2022 budget: what's planned for individuals

The 2022 budget aims to foster economic growth, with the aim of gradually restoring fiscal balance. Budget 2022 extends the implementation of the

Recovery plan

, including the strengthening of employment measures.

The main measures concerning:

Income Tax Cut: tax scale in order to take account of the effects of inflation on the level of household taxation, the income brackets of the 1.4% for income tax purposes in 2021.

Tax reduction for donations to the most disadvantaged:the increased limit on the income tax reduction for donations to organizations that provide assistance to the most disadvantaged is being extended to donations of up to €1,000 which benefit from a reduction of 75%.

Tax reduction for investment in SMEs: the increase in the reduction, scope of 18% to 25% investment in SMEs, up to €50,000 (€100,000 for a couple) is also renewed.

Tax Credit for Electric Car Charging System Equipment: individuals who equip their home with an electric car charging system receive a tax credit of up to 75% expenditure, within the limit of €300.

Tax reduction for subscribing to a news item: the first subscription of a one-year subscription to a general and political information body is eligible for a tax credit representing 30% spending, with no cap.

Personal Services Tax Credit: the 2022 budget restored the scope of services eligible for the 2021 income tax credit canceled by the State Council in 2020, including for services rendered outside the home, when they are included in a package of services that includes activities at home. This credit will be repaid on a monthly basis, instead of being repaid in one installment with a lag year.

Housing tax exemption: the phasing out of the housing tax wealthier households will continue. These households will benefit from a 65% exemption from their tax in 2022. The permanent repeal of the housing tax, which applies only to the principal residence, is only planned for 2023.

MaPrimRénov' extension: in order to continue to support the energy retrofit of housing, the MaPrimRenovate' is being extended in 2022, but it is reserved for housing that has been built for more than 15 years, with the exception of boiler replacement.

Extension of the "Denormandie" scheme: the proposed income tax reduction for individuals purchasing a rental unit in a degraded older neighborhood is being extended until december 31, 2023.

Tariff shield in the face of rising energy prices: gas sales prices are maintained at their october 2021 level and the electricity price increase foreseen in the february 2022 revision is capped at 4%. The shield will apply from 1^er February 2022 to January 31, 2023.

Recalculation of Disabled Adult Allowance (DAA): the calculation of Disabled Adult Allowance (DAA) is reformed with the creation of a flat-rate allowance on the income of persons living in a couple. This fixed abatement is €5,000 on the income of the spouse who is not a beneficiary of the AAH, plus €1,400 per child. This measure increases the allocation of 110 to €120 on average per month for approximately 130,000 beneficiaries.

Creating income for youth engagement: for young people under 26 without employment or training, this new income will be paid from 1^er March 2022. Its beneficiaries will receive up to €500 per month, in return for 15 to 20 hours of training or support per week, over a period of 6 to 12 months.

Pass'Sport device renewal: set up in 2021 to promote access for young people to sports clubs, back-to-school allowance of €50 per child under means test shall be renewed.

Improving students' standard of living: in order to combat student insecurity, scholarships based on social criteria are upgraded by 1%.

Extension of the exceptional assistance for alternating work for children under 30: Exceptional aid for alternation is being extended to June 2022.

Expansion of the national universal service (SNU): with a view to its generalization, the national universal service (SNU) is deployed for 50,000 young volunteers aged 15-17 expected to stay in cohesion in 2022.

Strengthening the Civic Service: funding will help at least 200,000 young people in civic service mission in 2022. The priority themes of these new missions are: fighting the COVID-19 epidemic, promoting the ecological transition, fostering intergenerational solidarity, acting for the success of all students...

Combating domestic violence: new funds are being allocated to measures to combat violence against women and prostitution.

Continuation of the Recovery Plan: the government is stepping up measures to promote jobs and vocational training for the jobs of the future, and is stepping up its support for Pôle emploi.