The 2027 financial bill (PLF), introduced on October 1st in the Council of Ministers, includes several tax measures that could have real effects on both businesses and individuals. Experts Walid Essafi, specializing in corporate taxation, and Marie Garrandaux, an expert in personal taxation, highlight the key points in the bill. For businesses, the PLF introduces a temporary tax incentive known as increased depreciation for "industry 4.0," designed to encourage industrial companies to update their production equipment. This includes investments in areas like robotics, 3D printing, digital twins, generative artificial intelligence, and advanced analytics. Additionally, the tax credit for investments in green industry (C3IV) will be expanded to new sectors and strategic activities, such as electrical networks, solar thermal, certain battery equipment for electric vehicles, and permanent magnets used in electric propulsion. The PLF also offers a 30% increased depreciation rate for small and medium-sized enterprises (SMEs) on certain investments made between January 1, 2027, and December 31, 2029, aimed at modernizing their production equipment. For micro-enterprises, the rate would be even higher at 60%, applicable to all depreciable assets acquired during that period. If an acquisition is made by one or more employees, the bill also proposes doubling the fixed allowance on the gain realized by the seller upon retirement and reducing transfer taxes for certain sales. For individuals, the PLF introduces a temporary reduction in the transfer tax to encourage the passing of assets between generations. Cash donations made between January 1 and June 30, 2027, to children, grandchildren, or great-grandchildren over 18 and under 50 would be taxed at a single rate of 6%, up to 100,000 euros per donor and recipient. The rate would drop to 5% if the recipient donates at least 1.1% of the amount received to non-profit organizations that assist the most disadvantaged or victims of domestic violence. During the same period, the allowance for certain family donations of cash would be temporarily increased from 31,865 euros to 50,000 euros. The PLF also modifies the contribution-sale regime outlined in Article 150-0 B ter of the General Tax Code (CGI). Previously, gains from deferred taxation on shares received in exchange for a contribution could be written off or deferred under certain conditions. Now, these gains will be immediately taxable if the shares are subject to free transmission, such as through donation or inheritance. However, a staggered payment of the tax over five years may be requested under certain conditions. For non-professional furnished rental landlords, the PLF caps the deductibility of depreciation at 2.5%, with a maximum of 7,000 euros per year and per tax household. For tourism-related furnished rentals, the cap is more restrictive, at 1.5%, with a limit of 5,000 euros per year and per tax household. The treatment of already deferred depreciation will also be changed, with undeducted depreciation no longer deductible from the results of future fiscal years for tax periods ending on or before January 1, 2027. The PLF also lowers the ceiling of the 10% allowance applicable to pensions, reducing it from 4,439 euros to 3,000 euros. This could increase the portion of a retiree's pension subject to income tax for those currently affected by the existing limit. Lastly, the bill changes the rules for students from wealthy households, preventing them from simultaneously benefiting from the APL (a housing aid) if they are attached to their parents' tax household or if their parents can deduct alimony payments. Affected families will need to choose between APL, being attached to the parents' tax household, or allowing alimony to be deductible.