France Extends C3IV Green Industry Tax Credit to End-2028

What France's Extended C3IV Tax Credit Covers

France has extended the crédit d’impôt au titre des investissements dans l’industrie verte (C3IV) until 31 December 2028. The scheme targets companies developing industrial projects in four energy-transition supply chains: batteries, wind power, solar panels and heat pumps. It covers the full value chain, including manufacturing of equipment and essential components, as well as production, processing, recovery and recycling of the critical raw materials those industries need.

C3IV is a support for industrial projects, not a subsidy for buying equipment. For example, acquiring or installing rooftop solar panels is not eligible. The precise list of eligible equipment, essential components and critical raw materials was set by an order dated 10 August 2026 and aligned with the EU Clean Industrial Deal State Aid Framework and the Critical Raw Materials Act.

The tax credit rate is 20% for investments in regional aid areas approved under Article 107(3)(c) of the TFEU and 35% for areas approved under Article 107(3)(a), with an additional 20 percentage points for small businesses. The credit is capped at €150 million per project outside assisted zones, €200 million per project in “c” zones, and €350 million per company in “a” zones. Eligible expenditure includes buildings, installations, equipment, machines and underlying land acquired from an unrelated party, as well as patents, licences and know-how under strict conditions.

Before spending begins, companies must obtain prior approval from the French public finance directorate DGFiP, after a conformity opinion from the energy and environment agency ADEME. Applications must be submitted before eligible expenditure is committed and, for property works, before the construction site opens. The decision is due within three months of a complete application, and the credit is applied in fractions as approved investment expenditure is incurred.

How C3IV Positions France in the Green Manufacturing Race

A supply-side manufacturing incentive, not a demand-side purchase subsidy

The exclusion of equipment acquisition, such as rooftop solar panels, shows that C3IV is designed to build French and European manufacturing capacity rather than stimulate end-user purchases. The scheme's alignment with the EU Clean Industrial Deal State Aid Framework and the Critical Raw Materials Act also signals an effort to keep the French programme within approved state-aid boundaries.

Why regional rates and caps will influence investment location

The gap between 20% and 35% assistance rates, combined with the 20-percentage-point supplement for small businesses, gives eligible manufacturers a material reason to consider assisted regions. The project and company caps—€150 million in non-assisted areas, €200 million in “c” zones and €350 million per company in “a” zones—reinforce that regional dimension and protect against oversized claims.

The approval gate makes project sequencing critical

C3IV is not automatic. A company must secure DGFiP approval before committing to eligible expenditure, and the DGE gives an opinion on the project's economic interest using criteria set by decree of 9 August 2026. With a three-month decision window after a complete application, the timeline has to sit inside project planning rather than after the fact.

Applying for C3IV: Rates, Caps and Timing

• Screen against the 10 August 2026 eligibility list. Confirm that your project falls within the battery, wind, solar or heat-pump value chain and that the equipment, essential components or critical raw materials are on the French order before designing the investment plan.
• Do not start eligible spending or construction before filing. C3IV requires prior DGFiP approval, with ADEME's opinion and a DGE economic-interest review. Allow for the three-month decision period from a complete application.
• Model the effective rate for your site. Apply the 20% or 35% regional rate depending on your location, and add the 20 percentage-point supplement if you are a small enterprise; check the annexes of decree n° 2022-968 for the zone maps.
• Run the caps against your project size. Remember the ceilings of €150 million per project outside assisted zones, €200 million per project in “c” zones and €350 million per company in “a” zones; the credit is refundable when it exceeds tax due.
• Sequence your capital plan around the agreement. Because the credit is applied in fractions as approved investment expenditure is incurred, align spending and tax years to maximise cash-flow benefit.