French General Tax Code
In forceI.-Companies subject to corporation tax or income tax under an actual taxation system may deduct from their taxable income a sum equal to 40% of the original value, excluding financial costs, of all refrigeration and air treatment equipment using refrigerants other than those mentioned in section 1 of Annex I to Regulation (EU) No 517/2014 of the European Parliament and of the Council of 16 April 2014 on fluorinated greenhouse gases and repealing Regulation (EC) No 842/2006, allocated to their business and included in fixed assets.
The deduction applies to the assets mentioned in the first paragraph of this I acquired as new from 1 January 2019 until 31 December 2022.
II.-The deduction is spread on a straight-line basis over the normal period of use of the assets. If the asset is written off before the end of this period, the deduction is only earned by the company to the extent of the amounts already deducted from income on the date the asset is written off, which are calculated pro rata temporis.
III.-A company that leases a new asset mentioned in I of this article under the conditions provided for in 1 of article L. 313-7 of the French Monetary and Financial Code under a leasing contract or under a lease with a purchase option, entered into between 1 January 2019 and 31 December 2022, may deduct an amount equal to 40% of the original value of the asset excluding finance costs at the time the contract was signed. This deduction is spread pro rata temporis over the normal period of use of the asset.
If the lessor or lessee acquires the asset, it may continue to apply the deduction. The deduction ceases as from the sale or termination of the leasing or hire purchase contract or the asset and cannot be applied to the new operator.
The company that leases or rents the asset with a purchase option may not apply the deduction mentioned in I of this article.
