how does the new tax credit work?

Question to an expert

I would like to acquire a wooded plot, can I benefit from a tax advantage?

The finance law for 2023 has transformed, strengthened and simplified the tax incentive system for forestry investment, says ” CHALLENGE Forest “.

Previously, it took the form of either a tax reduction or a tax credit, depending on the case. The difference: a tax reduction only has its full effect if the income tax due by the taxpayer exceeds the reduction, whereas with a tax credit the taxpayer receives the excess.

All eligible forestry operations carried out between 1^er January 2023 and December 31, 2025, on the other hand, give rise to a right to a tax credit, whatever their nature – purchase of wooded land or shares in certain forestry groups (DEFI Acquisition), forestry work (DEFI Works) or contributions to insurance for storm or fire (DEFI Insurance).

An advantage accessible to first-time buyers

For the acquisition and the works, the level of the tax benefit is increased to 25%. For insurance contributions, the rate of 76% is maintained, but the expenditure ceiling is raised to 15 euros per hectare.

Expenses are retained within the limit, unchanged, of 6,250 euros for a single person, 12,500 euros for a couple. Note, in addition, that purchases of wooded land are eligible for the tax credit if they make it possible to obtain an area of ​​4 to 25 hectares. And that this tax advantage is now accessible to first-time buyers (previously it was necessary to enlarge land units already owned).