The increased investment allowance: an under-exploited opportunity

Although a long-standing feature of the French tax code, the Investment Allowance(IPR) is still largely unknown to many companies. Yet this “super deduction” plays a crucial role for companies wishing to finance their innovative initiatives. From 1 er January 2025, benefit from a significant advantage with a deduction of up to 40% on your investments.

Unlock an additional value :

The IPR offers an additional deduction for targeted targeted investmentsin patents, R&D with a neutral or positive impact on the environment and energy savings. It is also expanding into other niches such as zero-emission trucks, cybersecurity, and the digitization of payments and invoicing.

It complements existing tax incentives for research and innovation, such as the now well-known withholding tax exemption for research personnel and the deduction for innovation income.

Green investment boosted by IPR in 2025

The IPR reform, applicable to investments made from 1er The new law, which came into force on January 1, 2025, aims to reinforce the transition to a sustainable economy. It goes beyond “simple” energy-saving investments by extending eligibility to four categories of green investment :

• Energy efficiency and renewable energies,

• Zero emission transport,

• Reducing environmental footprint (reduction in raw materials consumption and waste production, product reuse and recycling, decarbonization of industrial production processes, greening and business parks) (new), and

• Digital investment dedicated to reducing environmental footprint (new).

The deduction for these investments with high environmental added value will rise to 40% for self-employed people and SMEs, and to 30% for large companies. This translates into net savings of 10% and 7.5% respectively on fixed assets.

Under the new IPR regime, the technology deduction for investments in R&D and patents will be subject to a single rate of 13.5%. It may be spread over several financial years at an annual rate of 20.5%.

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