ACTUALITÉS

Conditions under which local authorities can amortize equipment subsidies in their budgets:

• Decree No. 2015-1848 of 29 December 2015 defines the duration of depreciation of the equipment subsidies paid when they finance buildings and facilities or infrastructure projects of national interest and carry out the neutralization of the depreciation and amortization of equipment subsidies paid to
• Decree No. 2015-1846 of 29 December 2015 defines the duration of depreciation of the capital subsidies paid by the communes and their public establishments and the neutralization of the depreciation of equipment subsidies by the communes, their public institutions and the departments of the

Through these decrees, two measures emerge:

• The possibility of offsetting the depreciation allowances of the equipment subsidies paid is extended to all the communities – departments, communes, public communal establishments and public institutions of inter-communal cooperation. This discretionary budgetary and accounting system provides flexibility in financing the amortization of the equipment subsidies paid. In fact, depreciation and amortization are compulsory operating expenditure, which is intended to feed the investment section into revenue. The budget neutralization allows to comply with the accounting obligation to amortize without degrading the operating section, an operating revenue being recognized in return for an investment expenditure.
• The duration of depreciation of the equipment subsidies paid is longer when these subsidies finance buildings, facilities or infrastructure projects of national interest. The above-mentioned communities may amortize:
  • over a maximum period of thirty years, the equipment subsidies paid when they finance buildings and facilities.
  • over a period of up to forty years, with equipment subsidies for the financing of infrastructure projects of national interest.