The French Finance Bill for 2026 (PLF 2026) has had a mixed parliamentary history. After rejecting the version resulting from the work of the National Assembly, the Senate adopted a text favoring the stabilization of tax arrangements for innovation, without any significant extension of existing regimes.
A contrasting parliamentary career between the National Assembly and the Senate
The French Finance Bill for 2026 (PLF 2026) has had a mixed parliamentary history. While the version that emerged from the National Assembly was ultimately rejected, the Senate opted for a more cautious approach, focusing on stabilizing existing schemes rather than extending them.
In the PLF 2026 as examined by the deputies, the decision was made to go back on certain measures introduced by the finance law for 2025 (LoF 2025), including the reinstatement of the young doctor scheme. This approach was not adopted by the upper house.
JEI and CICo: extension of the schemes without any substantive changes
The senators mainly opted for the extension of several major tax incentives for innovation for three years, until December 31, 2028. This includes collaborative tax credit (CICo).
The Senate also extended, for the same period, the system allowing young innovative companies (JEI) an exemption from social security contributions.
For the record, the Finance Act for 2024 had abolished the tax exemption on profits enjoyed by JEI. An amendment aimed at reinstating this exemption was adopted during debates in the Senate, before being deleted by a government subamendment. As a result, the JEI regime is extended under the same conditions, without reintroducing the exemption on profits, until December 31, 2028.
Creation of a new category: young innovative impact companies
Finally, the Senate has introduced a new category of young innovative impact companies. In addition to the advantages already granted to «classic» start-ups, these companies, when created in priority urban policy districts, will benefit from additional advantages, in particular :
- Exemption from corporate income tax; ;
- Local tax exemptions.
Green industry tax credit: extension and downward adjustments
Tax credit for investments in green industry (C3IV), created by the Finance Act for 2024, is extended for three years. However, the system has been substantially modified: eligible expenditure rates and ceilings have been lowered. For example, the rate applicable to investments made in mainland France has been reduced from 20 % to 15 %.
PLF 2026: what are the next steps in the budgetary procedure?
Following the Senate's adoption of the text and the National Assembly's rejection of the PLF 2026 in public session, the budgetary procedure enters a decisive phase. The text must now undergo a final reading, after the possible meeting of a joint committee (CMP) tasked with attempting to reach a compromise between the two chambers. Should the CMP fail, the lower house will have the final say.
Otherwise, if no budget is definitively adopted before the end of the year, the Government may resort to tabling a special law. Its sole purpose would be to enable the State to ensure the continued operation of public services in the absence of a voted finance law. However, this law would in no way prejudge future budgetary content: parliamentary debates on the PLF 2026 would then resume in full in January, under a new examination procedure.
In any case, the final adoption of the text would remain subject, if necessary, to the control of the Constitutional Council, before an expected presidential promulgation. no later than 12/31/2025.
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