Overview
- Lawmakers approved amendments lowering the annual cap from €12,000 to €10,000 and scrapping the first-year enhanced expense allowance.
- The tax credit covers 50% of eligible household service costs and supported 4.9 million households in 2024 at a cost of €6.4 billion, with spending projected at €7.2 billion in 2026.
- Left-wing deputies argued the benefit skews toward higher-income households and pressed for tighter limits, including a €2,500 cap and excluding second homes, which were not adopted.
- Supporters cautioned that deep cuts could push hiring into undeclared work and destabilize domestic employment, emphasizing the credit’s role in formalizing the sector.
- Some opponents, including Éric Coquerel, urged redirecting funds to expand public services and hire additional staff, highlighting a broader dispute over how to reduce tax expenditures.