On 16 May 2023, as part of France’s ambitions to become a leading green industry force in Europe, Finance Minister Bruno Le Maire unveiled the “Green Industry Bill.” This comprehensive legislation includes a range of measures designed to propel France’s position in the green sector. Notably, the Finance Law for 2024 will introduce a new tax credit known as the “Green Industries Investment” (C3IV) tax credit. This credit aims to incentivize investment in green industries and foster sustainable growth within the country.
The credit will provide advantages to French companies that engage in tangible investments, including acquiring land, buildings, installations, equipment, and machinery, as well as intangible investments like patent rights, licenses, know-how, or other intellectual property rights. These investments are deemed essential for the production of new generation batteries and crucial components used in batteries, solar panels, wind turbines, and heat pumps.
The tax credit base will be equal to the cost of investments in strategic sectors for green reindustrialization and its rate may range from 20% to 45%.
