End of the tax credit, financial comment
The energy transition tax credit will no longer apply to changes to windows, shutters or front doors. The tax benefit will be replaced by a premium paid after completion of the work.
The announced end of CITE
A real boost for homeowners looking to renovate their homes, the energy transition tax credit (ISCED) reduces the amount of work. In order to encourage homeowners to provide better insulation to their homes, the CITE tax credit gives the right to reduce tax by 30% of a professional’s bill.
But the 30% tax credit is no longer relevant. Since 27 September, ISCED has seen its rate rise from 30 to 15%. This 15% will remain in effect until March 28, 2018. From this date, the energy transition tax credit will cease to exist for changes to windows, shutters or doors.
On the other hand, the tax advantage still concerns renewable heat tools, such as biomass, geothermal or solar energy sources. In the future, CITE will take the form of a bonus paid once the work is completed.
Finance energy improvement works with a credit buy-back
The question, therefore, arises: how to finance works with the abolition of CITE? Changing windows, a heating system or re-insulating a home will, therefore, cost more. Unless you have savings aside, a household that wants to do some work may consider doing a work credit. In fact, this loan dedicated to the financing of large works is a consumer credit whose rate will be higher compared to the rate of a mortgage.
Another solution is to finance a new project: the purchase of credit. This banking operation gives the possibility of collecting real estate loans and consumer loans within a single loan. Borrowers who are considering renovating their homes may also include funding for a new project. With a single income-adjusted monthly payment, the household can reduce their monthly debt ratio while renovating a house or apartment. In addition, by reducing the energy losses of a home, the occupants will also melt their energy bills.