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French Finance Act for 2019: the two measures you must be aware of to reduce the use of HFC refrigerants

April 2019

To take action against global warming and comply with the climate plan, the Finance Act for 2019, published in the Journal Officiel (French government register) on 30/12/2018, includes two measures to reduce the use of HFC refrigerants:

  1. Financial aid in the form of an additional depreciation of 40% for investments made between 1 January 2019 and 31 December 2022.

Eligible uses: refrigeration, air conditioning and heat pumps.

For an eligible purchase of €100,000 depreciated over 10 years, you can depreciate a further €40,000, resulting in a corporate tax reduction of €13,000 over the depreciation period, supposing a 33.3% tax rate.

  1. Implementation of a tax on HFCs from 2021. This tax will concern HFC purchases targeted by the F-Gas regulation, i.e. fluorinated greenhouse gases (R404A, R134a, R449A, R410A etc.), other than regenerated or recycled gases. The incremental tax will be €15 / tonne CO2 equivalent in 2021 increasing to €30 / tonne CO2 equivalent in 2025.

The additional depreciation and future HFC tax are mechanisms designed to incite companies to invest in durable technology and replace equipment containing HFCs. Such renovations can help reduce a plant’s carbon footprint.

Please contact us if you would like advice on our ILICO2 solutions: durable, low carbon impact technologies suited to your processes which contain natural refrigerants (CO2, NH3, hydrocarbon) or pure HFO (R1234ze).

As a leading and committed player in the refrigeration sector with over 1,000 natural refrigerant systems installed, ENGIE Axima provides vital support to help you make the right decisions in a rapidly changing and complex regulatory environment.