Updated on
03/01/2025
CO2 Tax Credit (CI-CO2)
What is the CI-CO2? — The CO2 Tax Credit (CI-CO2) is a recent government initiative that aims to help many of the employees and pensioners in 2024. It is designed to offset the cost of the CO2 tax for those with lower incomes.
What led to the introduction of the CI-CO2? — The tripartite agreement from March 2023 introduced several aids for employees and pensioners, including a tax reduction through the conjuncture tax credit and adjustments to the tax scale. A less discussed but upcoming aid is the CO2 tax credit, intended to offset the cost of the CO2 tax for lower salaries as of January 1, 2024.
Who is eligible for the CO2 tax credit, and how is it calculated?
To be eligible for the CO2 tax credit (CI-CO2), individuals must meet the following conditions:
- Eligibility Criteria:
- Have an annual gross income up to 79,999 €.
- Hold a tax card with the mention "CIS: OUI".
- Be an employee, pensioner, or self-employed individual.
- How much is the credit?
- See the formulas below
How does the CI-CO2 impact different income levels?
- For 2024, individuals earning up to 40,000 € annually receive the full 168 € credit.
- For 2025, the full credit increases to 192 € annually for the same income group.
- For individuals earning 40,001 € to 79,999 €, the credit decreases progressively based on income, with a steeper reduction in 2025 due to the updated formula.
- No credit is granted for gross salaries exceeding 79,999 € annually.
For example:
- 2024: An individual earning 50,000 € gross annually receives approximately 126 € per year.
- 2025: An individual earning 50,000 € gross annually receives approximately 144 € per year.
How does the CI-CO2 interact with other factors affecting income? — Although the CI-CO2 is intended to increase purchasing power, it is subject to limitations. It will be affected by the reduction of the employee tax credit at the beginning of 2024 and the increase of the CO2 tax from 30 € to 35 € per ton of carbon on January 1st.
How is the CI-CO2 calculated?
2024 Formula:
2024 Formula:
- 936 € to 40,000 € gross annually: The CI-CO2 is 168 € per year.
- 40,001 € to 79,999 € gross annually: The credit is calculated as:
CI-CO2 = 168€ − (gross salary − 40,000) × 0.0042. - 80,000 € and above: No credit is granted.
2025 Formula (Updated):
- 936 € to 40,000 € gross annually: The CI-CO2 increases to 192 € per year (+24 € compared to 2024).
- 40,001 € to 79,999 € gross annually: The credit is calculated as:
CI-CO2 = 192€ − ( gross salary − 40,000) × 0.0048. - 80,000 € and above: No credit is granted.
What are the eligibility and payment conditions for the CI-CO2? — To be eligible for the CI-CO2 tax credit, individuals must have a tax card with the mention "CIS: OUI". The CI-CO2 tax credit for employees is paid monthly by the employer in accordance with the employee tax credit (CIS) procedure.