Policy status:In Force
Date Effective:2009
Policy Type:Economic Instruments>Fiscal/financial incentives>Tax relief, Economic Instruments>Fiscal/financial incentives>Loans, Regulatory Instruments
Policy Target:Energy Sector>Electricity Generation>Renewable, Buildings>Residential
Agency:Ministry of Budget, Public Accounts and Civil Service
Description:The 2009 Finance Law contains various provisions to increase financing for energy efficiency investments and in support of renewable energy. Some of the primary measures are described below. Zero-interest loans for house purchase (Art. 100) The Finance Law established a zero-interest loan programme for those purchasing a home for the first time (either new or existing construction); the loan amount is increased by EUR 20 000 if the building meets standards beyond those required under current building regulations. In general, this covers low-energy or positive-energy buildings (known respectively as BBC - bâtiments basse consummation, and BEPOS - bâtiments à énergie positive). Eco-loan: 0% loan for energy-efficient renovation (Art. 99) The Law also creates a zero-interest loan programme for major renovation activities. The aim is for energy savings to allow repayment of the loans capital. Activities that can be covered under the loan include: -Thermal insulation for roofs, exterior walls, and exterior glass surfaces; -Installation, regulation or replacement of heating or hot water systems; -Installation of heating or hot water systems using renewable energy. The loan amount is limited to EUR 30 000. Tax credits (Art. 103) The Finance Law modified existing provisions allowing tax credits for the interest paid on loans used to acquire or construct a new home, requiring that homes meet current building code efficiency requirements (RT 2005). It also extends the repayment period for which tax credits can be claimed from 5 to 7 years if the home meets thermal efficiency standards that exceed those currently in place. In addition, the rate remains at 40% throughout the 7 years, as opposed to regular conditions of 40% the first year and 20% the following years. Biofuels (Articles 16 and 17) The Law also includes some provisions targeting biofuels. Ethanol E85 is to benefit from progressively reduced consumption taxes; these are EUR 23.85 per hectolitre as of 1 January 2009, going down to EUR 20.69 as of 1 January 2010, and EUR 17.29 as of 1 January 2011. In addition, a new category of biofuel blend known as E10 is recognised, a low-lead fuel containing 10% ethanol and 22% ethers. It also provides for a consumption tax reduction on a variety of biofuels, ranging from EUR 15 to 21 in 2009, EUR 11 to 18 in 2011, and EUR 8 to 14 in 2012.

Last modified: Thu, 12 Jul 2012 15:45:30 CEST