Energy equipment: what expenses must be declared?

Before implementing restrictive measures, such as the impossibility of renting poorly classified accommodation in terms of energy, the government implemented a number of advantageous fiscal measures to encourage the energy renovation of the park French real estate. While some of the better-off households are not entitled to the tax credit , most homeowners carrying out renovation work is entitled to the energy transition tax credit or Cite . This tax system is still in place, so take advantage of it before it is removed .

What conditions to benefit from the tax credit?

There are certain conditions to be fulfilled to be eligible for the tax credit associated with an energy renovation. Not all households are entitled to it and neither are all owners. It is necessary to be below a certain reference tax income to benefit from it . The location of your property will also influence the tax credit. If you are a single person residing in Île-de-France, your reference tax income must be less than 19 . 068 euros to give you rights to the tax credit. Everywhere else in France, this amount is reduced to 19. . 068 euros. Another condition is that your renovation work concerns your main residence. It should be noted that the amount of the tax credit cannot exceed a certain threshold. Thus, a single person can obtain a maximum of 8. euros of tax credit, or 16. 000 euros for a couple making a joint income tax return. However, some work gives rise to more tax credit than others, such as the removal of an oil tank or the installation of an electric vehicle recharging terminal at home. As you will have understood, the easiest way to know exactly the amount of the tax credit depending on the nature of your work and your income is to call the National Housing Agency or Anah.

Which are the works which give right to the Cite?

Certain renovation works give entitlement to the Cite, but this is not systematic. It is therefore essential to inquire before signing the quote from your service provider. In order for your work to be eligible for the Cite, it is necessary to have it carried out by a company and not by you. In some cases, it may also be required that the company be certified as a Recognized Guarantor of the Environment. Concerning the works specifically, there are large families of works that are concerned. This is for example the case with insulation. If you have double-glazed windows installed or have the walls, roofs, ceilings or attics insulated … this gives you access to the tax credit. Another large family of renovations giving right to the Cite, the renovation of heating equipment. The installation of a wood or solar energy heating system, of a heat pump other than air / air, connection to a heating or cooling network … are all works that also make it possible to benefit from the Cite. You can thus benefit from a reduction of 4. euros for the implementation of a geothermal heat pump. All of these energy upgrades can be done at home or in a condominium. In this case, the owners of the apartments in the building will be able to individually claim a tax credit at the time of the income tax return. The establishment of an electric vehicle charging system is also strongly encouraged. In all cases, it is in your interest to contact an advisor to carry out the renovation work that is best suited to your home and your tax situation.

Namely on the energy transition tax credit …

From a purely administrative point of view, the tax credit is easy to claim. Just fill out the annex form 2021 Rici at the time of your annual income tax return. There is a box for each type of renovation work. The tax credit will allow you to reduce your tax, or even exempt yourself from it. If the amount of your tax credit is greater than the amount of your tax, you will receive a transfer corresponding to the difference. In order to benefit from this aid with complete peace of mind, it is essential to call on recognized professional companies. Keep all invoices in a safe place so that you can justify the work in the event of an inspection. If you do not have sufficient funds to advance the amount of the work, you can combine the tax credit with an eco-loan at zero rate. This device is very advantageous for the most modest households, because some work may exceed 000 . 000 euros. Also note that the Cite can be combined with 5.5% VAT. This reduced rate is valid for work to improve energy performance and concerns many tasks, such as removal, installation, landfill and others.

(By the editorial staff of the agency hREF )