Collective Mechanization Tax Credit: Explained

by Archynetys Economy Desk

The tax credit for collective mechanization is a project led in particular by Fncuma and its president Marine Boyer. The goal is simple: reduce mechanization costs. In France, these reach almost 30% of operating costs. In comparison, it is 12 to 25% among our European neighbors. The system aims to reduce costs, encourage more responsible use of agricultural equipment, but also move towards collective purchasing of equipment. Since 1979, farmers have benefited from an exemption from capital gains made on the sale of agricultural equipment. A device facilitating individual consumption.

A direct tax credit for agriculture

The tax credit for collective mechanization will only benefit Cuma members. Please note, it will not be Cuma which will be helped, but directly the farmer. This credit is bill assistance and will deduct 7.5% of billed expenses.

A limit is still put in place. €3,000 per year and per operator with a minimum threshold of €500. The budgetary cost of the measure is estimated at 17 million euros per year.

For the moment, nothing has been done. The text must now be examined by the Senate before final adoption of the bill.

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