent disagreements between the upper and lower houses prevented the emergence of a compromise. Faced with this institutional impasse, on December 23 the Prime Minister tabled a special bill, subsequently adopted by both assemblies.
A special law to ensure the State's budgetary continuity
The special law adopted is not intended to constitute a budget. It has neither the form nor the content of a budget. Its purpose is strictly limited: extend the execution of the 2025 budget in order to ensure continuity of public action and avoid a «shutdown» scenario, as experienced in the United States in the absence of a budget bill.
This law therefore enables the State to continue collecting taxes and incurring essential expenditure, but without introducing new tax or budgetary measures.
Taxation of innovation: what immediate impact for companies?
For companies, particularly those involved in research and innovation, the consequences are immediate. All provisions relating to the taxation of innovation remain unchanged. identical to 2025. Plans to reform and extend existing systems are temporarily «put on hold» and have no legal effect.
From now on, we'll have to wait until the beginning of next year to witness the restart of the budget process: committee work, public sessions, parliamentary shuttle between the two chambers and successive votes. In accordance with constitutional deadlines, Parliament will have 70 days to adopt a final budget.
In the meantime, companies have to deal with a unchanged tax framework, We are waiting for the clarifications that are essential to secure their investments in research, development and innovation.
Securing your innovation tax strategy
Against a backdrop of budgetary and regulatory uncertainty, securing innovation support schemes (CIR, CII, etc.) remains a strategic challenge.
G.A.C. Group supports innovative companies in analyzing regulatory impacts, anticipating tax changes and securing their tax returns.
FAQ - PLF 2026 and special law
Why was the PLF 2026 not adopted?
Persistent disagreements between the National Assembly and the Senate prevented the adoption of a joint text within the constitutional deadline.
What is a special budget law?
This is a transitional text enabling the previous year's budget to be rolled over to avoid a public finance stalemate.
Will innovation tax systems change in 2026?
No, to date. In the absence of a Finance Act, the applicable rules remain identical to those in force in 2025.
Are the measures previously envisaged for the CIR and related schemes effective?
No. The measures envisaged are suspended and have no legal effect until a new budget is voted.
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