Ceilings of eligible expenses for the tax benefit
For a dwelling occupied by the taxpayer, the amount of expenses taken into account cannot exceed, between 01/01/2005 and 31/12/2015, 8000 € for a single, widowed or divorced person and 16 000 € for married or civil union couples. This ceiling is increased by 400 € per dependent.
There are sub-ceilings for expenditure on thermal insulation materials for opaque walls and photovoltaic panels.
Rate of the tax benefit
As of 2014, the rate of the benefit is now 15% for all expenses increased to 25% in the context of a package of work.
For example, for thermal insulation materials of glass walls (windows), in case of isolated expenses, the rate is 15%, and increases to 25% in the case of a package of work.
Year of application
The tax advantage applies differently depending on the property in which the work is integrated. Namely: either the year of completion of the property (for properties to be built), or the year of acquisition of the property (for properties acquired new), or the year of payment of the expense (for properties already completed).
The realization of these expenses within the framework of a work package can be spread over 2 consecutive years. The tax credit will be generated in the year the expenses are completed.
Imputation and recovery
The tax credit is deducted from the amount of income tax due.
If this tax benefit is greater than the amount of tax due, the excess will be refunded. The tax authorities may take back the tax credit if the taxpayer is reimbursed for the amount of the expenses incurred within 5 years; or if the landlord does not respect his commitment to rent for 5 years.