France likes to describe itself as the home of luxury, culture and craftsmanship of the highest quality. Behind the shop windows of prestigious houses, in workshops across the provinces and within family-run businesses, there are thousands of craftspeople who carry on centuries-old traditions. Jewellers, instrument makers, potters, watchmakers and upholsterers: they all embody a part of our country’s living heritage. But preserving these rare trades is costly, and they are often under threat from globalisation and mass production.

It was against this backdrop that the arts and crafts tax credit (CIMA) was introduced in 2005. Designed as a cultural and economic policy instrument, it supports businesses that invest in the creation of unique works or small production runs. Extended until 2026, it represents an annual tax expenditure of around 30 million euros for the State and benefits nearly 1,500 businesses, mainly SMEs, but also major names in the luxury sector.

The CIMA is an attractive but demanding scheme. Its implementation is strictly regulated and subject to regular audits. When managed effectively, it is a strategic asset. If misused, it can lead to costly tax adjustments.

A tax credit tailored to support craft-based start-ups

Unlike the research tax credit (CIR), which is aimed at scientific and technological activities, the CIMA focuses on artistic and craft innovation. It is aimed at businesses that design and produce unique items or small batches with high cultural added value.

The underlying idea was simple: if France wishes to preserve its traditional skills, it must provide financial support to those who embody them. The scheme was therefore designed to cover the costs of design and prototyping, which are often a heavy burden for small craft businesses.

The fact that it is regularly extended by Parliament is testament to its strategic importance, even though the National Audit Office has described it as a “niche scheme” with limited budgetary returns but a major symbolic and economic role.

Eligible businesses and activities

The CIMA scheme is aimed at businesses taxed under the actual income basis (income tax or corporation tax). Micro-enterprises are excluded from this scheme.

The initiative is primarily aimed at three categories of stakeholders:

• Businesses practising an artistic craft, as defined in the list set out in the Order of 24 December 2015. This list comprises more than 200 professions, ranging from goldsmithing to featherwork, including musical instrument making and artistic glasswork.

• The Entreprises du Patrimoine Vivant (EPV), a prestigious label awarded by the State to organisations recognised for their exceptional expertise.

• Companies involved in the restoration of protected heritage, which have been included in the scheme since 2017.

All must demonstrate that they allocate at least 30 % of their total wage bill to employees working in the arts and crafts sector. This threshold, which is strictly monitored, is the main criterion for accessing credit.

Eligible expenditure

The scope of eligible expenditure has been defined to cover the entire craft production process:

• the salaries and social security contributions of the staff assigned to the design and production of prototypes,

• depreciation charges on plant and equipment used for the creation of,

• purchases of specific materials and supplies,

• the costs of filing and defending designs,

• the costs associated with producing models and prototypes,

• a part of the outsourcing, where this is directly linked to the design.

However, expenditure on mass production or simple reproduction is excluded. This point is crucial: the authorities systematically check whether the production is unique or limited in order to approve the grant.

Calculation method

Calculating the CIMA is relatively straightforward:

• The standard rate is 10 % of eligible expenditure.

• It has been raised to 15 % for those companies with the EPV certification.

• The credit is capped at €30,000 per year per business.

• As with the CIR, any surplus not set off against the tax due is reimbursed by the State, making it a means of providing direct cash flow support.

CIMA falls under the European de minimis aid scheme, which means that the total amount of public aid received by a company may not exceed €200,000 over three financial years.

Economic impact and key figures

According to budget reports, the CIMA represents an annual tax expenditure of approximately 30 million euros. In 2023, around 1,500 businesses benefited from the scheme, with an average amount of close to €20,000 per beneficiary.

These figures may seem modest compared with the billions available under the research tax credit. But the impact is very real in the sectors concerned: for an SME with 20 employees in the furniture or watchmaking industries, a credit of €20,000 can fund the recruitment of a designer or the production of prototypes.

The Court of Auditors regularly emphasises that CIMA helps to preserve trades threatened by standardisation and international competition. It also sends a political signal: the State is committed to allocating a budget – albeit a limited one – to the preservation of intangible heritage.

Increased scrutiny by the tax authorities

As this is a niche scheme, the tax authorities closely monitor its use. Several aspects are subject to systematic checks:

• the reality of the craft trades practised by the employees;

• compliance with the threshold of 30 % of total wage bill;

• the fact that the works are unique or produced in small batches;

• the quality of the supporting documents provided (sketches, models, prototypes, invoices).

Many corrections stem from confusion between artisanal and industrial production. A jewellery firm producing standardised mass-produced items is not eligible, even if its image is associated with luxury.

These checks are part of a wider trend: in recent years, the tax authorities have stepped up their audits in the areas of charitable giving and tax relief on assets, with a view to preventing and tackling abuse.

Opportunities and limitations of the scheme

The CIMA is a powerful but limited tool: the €30,000 cap may seem low for large companies. Its impact is therefore greatest for SMEs, and more marginal for major luxury groups.

Some stakeholders also criticise the complexity of the evidence required to qualify for the loan. Others see this as a protective barrier: only genuine craft trades – those that are well-documented and transparent – benefit from it.

However, its extension until 2026 leaves some uncertainty: will the scheme be renewed beyond that date? The answer will depend both on its budgetary cost and on the political value placed on the preservation of living heritage.

Practical advice on safeguarding CIMA benefits

For businesses, there are three key recommendations:

• Preparing for the inspection: systematically document each project (plans, sketches, photos of prototypes).

• Check the 30 % threshold: formalise job descriptions and retain payroll records to substantiate the proportion of work relating to the arts and crafts.

• Carry out regular audits: an internal or external audit every two years helps to identify areas of risk and avoid a tax reassessment.

Conclusion

The tax credit for arts and crafts is not a scheme aimed at the general public, but it is strategic. With an annual budgetary cost of around 30 million euros, it accounts for a negligible proportion of the State’s tax expenditure. Nevertheless, it has a considerable leverage effect for businesses that preserve rare skills.

It is a tool that combines several elements: financial support, cultural promotion and a requirement for transparency. For eligible businesses, it offers a valuable benefit, provided they adhere strictly to the rules.

At Qualifisc, we support craftspeople, EPVs and heritage organisations in implementing and securing the CIMA scheme, with a view to combining tax efficiency with the preservation of traditional skills.