{"id":2128,"date":"2024-03-07T14:02:43","date_gmt":"2024-03-07T14:02:43","guid":{"rendered":"https:\/\/www.jcarmand.com\/en\/?p=2128"},"modified":"2024-03-19T17:34:55","modified_gmt":"2024-03-19T17:34:55","slug":"green-industry-tax-credit-c3iv-how-to-benefit","status":"publish","type":"post","link":"https:\/\/www.jcarmand.com\/en\/tax-incentives-and-subsidies\/green-industry-tax-credit-c3iv-how-to-benefit\/","title":{"rendered":"Green industry tax credit (C3IV) : how to benefit?"},"content":{"rendered":"<h2>Green industry tax credit (C3IV) &#8211; Abstract &#8211;<\/h2>\n<p>&nbsp;<\/p>\n<p>The green industry tax credit (in French Cr\u00e9dit d&#8217;Imp\u00f4t au titre des investissments pour une industrie verte &#8211; C3IV) is designed to support investment in the production of clean technologies. It can be worth up to \u20ac150 million, or even more in some cases. Below is a summary of the scheme.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Which companies are eligible for the <\/strong>green industry tax credit?<\/h2>\n<p>&nbsp;<\/p>\n<p>Industrial and commercial companies, taxed according to a real system or temporarily exempted, are eligible for this green investment tax credit, subject to prior approval.<\/p>\n<p>They must, among other things,<\/p>\n<ul>\n<li>Not to be in difficulty according to European Union regulations,<\/li>\n<li>Commit to operating eligible assets for 5 years (large companies), 3 years (others).<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>What expenses are eligible? <\/strong><\/h2>\n<p>&nbsp;<\/p>\n<h3>Investments eligible for the green industry tax credit are<\/h3>\n<ul>\n<li>not only those used to manufacture batteries, solar panels, wind turbines and heat pumps,<\/li>\n<li>but also those that enable\n<ul>\n<li>manufacture the components essential to the production of this equipment and machinery and\/or<\/li>\n<li>add value to the critical raw materials used in the manufacture of the above-mentioned components, equipment and machines.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>These suppliers must, however, generate at least 50% of their sales with companies downstream of the production chain.<\/p>\n<p>The following diagram summarizes the value chain.<\/p>\n<div style=\"width: 846px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.jcarmand.com\/en\/wp-content\/uploads\/2024\/03\/C3IV-Value-chain.png\" alt=\"C3IV - Green investment tax credit\" width=\"836\" height=\"504\" \/><p class=\"wp-caption-text\">C3IV<\/p><\/div>\n<h3>These include capital expenditure incurred for<\/h3>\n<ul>\n<li>The acquisition of assets from unrelated companies\n<ul>\n<li>Property, plant and equipment (buildings, installations, equipment, machinery and land needed to operate the equipment) and<\/li>\n<li>Intangible assets (patents, licenses, know-how or other intellectual property rights),<\/li>\n<\/ul>\n<\/li>\n<li>The acquisition of temporary occupation permits for plots of land on which the production facilities will be built.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>What ceilings and rates apply<\/strong><\/h2>\n<p>In principle, the green industry tax credit cannot exceed \u20ac150 million. The standard rate is 20% for large companies, 30% for SMEs and 40% for VSEs (as defined by the EU).<\/p>\n<p>By way of exception, these ceilings and rates are increased respectively by<\/p>\n<p><a href=\"https:\/\/www.legifrance.gouv.fr\/jorf\/id\/JORFTEXT000046003627#:~:text=L'annexe%202%20d%C3%A9finit%20les,intensit%C3%A9s%20d'aide%20des%20zones.\">50 million and by 5 points for investments in regional development zones <\/a><a href=\"https:\/\/www.legifrance.gouv.fr\/jorf\/id\/JORFTEXT000046003627#:~:text=L'annexe%202%20d%C3%A9finit%20les,intensit%C3%A9s%20d'aide%20des%20zones.\">in <\/a><a href=\"https:\/\/www.legifrance.gouv.fr\/jorf\/id\/JORFTEXT000046003627#:~:text=L'annexe%202%20d%C3%A9finit%20les,intensit%C3%A9s%20d'aide%20des%20zones.\">mainland France<\/a>,<\/p>\n<p><a href=\"https:\/\/www.legifrance.gouv.fr\/jorf\/id\/JORFTEXT000046003627#:~:text=L'annexe%202%20d%C3%A9finit%20les,intensit%C3%A9s%20d'aide%20des%20zones.\">200 million and by 20 points for investments made, mainly in French overseas departments and territories<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<div style=\"width: 1150px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.jcarmand.com\/en\/wp-content\/uploads\/2024\/03\/Green-Industry-Tax-Credit-2.png\" alt=\"C3IV - Green investment tax credit\" width=\"1140\" height=\"320\" \/><p class=\"wp-caption-text\">Green investment tax credit<\/p><\/div>\n<p>&nbsp;<\/p>\n<h2><\/h2>\n<h2><strong>Approval process\u00a0<\/strong><\/h2>\n<p><strong>\u00a0<\/strong><\/p>\n<p>To qualify for the green industry tax credit (C3IV) scheme, a request for approval must be submitted jointly by the tax authorities (DGE+ DGFIP) and ADEME (The French Agency for Ecological Transition) before building work begins.<\/p>\n<p>Only expenses incurred after approval are eligible for the tax credit. Approval will be granted until December 31, 2025.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Reimbursement and accumulation with other schemes<\/strong><\/h2>\n<p><strong>\u00a0<\/strong><\/p>\n<p>The tax credit is deducted from the corporation tax. The excess is reimbursed immediately.<\/p>\n<p>It can be combined with other innovation grants (<a href=\"https:\/\/www.youtube.com\/watch?v=FSKVCGIMiC4\">CIR<\/a>, <a href=\"https:\/\/www.youtube.com\/watch?v=xx45KGKxvR4&amp;t=135s\">Young Innovative Status (JEI)<\/a>, CII).<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Green industry tax credit (C3IV) &#8211; Abstract &#8211; &nbsp; The green industry tax credit (in French Cr\u00e9dit d&#8217;Imp\u00f4t au titre des investissments pour une industrie verte &#8211; C3IV) is designed to support investment in the production of clean technologies. It can be worth up to \u20ac150 million, or even more in some cases. Below is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1485,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-2128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-incentives-and-subsidies"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Green industry tax credit (C3IV) : how to benefit from it?<\/title>\n<meta name=\"description\" content=\"Uncover the Green Industry Tax Credit (C3IV) (up to \u20ac M 150 and in some cases more) for supporting clean technology investments. 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