On 19 August 2026, the French government officially confirmed the extension of the Green Industry Investment Tax Credit (Crédit d’impôt pour investissements en faveur de l’industrie verte – C3IV) until 31 December 2028. Originally scheduled to expire at the end of 2025, the credit is a cornerstone of the “France 2030” industrial strategy and the European Green Deal alignment. The extension is enacted through an amendment to Article 244 quater Z of the General Tax Code, incorporated in the 2026 Supplementary Budget Law. The C3IV supports capital expenditures for the production of batteries, solar panels, wind turbines, heat pumps, electrolysers, and carbon capture equipment, as well as for the recycling of critical raw materials. Eligible companies must obtain a prior favorable opinion from the General Directorate for Enterprises (DGE) and commit to maintaining the investment for at least five years.
Key Takeaways
- Extended Investment Window: The three-year extension provides visibility for long-cycle industrial projects, allowing companies to plan capital expenditures through 2028. The credit rate remains at 20% to 45% of eligible costs, depending on company size and project location (enhanced rates for SMEs and projects in designated “territoires d’industrie”).
- Strategic Sector Coverage Confirmed: The list of qualifying technologies remains aligned with the EU Net-Zero Industry Act, covering battery cell manufacturing, photovoltaic chain, wind energy components, electrolyser production, and carbon capture utilization and storage (CCUS). The DGE will publish an updated eligibility guide by September 2026.
- Compliance and Clawback Rules: Beneficiaries must submit annual reporting to the DGFiP certifying continued operation of the funded assets. Early divestment, relocation outside the EU, or cessation of qualifying activity triggers a proportional clawback of the credit received, plus interest. The extension does not modify these anti-abuse provisions.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement