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Works credit Since September 29, 2010, individuals installing photovoltaic panels can benefit from a 25% tax credit to promote the adoption of renewable energies . Applies to purchase expenses for photovoltaic panels for the principal residence, but not to installation costs. The maximum amount of the varies according to the taxpayer’s situation. For a single person, the ceiling is 8,000 euros, for a child couple it is 16,000 euros, and a supplement of 400 euros per dependent may be added.

How does credit work?

The tax credit is calculated on 25% of the total expenses incurred for the purchase of photovoltaic panels. This credit serves as a mechanism to reduce the tax an individual owes. If the tax due is lower than the right to for the expenses of photovoltaic panels, the State reimburses the difference to the taxpayer. It is important to note that the tax benefit is applicable for the year in which the expenses were incurred.

Works credit In addition to the tax credit, individuals may also be eligible for subsidies granted by local authorities. These subsidies can be granted for the equipment or the installation of photovoltaic panels. If the subsidy concerns equipment, it will be deducted from the amount of the tax credit. However, if the subsidy is for installation, it will not affect the tax benefit.

AID coupled with the tax credit

Overall, the tax advantage and subsidies aim to encourage the adoption of photovoltaic panels for the production of renewable energy by offering financial incentives. The tax benefit eases the tax burden on individuals and grants from local authorities further support the installation of these panels. By combining these benefits, individuals can make sustainable choices while receiving financial assistance.

DAMY Law Firm