French General Tax Code
In forceCompanies that build or have built, before 1 January 2016, buildings for industrial or commercial use for the needs of their business in the rural regeneration zones mentioned in Article 1465 A may, upon completion of the buildings, take exceptional depreciation equal to 25% of their cost price, with the residual value being depreciable over the normal period of use.
The provisions of the first paragraph also apply to renovation work, carried out before 1 January 2016, in buildings used under the conditions referred to in the same paragraph.
The provisions of the first and second paragraphs apply to companies which, during the last financial year ended on the date of completion of the building or renovation work:
a) Employ fewer than two hundred and fifty employees and have either achieved an annual turnover not exceeding €50 million, reduced or extended where applicable to twelve months, or a balance sheet total not exceeding €43 million. For companies that are members of a group within the meaning of article 223 A or from article 223 A bis, the turnover and headcount to be taken into account are respectively the sum of the turnover and the sum of the headcount of the companies belonging to this group;
b) And whose capital or voting rights are not 25% or more owned by one or more companies that do not meet the conditions set out in a or by companies that meet the conditions set out in a but whose capital or voting rights are 25% or more owned by one or more companies. This condition must be met continuously throughout the financial year. To assess compliance with this condition, the percentage of capital held by venture capital companies, venture capital mutual funds, specialised professional funds falling under the article L. 214-37 of the Monetary and Financial Code, as it stood prior to the ordonnance no. 2013-676 of 25 July 2013 amending the legal framework for asset management, professional private equity funds, free partnership companies, regional development companies, sociétés financières d'innovation and sociétés unipersonnelles d'investissement à risque dans l'entreprise shall not be taken into account, provided that there is no arm's length relationship within the meaning of a and b of 12 of the article 39 between this company and the latter companies or funds. For companies that are members of a group, the condition relating to the composition of the capital must be met by the parent company of the group.
For the buildings mentioned in the first paragraph, the benefit of exceptional depreciation is subject to compliance with Article 17 of 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. For the work mentioned in the second paragraph, the benefit of exceptional depreciation 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.
