Can I get French tax credit for a wood-burning stove?
I want to buy a wood-burning stove – is this eligible for a tax credit? We’ve had mixed information from different people.
Yes, under certain conditions it is possible to obtain a tax credit this year towards the cost of buying a wood-burning stove. This applies only for owner-occupiers and for main homes.
Confusion has probably arisen due to the fact that the long-standing income tax credit for eco-friendly home installations, known as CITE (credit d’impôt pour la transition énergétique), was, from January, replaced for households with a “modest” income with a grant.
However, the CITE tax credit remains in place, for this year only, for “intermediate income” households. We explain both scenarios here:
The new grant system is for households falling under certain means thresholds, as defined by the national housing renovations body Anah. These are for “very modest” households: €14,879 for a single person (€20,593 in Ile-de-France), €21,760 for a couple (€30,225 Ile-de-France); or for “modest” households: €19,074 (€25,068) for a single person, or €27,896 (€36,792) for a couple. For other family sizes, see: www.economie.gouv.fr/particuliers/prime-renovation-energetique.
Grants apply within a total ceiling of €20,000 of eligible materials over a five-year period.
If you qualify, you need to apply before having the work done, by creating an account at maprimerenov.gouv.fr. You will need to supply an estimate from a firm, a scan of an identity document and information on your taxable income (eg. an avis d’impôt).
If the dossier is accepted, you can have the work done and the payment is made to you after you send back a facture (invoice) from the firm. The firm completing the work must have the RGE (reconnu garant de l’environnement) eco-label. You can find one here: www.faire.gouv.fr/trouvez-un-professionnel
There are two main kinds of wood-burner: an insert designed to go into a fireplace to replace a traditional fire, or a free-standing poêle à bois.
Grants for these are €2,500 or €2,000 (for “very modest” or “modest” households) for the poêle, and for the inserts €2,000 or €1,200.
The equipment should meet certain performance criteria, but the installer should be aware of these, eg. for a stove, it needs flamme verte 6* certification, or equivalent, and it should not cost more than €4,000.
If you fall into an “intermediate” category this year, you may obtain the CITE income tax credit, in the usual way, by inserting the costs of work done in 2020 in your income tax declaration in spring 2021.
The income ceilings to benefit are €27,706 for a single person, or €44,124 for a couple.
This year, the tax credit represents a fixed amount but cannot be more than 75% of the actual cost. For a wood-burning stove, the amount is €1,000, or €600 for an insert. Work should be done by an RGE firm.