2: Determination of taxable profits

I. - Small and medium-sized companies subject to corporation tax or income tax according to a real system may deduct from their taxable income a sum equal to 40% of the original value of assets included in fixed assets, excluding financial costs, allocated to an industrial activity, when these assets fall into one of the following categories:

1° Robotics and cobotics equipment;

2° Additive manufacturing equipment;

3° Software used for design, manufacturing or processing operations;

4° Integrated machines for intensive computing;

5° Physical sensors collecting data on the company's production site, its production line or its transitique system;

6° Programmable or numerically controlled production machines;

7° Augmented reality and virtual reality equipment used for design, manufacturing or processing operations;

The deduction applies to goods mentioned in 1° to 7° acquired new from 1 January 2019 and until 31 December 2020 that have been the subject of a firm order from 20 September 2018. It also applies to the goods referred to in the same 1° to 7° manufactured as from 1 January 2019 and until 31 December 2020 for which the company's management has taken the final decision to manufacture them as from 20 September 2018.

The deduction also applies to the goods referred to in the same 1° to 7° manufactured as from 1 January 2019 and until 31 December 2020 for which the company's management has taken the final decision to manufacture them as from 20 September 2018. The deduction also applies to the goods referred to in the said 1° to 7° acquired as new as from 1 January 2021, provided that they have been the subject as from 1 January 2019 and until 31 December 2020 of an order accompanied by the payment of instalments of an amount at least equal to 10% of the total amount of the order and provided that this acquisition takes place within a period of twenty-four months as from the date of the order.

The deduction is spread on a straight-line basis over the period from 1 January 2019 to 31 December 2020. The deduction is spread on a straight-line basis over the normal useful life of the goods. In the event of the asset being sold or used for a non-industrial activity before the end of this period, the company is only entitled to deduction of the amounts already deducted from income on the date of the sale or change of use, which are calculated pro rata temporis. A small or medium-sized business that uses for industrial purposes a new asset referred to in the first paragraph of this I that has been leased under the conditions provided for in Article L. 313-7 of the French Monetary and Financial Code, pursuant to a leasing contract or under a leasing contract with a purchase option entered into between 1 January 2019 and 31 December 2020, may deduct an amount equal to 40% of the original value of the new asset, excluding financial expenses, at the time the contract was signed. This deduction is spread over the period mentioned in the eleventh paragraph of this I. If the lessor or lessee acquires the asset, it may continue to apply the deduction. The deduction ceases as from the sale or termination by the leasing company of the leasing or rental contract with a purchase option or of the asset and cannot be applied to the new operator.

The company that gives the asset as a lease or rental contract with a purchase option may continue to apply the deduction. The company that leases or rents out the asset with a purchase option may not apply the deduction mentioned in the first paragraph.

II. - For the application of I, industrial activity is understood to be that which contributes directly to the manufacture or transformation of movable tangible property and for which the role of equipment and tools is predominant.

III. III. - This Article shall apply to small and medium-sized enterprises within the meaning of Annex I to Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty.

IV. - The benefit of the deduction is subject to compliance with Article 17 of the aforementioned Commission Regulation (EU) No 651/2014 of 17 June 2014.