Energy Renovation Of Your Home: What Assistance Should You Request?
Are you planning to purchase a work-requiring house, or do you simply want to renovate your home with the intention of increasing its energy efficiency? Thanks to various assistance mechanisms, given under conditions, public policies promote these initiatives. Concentrate on the major ones.
MaPrimeRenov, replacing CITE
MaPrimeRenov, introduced in early 2020, will operate in accordance with the Energy Transition Tax Credit (CITE) this year, which will vanish on 31 December 2020. Therefore the decrease in income tax is translated into a bonus paid by Anah (National Housing Agency).
It will be available for low-income households living in their homes from 2020 onwards, though landlords, property unions and all households will not be available until 2021.
Depending on the nature of the work and the materials used, the volume of the premium, limited to EUR 20 000 per accommodation, varies. It may include insulation, heating, or ventilation, as well as housing energy audits (houses or apartments in collective housing). To be able to be handled by the competent authorities, your request must be submitted on a dedicated site.
Finally, the organisation performing the work must be named RGE (recognised environmental guarantor) and this incentive can be combined with other assistance.
The zero-rate eco-loan
For the moment valid until the end of 2021, the eco-PTZ is aimed at any owner-occupant or lessor (and co-owners) without means-testing. The accommodation must have been completed before January 1, 1990 and constitute a main residence.
The eco-PTZ is obtained for a comprehensive renovation to improve the energy performance score of housing, or for work included in one of the following categories:
• The insulation of the roof (in full);
• Insulation of at least half of the walls facing the outside;
• Replacement of at least half of the windows and patio doors to the outside and made of single glazing;
• Insulation of floors, crawl spaces or open passageways;
• The installation or replacement of the heating system or domestic hot water production;
• The installation of an ecological heating system;
• Installation of ecological hot water production.
The overall value of an eco-PTZ is €30,000, with certain ceilings set according to the number and existence of the expected acts. Once the loan is granted, you will have 3 years to complete the work. Lastly, it is possible to combine contracting an eco-PTZ with receiving MaPrimeRenov.
VAT at reduced rate
To help finance home improvements, VAT has been reduced on most renovations. Usually 20%, two lower rates apply:
• 10% VAT is provided for improvement and development work, on supplies as well as on labor. This may concern joinery, kitchen, bathroom, heating in particular;
• A rate of 5.5% applies when it comes to renovations aimed at energy performance: increased insulation performance or greener equipment
Please note, you will have to order your materials from a construction company and not directly in the store to benefit from the reduced VAT rate. Your entrepreneur must receive a certificate, which justifies your right to a reduced VAT.
Aid and subsidies
Various bonuses or reductions may be granted, sometimes means tested.
• In terms of taxes, the Denormandie tax reduction reduces the income tax on people buying housing to renovate in certain neighborhoods. Also, work can lead to exemption from property tax in some communities.
• There is also aid for carrying out energy performance work: Anah pays a “Live with better peace of mind” premium of between € 1,600 and € 2,000 (depending on household resources), while Action Logement can award grants and a 1% loan.
• Energy supply companies can grant a bonus for carrying out energy saving works (by an RGE company). The same companies generally implement the “Energy Savings Boost” scheme, which helps low-income households.
• Finally, the energy check replaced social energy tariffs for low-income households. It is between € 48 and € 277, and automatically allocated following the calculation of the annual reference income.
Don’t hesitate to get started on the job, which will boost your home’s comfort while reducing your energy bills. The government offers an online simulator that will also direct you to the right contacts in order not to miss out on the subsidies you are entitled to.