XL : Tax credit for arts and crafts

I. - The companies referred to in III and taxed on the basis of their actual profits or exempt pursuant to Articles 44 sexies, 44 sexies A, 44 octies A, 44 duodecies, 44 terdecies to 44 septdecies may benefit from a tax credit equal to 10% of the sum of:

1° Salaries and social charges relating to employees directly assigned to the creation of works made in a single copy or small series. The creation of unique works, made in a single copy or small series, is defined according to two cumulative criteria:

a) A work that can be based on the production of plans or models or prototypes or tests or manual development specific to the work;

b) A work produced in one copy or in a small series that does not appear identically in the company's previous achievements;

2° Depreciation allowances for fixed assets created or acquired new that are directly allocated to the creation of works mentioned in 1° and to the production of prototypes ;

3° Costs of registering designs and models relating to the works mentioned in 1°;

4° Costs of defending designs, models, up to a limit of €60,000 per year;

5° (Repealed);

6° Expenses relating to the development of works mentioned in 1° entrusted by these companies to external stylists or style offices.

I bis. - The companies mentioned in 1° and 3° of III of this article and taxed on the basis of their actual profits or exempt pursuant to the same articles 44 sexies, 44 sexies A, 44 octies A, 44 duodecies and 44 terdecies to 44 septdecies and working in the field of heritage restoration benefit from the tax credit provided for in the first paragraph of I of this article in respect of:

1° Salaries and social charges relating to employees directly assigned to the heritage restoration activity;

2° Depreciation allowances for fixed assets created or acquired new that are directly assigned to the activity mentioned in 1°;

3° Costs of registering designs and models relating to the activity mentioned in the same 1°;

4° Costs of defending designs and models, up to a limit of €60,000 per year;

5° Expenses relating to the activity mentioned in the said 1° entrusted by these companies to external stylists or style offices.

II. - The 10% rate referred to in I is increased to 15% for the companies referred to in 3° of III.

The tax credit is capped at €30,000 per year per company.

III. - Companies eligible for the tax credit are:

1° Businesses whose staff costs relating to employees practising one of the art professions listed in an order of the Minister responsible for small and medium-sized businesses represent at least 30% of the total payroll;

2° Industrial companies in the watchmaking, jewellery, goldsmithing, eyewear, tableware, toy, instrument making and furniture sectors; the nomenclatures of activities and products concerned are defined by order of the minister responsible for industry;

3° Companies bearing the "Living Heritage Company" label within the meaning of Article 23 of Law no. 2005-882 of 2 August 2005 in favour of small and medium-sized enterprises.

IV. - Regardless of the closing date of the financial years and regardless of their duration, the tax credit is calculated per calendar year.

V. - Public subsidies received by companies in respect of expenditure qualifying for the tax credit are deducted from the bases for calculating this credit.

VI. - The same expenditure cannot be included both in the basis for calculating the tax credit and in the basis for calculating another tax credit.

VI bis. - The benefit of the tax credit is subject to compliance with Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid.

For the application of the first paragraph, the partnerships and groupings mentioned in articles 8,238 bis L, 239 quater, 239 quater A, 239 quater B and 239 quater C which are not subject to corporation tax must also comply with the aforementioned Commission Regulation (EU) No 1407/2013 of 18 December 2013. The tax credit may be used by the shareholders of these companies or the members of these groupings in proportion to their rights in these companies or groupings if they meet the conditions for application of this same regulation and provided that they are taxpayers subject to corporation tax or natural persons participating in the operation within the meaning of 1° bis of I of article 156.

VII. - (Repealed).

VIII. - This article applies to tax credits calculated in respect of expenditure incurred by the companies referred to in III until 31 December 2023.

VIII.