In a flurry of support for philanthropy and social engagement, the French government has taken a major step by expanding tax measures that encourage donations to associations and foundations. This decision is a strong signal to strengthen national generosity at a time when solidarity is more than necessary. Citizens who want to reduce their taxes while actively contributing to the common good can rejoice: the benefits associated with donations are not only preserved, but also increased with the increased caps.
In addition, exciting plans are being renewed in favor of real estate, energy transformation and even investment in the local economy, revealing a number of opportunities to optimize taxes while actively participating in various key sectors of society.
So what are these extended tax measures that could have a positive impact on your tax return in 2024? Take a look at the must-see measures and see how these tax incentives can align with your personal projects and your civic aspirations.
Gift Aid Extension: A Blessing for Generosity
While the whiff of solidarity has never been more essential, the government has heeded the call by extending certain tax benefits for donations to associations. Tax benefits for donations are not only preserved, but also enhanced by increased ceilings.
- Donations to associations helping people in need: 75% tax reduction up to €1,000.
- Donations to other associations recognized as public benefit: 66% reduction within the limit of 20% of taxable income.
Denormandie and Malraux Devices: Real Estate Leverage
Investing in real estate using tax benefits is an opportunity that will continue in 2024 thanks to the expansion of targeted measures.
Device of Denormandie
It aims to stimulate the renovation of housing in city centers in busy areas. In addition to improvements to your property, you can claim:
- Tax reduction of up to 21% from the amount of work performed.
This scheme supports the restoration of buildings located in protected areas or areas protecting architectural, urban and landscape heritage.
- The tax reduction can reach 30% of the costs spent on the work up to EUR 400,000 for 4 consecutive years.
Energy transition and availability: commitments and savings
Energy transition and affordability remain at the heart of concern, with continued tax breaks allocated to dedicated facilities.
- Tax credit for the installation of charging stations for electric cars aimed at promoting clean mobility.
- Reduction for the installation of special equipment intended for the elderly or disabled, to maintain independence at home.
Little-Known Tax Credits: Extend Your Tax-Free Spectrum
In addition to the classic measures, other less well-known tax measures are equally interesting and will also be expanded in 2024.
- Tax credit for the prevention of technological risks for households near industrial sites.
- Tax reductions for small and medium-sized enterprises, including Young Innovative Enterprises (JEI), supporting investment in the local and innovative economic structure.
- Investments in companies for the financing of the cinematographic and audiovisual industry (Sofica) offer an attractive rate for tax exemption and support for artistic creation.
The extension of these tax reduction regimes in 2024 is news that will please many people. Whether encouraging generosity, promoting real estate investment, supporting the energy transition or investing in the local and cultural economy, the opportunities to benefit from tax benefits have never been more numerous and diverse. However, it is essential to ascertain the eligibility conditions of each of these measures in order to optimize their benefits. Tax exemption is an art that, if practiced judiciously, can also be a source of civic engagement and personal growth. It’s up to you to make finance relevant in 2024!