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Budget 2025: the descent into hell of gas boilers continues

Fate, or rather political decisions, are against gas boilers. In mid-2023, the government had simply considered banning them in the short term as part of its decarbonization policy. An avenue which had sparked an outcry before its outright abandonment, in particular to preserve the industrial sector of manufacturers. The fact remains that bad news is piling up for this method of heating.

Since January 1, 2023, these boilers have been removed from the MaPrimeRenov system which granted generous subsidies. A year later, they were no longer eligible for Energy Savings Certificates (EEC), this system financed by energy suppliers which could grant up to 420 euros in aid for this equipment. It was then that at the beginning of June 2024 a draft decree planned to remove from July 1, 2024 the most virtuous gas boilers, those with Very High Energy Performance (THPE) from the scope of VAT reduced to 5.5 %.

Compliance with European Union law

The professionals were obviously moved by this. Under the banner “Don’t touch my 5.5% VAT”the French Building Federation then recalled that these boilers allowed CO2 savings of up to 30% and constituted, in certain configurations (old housing, cold areas, etc.) the only technical possibility. The dissolution brought a respite to the application of this measure but the Barnier government confirmed that it would indeed come into force. The existing reduced rates, at 5.5% and 10% for the installation and acquisition of a boiler (depending on its energy performance) would increase to 20%. The government explains that this is a “compliance” with developments in European Union law which excludes reduced VAT rates for the supply and installation of boilers using fossil fuels. A measure which should bring in nearly 200 million euros to the state budget. Please note: maintenance or repair work on existing boilers is not affected and will remain eligible for reduced rates.

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