Expertises > Fund > Tax credit for investment in green industry (C3IV)

Tax credit for investment in green industry (C3IV)

What is the Green Industry Investment Tax Credit (C3IV)? 


Effective from 1 January 2024 (Finance Law 2024), the Tax Credit for Investment in Green Industry (C3IV) is a tax credit designed to accelerate the establishment of production sectors specialising in decarbonisation technologies in France. We reported on these developments a few months ago (Finance Bill 2024) and commented on their positive impact on the taxation of French businesses well ahead of a final decision. 


The C3IV aims to support new industrial investment projects in four key sectors of the energy transition: 

  • battery production, 
  • the production of solar panels, 
  • but also the production of wind turbines, 
  • or heat pumps. 


It is part of the Green Industry Act, which aims to reindustrialise the country and make France a major player in green industry in Europe, while continuing to focus on research and development. 


What is the aim of this new tax scheme? 


Encouraging innovation and giving companies a tax credit to help them become leaders in the green technologies needed to decarbonise and green existing industries. By positioning itself as one of the most effective incentives for supporting and transitioning green industries in Europe, the C3IV is becoming an essential lever in making this environmental commitment a reality. The C3IV is a tax scheme that complements those already in place for innovative companies, such as the CIR, CII and JEI. 

To find out how we can help you unlock the innovative potential of your business, contact us. 

What does the notion of “green industrymean in practice? 


Green industry” covers two major families of activities: 

  • The creation of green industries: Establish and expand new industries that provide goods and services that enable the decarbonisation of our economy. 
  • Decarbonising existing industry: Enable all existing industries, regardless of their sector, size or location, to green their operations and support them in this process”. 


What kind of expenditures will be covered by C3IV? 


The C3IV is awarded to companies based in France that are involved in : 

Tangible fixed assets: tangible investments (buildings, installations, equipment, machinery, land) needed to operate the eligible teams. 

Intellectual property rights: intangible investments (patents, licences, know-how or other intellectual property rights) in one of the four technologies mentioned above.  


  • Specifically, expenditure eligible under C3IV is that required for : 
  • The production of battery cells and modules, wind power, solar panels and heat pumps, 
  • The production of essential components designed and used primarily for the production of this equipment, 
  • The production or recovery of the critical raw materials needed to produce the equipment and components defined above. 


What kind of activities are involved ?


  • Equipment production 
  • Production of essential components for this equipment 
  • Working with raw materials essential to equipment or components 


Detailed lists of eligible equipment and components available on the government website 

If you are in type 2 or 3, you need to prove that at least 50% of your sales are made with companies further down the manufacturing cycle. 


What are the other conditions? 


Companies must meet a number of conditions to qualify for C3IV: 

  • Not having just moved to France from an EU country to invest in green energy. 
  • Not to relocate the investments made within 2 years of obtaining the C3IV certificate. 
  • Operate the investments covered by the scheme for at least 5 years (3 years for SMEs).


What are the C3IV rates and limits ?


This tax credit is directly deductible from the tax due for the year or financial year in which the “eligible” expenditure is incurred. Otherwise, it is refunded for the part exceeding the tax payable. 

Its “standard” rate is 20%. 


However, it can be increased to between 25% and 40%, depending on the status of the beneficiary company (VSE/SME/non-VSE) and whether it is located in a regional aid area (ZAFR), in the outermost regions or in an investment aid area (ZAI). 

Some limits will also be introduced: 

  • An “ordinary law” limit of €150 million per company, which can be increased to between €200 million and €350 million for investments by SMEs in ZAFRs and investment aid zones, in accordance with the European aid framework.


In practice, how do you apply for approval?


The accreditation service is open from 27 September 2023, allowing companies to anticipate and submit their accreditation applications at

Applications are examined by the Direction Générale des Entreprises (DGE) in collaboration with the Direction Générale des Finances Publiques (DGFIP) and the Agence De l’Environnement et de la Maîtrise de l’Energie (ADEME). 


3 additional files must be included in the application 

  • General presentation of company and requirements, 
  • Then a full presentation of the investment project and its viability. 
  • And lastly, the environmental benefits and obligations


The approach to be implemented




  • Decide to invest 
  • C3IV aptitude tests on DGFiPs special C3IV portal: 

Q&A and C3IV calculation simulator created and updated 




  • Application for approval: 
  • Demand study: DGFiP, DGE and ADEME 
  • Response within 3 months: Approval granted and guarantee of the amount you will receive 


Claim and payment 


  • A tax return indicating the amount of money invested in the CAPEX during the year. 
  • For the year in which the investment plan expenditure is incurred, the amount of IC is deducted from corporation tax. 

ABGI France and its expert innovation consultants can support you in a number of areas 


Firstly, the preparation phase of the application for approval 


  • Assistance in selecting the project to be presented, 
  • Gathering the information needed to process the application for approval, 
  • Assistance with the analysis and drafting of all technical and/or financial documentation (co-production by your teams and ABGI consultants), 
  • A reminder of the steps you need to take to submit your application. 
  • Then, the preparation of tax returns 
  • Preparation and assistance with the drafting of tax returns for tax credits for investment in green industry (C3IV) on the basis of ABGi recommendations validated by you, 
  • Annual filing with the tax authorities by you under our supervision, 
  • Assistance with the preparation of all documents required following approval of the investment project (in the event of an audit). 


Finally, relations with the tax authorities 

  • Assistance in preparing exchanges with the tax authorities in direct relation to the Tax Credit, which is the subject of this document.