This tax credit specifically targets manufacturers of batteries, wind turbines, solar panels and heat pumps. If the initial framework ended in 2025, an extension until 2028 is planned to secure industrial projects. Please note that obtaining approval requires a filing prior to any expenditure commitment.
Are you trying to secure the financing of your factories without misleading administrative procedures? The green industry tax credit is a major tax lever to support your investments in renewable energy. Identifies the conditions for access and the rules of the new European framework to guarantee your eligibility.
- C3IV: What are we talking about?
- Sectors and investments at the heart of the system
- The specific case of suppliers: a condition not to be overlooked
- Current status and future of the C3IV: what should be anticipated?
C3IV: What are we talking about?
Objective: to accelerate the green reindustrialization of France
The Green Industry Investment Tax Credit (C3IV) is a tax credit for investment in the green industry. support companies making specific investments. This mechanism, born from the Green Industry Act, has a clear ambition. France wants to become a productive power again and dominate the European green industry.
Forget about state cheques or conventional subsidies. It's a tax credit that directly reduces the tax bill companies.
The issue goes beyond accounting. The state is trying to break our strategic dependence on abroad. The idea is to building a sovereign economy, capable of producing its own clean technologies.
Who is this tax system for?
This lever is intended for industrial and commercial enterprises ready to invest. The size of the structure doesn't matter here. An innovative SME has as much place as a large industrial group.
A golden rule is required for eligibility. The company must be subject to corporation tax under the actual tax system.
Attention, « firms in difficulty » in the European sense remain on the edge. It is therefore necessary to master the basics of the enterprise finance to validate its strength before starting.
The tax credit principle explained simply
The amount is calculated on investment expenditure, such as the purchase of machinery or the construction of factories. This total erases the tax payable by the company. Mechanical has nothing to do with the calculation of income tax households.
The state wants to see cranes and assembly lines. The aim is to encourage investing in tangible production capacity. We are talking about building or expanding industrial sites.
Sectors and investments at the heart of the system
The four strategic lines of the energy transition
The green industry tax credit targets four priority sectors for the industrial future. This is specifically about the production of batteries, solar panels, wind turbines and heat pumps. These areas concentrate the major fiscal effort.
This targeting responds to an emergency of energy sovereignty. The state wants to decarbonize the economy while drastically reducing our external dependence.
Support covers the entire industrial value chain. This starts from the extraction of raw materials to the final production of products. You must control production on French soil. The objective remains full autonomy of the green sector.
Eligible expenditure: well beyond final equipment
Eligible expenditure is primarily for finished equipment itself. We're talking about battery cells and modules, wind blades or photovoltaic panels. These are the visible products that come out of your plants for transition.
But the device also incorporates the specific essential components. It also covers the production and recovery of critical raw materials. Without these upstream elements, the final equipment cannot exist. It's a global approach to industrial production.
C3IV investment summary
A picture is often better than a long technical speech. Here's the accurate summary of potentially covered investments by the C3IV for your projects.
| Key Branch | Type of investment Eligible | Examples |
|---|---|---|
| Batteries | Production of equipment, components, raw materials | Battery cells and modules, specific components, lithium extraction/recycling. |
| Wind | Production of equipment, components, raw materials | Batteries, blades, nacelles, essential components, specific steels. |
| Solar panels | Production of equipment, components, raw materials | PV cells, inverters, key components, silicon production. |
| Heat pumps | Production of equipment, components, raw materials | Compressors, heat exchangers, new generation refrigerants. |
The specific case of suppliers: a condition not to be overlooked
The 50% turnover rule explained
For companies that produce essential components or critical raw materials, a very specific condition is added. They are not automatically eligible. Their business model is closely scrutinised by the tax administration.
This is the strict rule. They must prove thatat least 50 % of their turnover is achieved with companies operating in the four key sectors.
More specifically, these customers must be located « downstream » production. These are the manufacturers who assemble the finished products.
Why is this condition so decisive?
The logic behind this rule is simple. It aims to ensure that tax aid is actually benefiting the four strategic areas Targeted by the State.
This avoids indirectly subsidising suppliers that are too generalist. For the applicant company, this requires accurate customer mapping. This can become a true blocking point for those with too diverse a client portfolio.
A concrete example for understanding
Let's take a company that makes a metal alloy. She sells it to automobiles and wind turbines. To qualify for the green industry tax credit, it will have to prove that more than half of its sales come from wind turbine manufacturers.
This traceability of final destination of products is therefore a pillar. This is a central element, often underestimated, of the application file for approval.
Current status and future of the C3IV: what should be anticipated?
Understanding the rules is one thing, but know the timetable and developments of the scheme Another, just as important to plan your investments.
The end of the initial framework and the deadline
The green industry tax credit was originally built on a strict framework of the European Union: « Temporary Crisis and Transition Framework » (TCTF).
This temporary framework, and hence the associated tax system, ended on 31 December 2025. It's a deadline.
The consequence is direct. After that date, the Directorate General for Public Finance (DGFiP) could no longer issue new approvals on this legal basis. The window was therefore closed.
Towards an extension: the new CISAF European framework
Yet a new European framework has emerged. The Clean Industrial Deal State Aid Framework (CISAF) has been published mid-2025 to take over and regulate state aid.
The French Government has indicated its willingness to use this text. The objective is extend the C3IV until 2028. A retroactive application to January 1, 2026 is included in the bill.
Impact on companies planning their investments
What can be learned from this situation? The current uncertainty imposes a great caution. Investment projects must be well prepared upstream.
The calendar is more than ever a key factor. The application for approval must be lodged before making any expenditure. This transition period makes decision making difficult for industrialists.
The C3IV imposes itself as a major tax leverage to accelerate your transition to the green industry. Although the scheme is in the process of adapting to the CISAF European framework, you have every interest in anticipate your steps now. A rigorous preparation of your accreditation file remains the key to secure your future strategic investments.
FAQ
How much tax credit can you get for your green investments?
The reference rate is set at 20% of the eligible costs incurred for your industrial project. However, you must know that this percentage may be increased to between 25% and 40% if your production site is located in specific areas, such as regional aid zones (ZAFR) or overseas territories.
What exactly is this tax system for your business?
C3IV is a support measure that takes the form of a tax credit directly attributable to corporation tax you have to settle. Its aim is to encourage the development of new industrial production capacities in France, specifically dedicated to decarbonisation technologies, by reducing the final cost of your productive investments.
What investments allow you to claim C3IV?
In order to benefit from this scheme, it is imperative to invest in the production of equipment in four strategic sectors : batteries, wind turbines, solar panels and heat pumps. You are also eligible if you produce essential components or value critical raw materials, provided you prove that 50% of your turnover comes from these downstream value chains.
