Overview

• The government is examining adjustments to the 50% tax credit scheme covering 26 household services to secure €40 billion in savings for the 2026 budget.
• Public Accounts Minister Amélie de Montchalin pledged on June 10 that credits for childcare and eldercare will remain fully intact.
• Services like home tutoring, meal preparation and minor repairs could see reduced reimbursement rates under a proposed tiered system.
• The household services tax credit cost the state €6.7 billion in 2024, making it France’s second-largest tax expenditure after the research credit.
• The Cour des Comptes has advised cutting the rate to 40% and lowering expense ceilings to save nearly €1 billion before detailed budget guidelines are released by July 14.