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Ecological Renovation and Tax Benefits: How does it work?

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Finance Studio is the result of the alliance of EDF and BNP Paribas Personal Finance. While EDF aspires to more ecology, economy and comfort for its customers, by encouraging them to carry out renovation work, BNP Paribas Personal finance provides them with all its know-how in the expertise carried out, to put into implement a "responsible" credit. Finance Studio has also become the specialist in eco-financing. Since 2003, Finance Studio has been able to support 450,000 individuals in their projects. Thus, their main activity is to improve the energy eco-efficiency of housing.

Buildings are known to have some impact on the environment. They are responsible for 23% of greenhouse gas emissions in France. It is therefore urgent and essential to reduce the impact of the latter. Obviously, the most efficient technique would be to construct positive energy buildings (BEPOS), in short, habitats that would produce more energy than they would consume. ( http://artists-studio.com/actualites/le-batiment-du-futur-produrez-sa-propre-energie )

Today, the easiest way to reduce the energy impact of your home is to undertake renovations in an ecological approach. On average, it is estimated at € 6,000, the price of replacing a boiler with a condensing boiler . If the amount of the overall envelope for renovations may seem large, the annual savings are also. Thus, concerning a gas heating, a household on average, achieves 496 € of annual savings. Even more encouraging, an oil-heated fireplace can save up to € 725 per year.

As discussed previously, insulation work is unsurprisingly the renovations popular with homeowners. They promise certain and lasting savings. Insulating unfinished attics costs between 2,500 and 5,000 € for annual savings estimated at 636 € by having electric heating. More surprisingly, the cost of insulating furnished attics is higher than that of insulating unfinished attics, to ultimately obtain similar savings. Thus, the annual savings for a gas-heated fireplace are estimated at 482 €.

Individuals undertaking ecological renovations on their habitat can therefore benefit from certain tax advantages. There is the tax credit for energy transition or the reduction in VAT to 5.5% for energy renovation work. In order to benefit from this reduction in VAT, certain requirements must be met: among others, the energy renovation must concern the main residence. In addition, the amount of expenses giving rise to the right to the tax credit cannot exceed € 8,000 for a single, widowed or divorced person and € 16,000 for a couple or partners bound by a civil solidarity pact, however each dependent. allows an increase of € 400 of the latter amount. This tax credit will be possible, for example, for thermal insulation work or even for the supply of electricity. One of the advantages of the energy transition tax credit is that it can be combined with the eco-PTZ.


Individuals undertaking energy renovations can also benefit from a reduced VAT rate of 5.5%. For this, the projects initiated must be included in the exhaustive list established by the government. Beyond the renovations, the induced work is covered. Thus, the costs of the work considered inseparable from the final work such as the renovation following a replacement of the boiler or the destruction of a floor, will be able to benefit from this VAT at 5.5%.

The eco-PTZ is best known by environmentally conscious homeowners. This free and interest-free loan is applicable for any main home or condominium prior to 1990. The maximum amount granted is € 30,000. Regarding the maximum repayment period, this will be 15 years for certain major renovations.

From July 1, 2016 (pending the release of the law) a second eco-PTZ may be requested for the same accommodation The eco-PTZ also remains cumulative with the sustainable development tax credit.

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