During the discussion of the « Croissance, activité et égalité des chances économiques » Law (“Macron Law”) in the French Parliament, the Senate adopted a measure aimed at boosting private investment. This measure enables companies investing in the industrial production to benefit from a corporate income tax (“CIT”) reduction through an extra-depreciation of certain goods.

The French Tax Authorities have published administrative guidelines on 21 April 2015 providing clarifications on the scope of the measure as well as the calculation method and the implementation of the measure.

Please note that these administrative guidelines are immediately applicable.


Companies could deduct from their taxable result a sum equal to 40% of the original cost of the good (financial charges aside) used for their activity when such goods are manufactured or purchased between 15 April 2015 and 14 April 2016.

This measure would also benefit to companies renting such goods in application of a leasing contract, or a rental contract with an option to purchase the good, concluded during that period of time.

The deduction would be spread over the normal period of use of the good.

In the short term, instead of deducting 100%, companies would now deduct 140% of the value of the purchased, manufactured or rented goods.

For companies subject to CIT at the normal rate (i.e 33,1/3%), this measure would ensure a tax reduction of 13% of the invested value.

Goods covered by the measure

Goods covered by the measure are those eligible for accelerated depreciation in application of article 39 A of the French Tax Code (precision made that the depreciation doesn’t have to be effectively used by the company to benefit from the measure) and covered in one of the five following categories listed in the Bill:

  • materials and tools used for industrial  operations consisting in manufacturing or transforming;
  • material-handling equipment;
  • facilities designed for water treatment and atmosphere sanitation;
  • facilities producing steam, heat, or energy excluding facilities used for activities benefiting from a regulated buying  production tariff;
  • material and tools used for scientific or technical research purposes.

 When software is inseparable from equipment qualifying for the deduction, it also benefits from the measure. The same applies to software contributing to industrial manufacturing and transformation operations.  

Discussion of the Macron Law should continue at the Senate between 4 and 12 May and should go back to the National Assembly during June 2015.