As part of the examination of the budget for 2025, the Finance Committee of the National Assembly adopted the transformation of the tax reduction for dependency and accommodation costs in nursing homes into a tax credit. A measure which would cost the State nearly 900 million euros.
This is a measure of social justice which does not reduce public accounts. As part of the examination of the budget for 2025, the Finance Committee of the National Assembly adopted the transformation into a tax credit of the tax reduction for dependency and accommodation costs for people hosted in accommodation establishment for dependent elderly people (Ehpad) or long-term care unit (USLD). But what would this change in practice? Currently, the tax reduction reaches 25% within the limit of 10,000 euros of expenses, i.e. a maximum benefit of 2,500 euros. Problem: this tax reduction only benefits taxable people.
Hence the idea of socialist MP Christine Pirès-Beaune to transform the tax reduction into a tax credit. In this way, non-taxable people could indeed receive money from the tax authorities. What they can’t expect today in the tax cut. Let’s take the example of a dependent person who is eligible for a tax reduction of 2,000 euros but who is not taxable. In fact, she does not receive any tax advantage. If it were a tax credit, on the other hand, then this person would receive a transfer from the tax authorities in the amount of 2,000 euros.
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“This idea of transforming the tax reduction for dependency and accommodation costs for dependent people into a tax credit goes in the direction of better justice, undeniablyrecognizes Charles de Courson, general rapporteur of the Finance Committee. But I would like to draw your attention to the cost of this measure (…) It is 880 million euros.” The Independent Liberties Overseas and Territories (Liot) MP for Marne questions the State’s capacity to finance such a measure while the government is fishing for savings in all directions to straighten out the public accounts.
The bill for the state coffers would indeed be much higher than today. Around three times more than the tax reduction which cost, according to the amendment carried by the socialist elected officials, 272 million euros in 2023 and benefited 424,000 dependent people.
“When you are at home, you are entitled to this tax credit”
Christine Pirès-Beaune, who has defended this measure for several years, can nevertheless count on the support of the communist Nicolas Sansu, deputy for Cher: “When you are at home, you are entitled to this tax credit. That is to say that there is an inequality between people who are in establishments and people who are at home.he pointed out during the debates in committee.
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This is not the first time that such a measure has been adopted during the different stages of the legislative process of the finance bill without appearing, ultimately, in the text published in the Official Journal. But the transformation of the tax reduction into a tax credit for residents of nursing homes and USLDs has never passed the filter of 49-3, regularly drawn by Elisabeth Borne in 2022 and 2023. In other words, its adoption by the finance committee does not presage its inclusion in the final version of the finance bill for 2025. Far from it: as a reminder, the examination of the text in committee only sets the tone for the debates which will be held in session public. The deputies gathered in the hemicycle will in fact study the initial version of the text drawn up by the government, not the one amended by the commission.
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