Energy renovation
The deputies adopted, in the Finance Committee, an amendment to the 2025 draft budget aimed at “clarifying” and broadening the scope of energy renovation work eligible for a VAT rate reduced to 5.5%. The installation of gas boilers will also continue to benefit from this reduced taxation.
While the budget for MaPrimeRénov’ – public subsidies intended for the energy renovation of housing – could be cut by 1 billion euros in 2025, the deputies are putting their pawns forward. The latter adopted on October 17, in the Finance Committee of the National Assembly, an amendment aimed at lowering the cost of work for individuals. More precisely, they made so-called works eligible for a reduced VAT rate of 5.5% – compared to 10% currently. “indissociable” energy renovation projects.
The socialists and right-wing elected officials behind this amendment wish “clarify legally” this provision. “Article 278-0 bis A of the general tax code, rewritten in 2023, sets a reduced VAT rate for “energy renovation services”, which restricts the scope of application of the measure compared to the old editorial »they say. The parliamentarians take the example of the installation of a heat pump or other renewable energy equipment (solar panels, thermodynamic water heater) which simultaneously require work to adapt the electrical installations or repair the premises. a room to accommodate the new equipment. These so-called induced benefits could therefore become less expensive.
Price of electricity: this heavy tax on consumption that no one wants
Gas boilers retain their reduced VAT
The reduced VAT rate will also continue to apply to the supply and installation of gas boilers. The government planned to increase this rate from 5.5% (or 10%) to 20% to encourage individuals to turn to completely carbon-free heating systems. But the deputies decided otherwise. “Punitive ecology harms the environment because it first penalizes the most modest” thus estimated MP François Jolivet (Horizons group). “Knowing that a gas boiler costs several thousand euros, the bill risks being high for French households having no other choice but to opt for this boiler model, for lack of a financially affordable alternative”adds RN deputy Anthony Boulogne.
The French Building Federation, the main professional organization in the sector, protested, recalling that replacing an old gas boiler with a very high energy performance system “immediately reduces energy consumption and greenhouse gas emissions by at least 30%.”
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