France has introduced a new “young impact innovation enterprises” (JEII) category under Law No. 2026-103 and extended key JEI local tax exemptions, including property and business property tax relief, through 2028.
The French Tax Administration announced, on 15 April 2026, new provisions establishing a distinct category of innovative young enterprises and extending critical tax relief measures through 2028, following the enactment of Law No. 2026-103 of 19 February 2026 on Finance for 2026.
Article 23 of Law No. 2026-103 on Finance for 2026 creates a new category of innovative young enterprises (JEI) called “young impact innovation enterprises” (JEII). These enterprises must meet all the criteria set out in 1°, 2°, 4° and 5° of Article 44 sexies-0 A of the General Tax Code (CGI), allocate between 5% and 20% of their expenditure to research and development, and meet the criteria of social and solidarity economy enterprises.
The scheme entered into force on the day following its publication, i.e. 21 February 2026.
As JEII status can only be assessed at the end of accounting periods closed as from 21 February 2026, the corporate income tax exemption applies only to accounting periods ending on or after that date. The measure is repealed as of 1 January 2029 and therefore applies only to accounting periods ending before that date.
In addition, Article 40 of Law No. 2026-103 of 19 February 2026 on Finance for 2026 extends, for three years until 31 December 2028, the exemptions granted to JEIs from property tax on built properties and from the business property tax (cotisation foncière des entreprises), codified respectively in Article 1383 D of the CGI and Article 1466 D of the CGI.
