As a reminder, in France, expenditures related to the conception of new collections by an industrial company in the textile, clothing and leather sector qualify for a research tax credit (Article 244 quater B, II, h du CGI).
This tax credit benefit being limited to only industrial companies is compliant with the constitution, according to the French Constitutional Council.
The commercial companies of the textile, clothing and leather sector, including those who outsource the manufacturing of their products to external manufacturers, are not eligible to the “new collections” tax credit.
In fact, a company that outsources the manufacturing of its products to external manufacturers, claims that denying the benefit of this tax credit to commercial companies ignores the right to equality before the law and public charges, as this treatment difference with industrial companies is not justified.
To respond, the Constitutional Council refers to the intention of the legislator being to support the manufacturing industry by promoting integrated economic systems that combine the conception and the manufacturing of new collections.
In this context, the commercial and industrial companies are in different situations, and as a result the difference in treatment is justified and is compliant with the constitution.
