Renovation tax credit: the rules to follow for the CITE

RENOVATION Tax Credit: Definition of CITE

The Energy Transition Tax Credit (CITE) is a tax advantage granted to owner individuals who carry out certain insulation and energy savings on their main residence.

All accommodation completed for more than two years are affected, both houses and apartments.On the other hand, all renovation works do not open up to the CITE: only certain operations and certain equipment is targeted by law (article 200 quater of the CGI - General Tax Code).Likewise, several conditions apply to the calculation of the tax advantage, in particular a ceiling of expenditure.Finally, the work must be carried out by respecting several requirements, such as the qualification of professionals for example.

It was possible to benefit from the CITE (ex-tax said sustainable development or CIDD) for expenses incurred until December 31, 2020, for most equipment and eligible work.Changes took place in 2018, 2019 and 2020 for the tax credit, which was gradually transformed into a single lump sum premium, in accordance with the finance law (PLF) for 2020, promulgated on December 28, 2019.Since January 1, 2020, the aid field has been reduced.

Since 2020, the CITE has been fixed lump sum, depending on the nature of the work.It cannot exceed 75% of the expense.These expenses are capped at 2.400 euros for a single person and 4.800 euros for a couple subject to a common tax return.The ceiling is increased by 120 euros per dependent person (for each child in alternate custody, the increase in the ceiling is set at 60 euros).

The quotes replaced by a single premium from 2020

The Tax Credit for the Ecological Transition (CITE) was gradually transformed into a single premium for energy renovation in 2020 and 2021.As of January 1, 2021, the CITE therefore disappeared in favor of Maprimerénov ’.This new bonus merges the quotes and the aid of the National Housing Agency (Anah) "Living better agility", attributed to "simple renovation gestures" (insulation work, installation of equipment).

The new system, announced by the government as "simpler, fairer and more efficient", is part of the finance law (PLF) for 2020, definitively promulgated on December 28, 2019.

The full CITE transformation took place in two stages:

CITE: work eligible in 2021

If you have incurred in 2020 expenses for the installation of a closed home or a log or pellet insert, you benefit in 2021 from the CITE up to a lump sum of 600 euros.

The tax credit for ecological transition is now deleted for expenses made since January 1, 2021.However, in accordance with the finance law for 2021, transitional provisions have been put in place until the CITE extinction.

Are thus concerned by these transitional measures, which still allow you to benefit from the CITE in 2021:

In the event mentioned above, the CITE cannot be combined with the Maprimerenov system ’.

In addition to the nature of the operations, the granting of the tax credit is subject to compliance with precise technical characteristics and the achievement of energy efficiency objectives.These conditions are detailed on the ADEME website.

CITE: Eligible work in 2020

Work eligible for households with intermediate income in 2020

Here is the list of acquisitions and installations which given them a tax reduction under the "residual" CITE in 2020 for individual work:

In 2020, intermediate households could benefit from a tax advantage under the "residual" CITE for the following collective work:

Note: overall renovation projects were also eligible for the CITE in 2020 for households with intermediate income, with a package of 150 euros/m² of living space.

Work eligible for households at high income in 2020

The 20% households whose income is the highest (revenue deciles 9 and 10), which captured almost 50% of the CITE until now, were initially excluded from the new single fixed bonus.They could then take advantage of the "residual" city, but only for some insulation work.

Eligible individual and collective work was:

The 2020 scope of the "residual" CITE

2020 scales for households with intermediate income

The table below gives the scales of the tax advantage to which households could claim to intermediate income (those whose income is greater than the anh aid eligibility thresholds but below 27.706 euros per year for the first part of the family quotient) under the CITE in 2020, depending on the work carried out and the equipment installed individually between January 1 and December 31, 2020.

The table below indicates the scales for work carried out and equipment installed collectively during the year 2020.

2020 scales for households at high income

The table below specifies the scales of the tax advantage to which wealthy households could claim (revenue deciles 9 and 10) under the "residual" CITE in 2020, depending on the work carried out and the equipment installed (between theJanuary 1 and December 31, 2020) individually.

The following table gives the scales of the tax advantage to which households can be entitled to the highest income for work carried out and equipment installed collectively until December 31, 2020.

Mixed equipment (including photovoltaic elements)

Depuis le 1^er janvier 2014, les investissements dans les panneaux photovoltaïques qui utilisent l’énergie solaire pour produire de l’électricité sont exclus du champ du crédit d’impôt.

Special arrangements are provided for mixed equipment, which combine equipment eligible for the CITE and photovoltaic equipment.The fiscal advantage is thus calculated on the basis of the total cost of the mixed equipment, "on the one hand within the limit of a surface of solar sensors, and on the other hand after application on this surface thus determined by aCeiling of expenditure per square meter of solar collectors, ”says the website of the National Housing Information Agency (Anil).These modalities, variable according to the types of solar collectors, are specified in a decree dated December 30, 2015.

This calculation method prevails for expenses paid after September 30, 2015, unless a quote has been signed and a deposit paid before this date.

2020 tax credit: windows and boilers, what tax aid?

Energy transition tax credit 2020: what changes?

The government of Édouard Philippe, in accordance with the commitments made by Emmanuel Macron during his presidential campaign, decided to create a new assistance in carrying out energy renovation in the form of a premium to be collected immediately after the completion of the work.This financial assistance definitively replaces the tax credit since January 1, 2021.

In the absence of time for the implementation of Maprimerénov ’in 2019, the executive had opted for a providing transition period:

Invited on Europe 1 on December 17, 2018, François de Rugy, who then held the post of Minister of Ecological Transition, had announced that the government finally decided to "renounce the quotes to the change of windows".He had specified that the device would concern the replacement of simple glazing with double glazing and that the tax credit would be capped at 100 euros per window.The measure applies for the year 2019."It is not a question of subsidizing any type of window," he warned.

A decree of March 1, 2019, published in the Official Journal of March 7, 2019, provided details about the contours of the CITE application for boilers until December 31, 2019.Expenditure ceilings thus apply for these devices whose seasonal energy efficiency (that is to say their yield in heating) must reach 92%:

The 2020 finance law (PLF) for 2020 has initiated an evolution as to the aid granted to households eligible for aid systems for the work initiated since January 1, 2020.Thus, “intermediate” households (threshold between revenue deciles from 5 to 8) no longer benefit from the city for gas boilers, even those with very high energy performance.On the other hand, households "modest" and "very modest" and (located up to decile 4) can benefit from the new energy transition bonus for this type of equipment.

Another novelty introduced by the finance law for 2020: the installation costs are now included for all the gestures incurred, even those which are currently excluded.This concerns:

Regarding windows, they benefit until December 31, 2019 from a reduced rate of 15%, for simple glazing replacements, within the limit of a ceiling of 670 euros per equipment.The tax credit is limited to 100 euros per window.The PLF 2020 provides for a specific gesture with a help fixed according to the equipment installed (it should always be 100 euros).

Insulation, windows, wood stove ... which changes or not for the 2017-2018-2019-2020 tax credit credit

More specifically, here is what has or will change (or not) by December 31, 2019:

These provisions appear in article 200 quater of the general tax code and the finance law for 2019.

Boiler, windows: former rate of the tax credit applicable according to the date of quote

It is possible in some cases to derogate from the immediate application of the reduction or deletion of the tax credit for doors, windows, shutters and boilers at Fioul.

It all depends on the date of acceptance of the RGE professional quote and payment of the first deposit:

In all cases, full payment of the installer was to be made on December 31, 2018 at the latest.

Rate of 30% and declaration of work

If the site turns out to be complex, it is not difficult to understand the tax advantage it provides.Unlike previous iterations of the CIDD, which offered a variable tax credit depending on the nature of the work, only one rate (30%) is to be retained.And this, whatever the projects committed, as long as they are eligible for the device, with exceptions.

Only two categories of installations are transiently subject to a different tax credit rate (15% or 50%)

> taux de 15% :– du 1er janvier au 30 juin 2018 : pour la pose de fenêtres à double vitrage et l’installation de certaines chaudières au fioul à très hautes performances énergétiques– du 1er janvier au 31 décembre 2019 pour le remplacement de fenêtres à simple vitrage par du double vitrage

> taux de 50% :– du 1er janvier au 31 décembre 2019 pour la dépose d’une chaudière au fioul

To reach the tax carrot, individuals must inform the administration of the work carried out and their amount when declaring their income.Thus, work completed in 2018 had to be registered in the 2019 declaration to reduce the tax payable this same year.In the absence of a declaration, the taxman was unable to calculate the tax credit.

The date to remember

If in doubt for the declaration, you must refer to the final payment date of the work. S’ils avaient été lancés en 2017 après acceptation d’un devis et paiement d’un acompte, mais réglés définitivement après le 1^er janvier 2018, ils devaient ainsi être déclarés au fisc avec les revenus de 2018.Either in the declaration of income made in 2019 according to the conditions of application of the law provided for by the tax administration at BOFIP (ex-tax official taxes).

Expenses taken into account

The tax credit is calculated from the amount of eligible expenses all taxes included, excluding labor in most cases.

Nature of expenses

An individual cannot affect the tax credit if he buys the equipment himself and proceeds to the work.He is obliged to resort to the services of a professional for the acquisition and installation of equipment.The same company must carry out and invoice the work.

However, it can call on subcontractors.The expenses assumed by them must be invoiced by the "principal" company so that they are integrated into the calculation of the tax advantage.

ATTENTION : depuis le 1^er janvier 2016, une visite préalable à l’établissement du devis est obligatoire pour valider l’adéquation des équipements, matériaux et appareils à installer avec le logement.It can be carried out by the main company or its subcontractor.In the absence of a visit, the tax credit is not issued.

8 ceilings.000 or 16.Euros sur 5 ans

The generosity of the CITE has its limits.Expenditure ceilings apply, 8.Euros for a single person or 16.Euros for a couple.These thresholds are noted by 400 euros per additional dependent person, an amount which amounts to 200 euros per child in the case of an alternate residence.The tax credit cannot exceed 2.400 euros for a single person, a widowed person or a divorced person, and 4.800 euros for a childless couple.This sum is increased by 120 euros per additional dependent person.These 120 euros are divided by two in the event of an alternate residence of a child.

Please note: these ceilings have changed since January 1, 2020.

These limits are appreciated over five years: a single single who had registered 8.Euros in eligible expenses on its 2018 declaration could not resort to the CITE in 2019 again in 2019.Conversely, if this person had only declared 3.Euros of work in 2016, she had been able to benefit from the tax advantage for work carried out in 2018, up to 5.Euros (8.000 - 3.000).

Deduction of aid and subsidies

The amount of expenses to be declared must be reduced by aid and subsidies collected for carrying out the work."If you benefit from another public aid for the purchase of equipment and materials (regional council, general council, national housing agency), the calculation will be on the cost of the equipment deductions made of aid perceived", explains the Environment and Energy Management Agency (ADEME) on its website.

On the other hand, the sums received as a zero-rate loan eco (eco-PTZ) do not have to be deducted.

Namely: it is not possible to benefit from the CITE and the personal assistance tax credit (adaptation of housing for the elderly or disabled) for the same expenses. En revanche, le cumul du CITE et de l’éco-PTZ est autorisé, sans conditions de revenus depuis le 1^er mars 2016.

Competent professionals (RGE and quality signs)

Use a professional to benefit from the CITE is compulsory.In the majority of cases, the principal must use a professional holder of the RGE label (recognized guarantor of the environment).

RGE label and quality signs

Be careful however, it is not enough to call on any RGE professional: depending on the work category, the company must also display the quality signs issued by Qualibat qualification organizations, Qualit'enR, Qualifelec or those ofCéquami and Certibat certification.

The same company can support a large renovation, relating to several types of work* (insulation of the roof and walls and installation of a highly efficient boiler for example) and offer a global offer.However, it must have one of the following signs:

On its website, ADEME details in a booklet the certifications and qualifications to remember according to the type of work (Table 3, in pages 7 and 8).To facilitate research, the Renovation-Info-Service site.gouv.FR offers a search tool to find a RGE company near you.

*Eight categories in total: high energy performance boiler or gas micro-cogeneration;Windows, shutters, outdoor doors;Insulation of low walls and floors;roof insulation;Heating and/or solar hot water;Heating and/or hot wood with wood;heat pump;Geothermal drill.

RGE label exemption

Some exceptions exist for the following operations:

The supporting documents to transmit

The law does not retain any proof to provide the tax authorities following the completion of the work.

However, it is necessary to keep invoices preciously for at least three years, to present them to the administration in the event of tax audit.They must detail:

Special cases

Co -owners

The co -owners can take advantage of the CITE, not only for work on their main residence but also for the expenses they assume for the renovation of the common equipment of the condominium.

In this case, the date to remember is that of the invoice settlement by the trustee, and not that of the call of funds."It is up to the trustee to provide co -owners with a certificate or any other document formally establishing the date of payment of the work," said the Anil.

Tenants

When a tenant carries out work eligible for the accommodation in the accommodation he occupies, he can benefit from the tax advantage, even if the accommodation does not belong to him.But if the owner reimburses him the amounts spent within five years, the tax credit must be returned to the taxman.

Eco-PTZ cumulation and 2020 tax credit

Peut-on cumuler éco-prêt à taux zéro (éco-PTZ) et CITE ? Oui ! Depuis le 1^er mars 2016, la loi permet de cumuler l’éco-PTZ avec le crédit d’impôt transition énergétique sans conditions de ressources.It is thus possible to benefit from an eco-PTZ and the tax credit regardless of its income level for any eco-loan offer at zero rate issued in 2020.

The eco-PTZ is an interest reimbursable without interest over 15 years, in a maximum amount of 30.Euros.It makes it possible to finance the energy renovation work of an accommodation used as a principal residence that the aid applicant is owner or owner owner.