The tax encouragement system for forest investment was reformed on January 1, 2023, explains Jean-Hugues de la Berge, associate lawyer at CMS Francis Lefebvre.
By Jean-Hugues de la Berge (Associate lawyer, CMS Francis Lefebvre)
The finance law for 2023 has transformed, strengthened and simplified the tax encouragement system for forest investment, known as “ defi forest .
Previously, it took the form either a tax reduction or a tax credit, depending on the case. The difference: a tax reduction only finds its full effect if the income tax due by the taxpayer exceeds the reduction, while with a tax credit the taxpayer affects the excess.
All eligible forest operations carried out between January 1, 2023 and December 31, 2025, on the other hand, open up to a tax credit, regardless of their nature – purchase of wooded land or shares of certain forest groups (DEFI Acquisition ), forestry work (DEFI Works) or insurance contributions for the storm or fire (DEFI insurance).
an advantage accessible to first -time
For acquisition and work, the level of tax advantage is increased to 25 %. For insurance contributions, the rate of 76 % is maintained, but the expenditure ceiling is noted at 15 euros per hectare.
Expenditure is retained within the limit, unchanged, of 6,250 euros for a single person, 12,500 euros for a couple. Note, moreover, that purchases of wooded land is eligible for the tax credit if they allow a surface of 4 to 25 hectares. And that this fiscal advantage is now accessible to first -time (previously it was necessary to enlarge already owned land units).