A tax credit is defined as being above all a tax advantage that individuals can benefit from, if they meet a certain number of criteria. This credit often translates into a reduction of the amount of taxes that you have to pay. It only concerns one small number of people and it would be interesting to know if one is entitled to it in order to be able to realize serious savings. These credits can be granted to both individuals and companies. This measure aims to support a sector of activity, to contribute to sustainable development or to help social welfare.
Who is eligible for a tax credit?
The tax credit offers the possibility of savings, which in a way amounts to earn money. Many people would like to take advantage of it, however, it only concerns people who meet certain conditions, depending on the tax system of the country in question.
In France, the tax credit is applicable to :
- Expenses for work done in your residences. These works must be in the framework of sustainable development such as energy saving work (CITE), thermal insulation for example. This type of expenditure represents the majority of expenses covered by the tax credit, it is applicable to owners, tenants or free residents of the housing in question.
- Expenditures made for to help people in need.
- Expenditures under the development and research in companies.
- Expenditures for film and video game development.
- Interest on loans for the purchase of your principal residence and interest on student loans.
- Employment in sectors where recruitment is difficult
What is a tax credit?
If you meet the required criteria, you are therefore eligible for the tax credit. In practice, this credit is interpreted as either :
- By a direct deduction of the amount you have to pay to the tax authorities.
- By a cancellation of your tax, if the amount of tax is equal to the amount you had to pay (the amount of tax is reset to 0 euro).
- By a reimbursement of the beneficiary from the Direction Générale des Finances Publiques, which differentiates it from a simple tax reduction.
If the beneficiary is not taxablethe entirety of the amount of his tax credit will be reimbursed by the public treasury. However, you should know that if the amount in question is less than 8 euros, it will not be refunded.