Electric vehicle taxes and bonuses for businesses
Companies are increasingly being encouraged to green their vehicle fleets. Electric vehicles are emerging as a strategic alternative, not only to reduce their carbon footprint, but also to benefit from an advantageous tax framework. The French government has introduced a number of measures to encourage the adoption of electric vehicles. However, the corporate tax framework for electric vehicles is constantly evolving, raising questions about its future. What schemes are currently in force? How can companies take advantage of them to facilitate their transition to electric vehicles? Are benefits in kind being called into question?
Why are companies interested in electric vehicles?
Companies are showing increasing interest in electric vehicles, motivated by a combination of economic and ecological benefits. In financial terms, they benefit from a significant reduction in operating costs, thanks to lower running and maintenance costs. In addition, tax incentives such as tax exemptions, and financial assistance such as the ecological bonus, reinforce the economic appeal of these vehicles.
The adoption of electric vehicles also enables companies to comply with new environmental regulations, particularly in low-emission urban zones (ZFE). This approach is part of a broader strategy of social and environmental responsibility, enhancing the company's image with its customers and partners. Finally, offering company electric vehicles can be seen as an attractive benefit for employees, contributing to the enhancement of human resources.
For companies, switching to electric vehicles represents an opportunity to reconcile economic performance, regulatory compliance and ecological commitment.
Tax exemptions and reductions
Electric vehicles are exempt from the Taxe sur le Véhicules de Société (TVS), offering significant savings on annual ownership costs. Plug-in hybrids emitting less than 21 g/km of CO₂ also benefit from this exemption.
From March 2025, an annual contribution will be introduced for companies with a fleet of more than 100 light vehicles, to stimulate the adoption of low-emission models. The tax will be calculated on the basis of the gap between the actual share of these vehicles in the fleet and a minimum threshold, set at 15% for 2025 and set to increase progressively. Companies meeting or exceeding this target will be eligible for a total exemption or even a tax credit, offering financial leverage to players already committed to the transition to more sustainable mobility.
Benefits in kind for employees
The government has announced a revision of the basis for calculating benefits in kind, which will rise from 30% to 50% of the total annual cost of the vehicle for leases (including maintenance and insurance), and from 9% to 15% for purchased vehicles.
100% electric vehicles meeting the government's “eco-score” will benefit from an additional tax allowance of 70%, a criterion which limits this advantage to models manufactured in Europe. What's more, electricity used for recharging is excluded from the calculation when used at work, while at home, only half the consumption is taken into account.
Depreciation (AND - non-deductible depreciation) and tax reductions
Companies can write off their electric vehicles from €9,900 to €30,000, (compared with €18,300 for conventional combustion vehicles), depending on the rate of CO₂ emissions. This arrangement enables a more advantageous discal deduction, optimizing the total cost of acquisition.
VAT, on the electricity used to recharge electric vehicles is 100% recoverable, which remains a significant saving on running costs. For rechargeable hybrids, 0% of VAT on petrol and 100% on electricity are deductible.
This higher ceiling enables companies to write off a larger proportion of their investment, while reducing the tax burden. What's more, in the case of leased vehicles, non-deductible depreciation is determined according to the duration set by the leasing company, generally over 5 years, guaranteeing optimized, predictable management of tax charges.
Financial aid and subsidies
To encourage companies to adopt electric vehicles, several financial schemes have been put in place, reducing both acquisition and running costs.
Energy Savings Certificates (CEE)
Since January 1ᵉʳ 2025, dedicated financial support has facilitated the purchase of fully electric vehicles. To be eligible, the vehicle must be new or from a conversion, with a minimum lease period of 24 months. The aid mechanism is based on a specific calculation, converting cumulated kWh into cumulated MWh, then applying a specific coefficient. For a commercial vehicle, for example, this calculation can result in a subsidy of several tens of thousands of euros. This scheme represents a significant advantage for companies managing large fleets, by reducing part of the cost of acquiring low-emission vehicles.
Subsidies for the installation of charging stations
The electrification of a fleet is not limited to the acquisition of vehicles: it also involves the installation of appropriate infrastructures. To this end, the Advenir program offers subsidies to companies wishing to install charging stations on their sites. To be eligible for this subsidy, the installation must be carried out by an Advenir-certified professional and comply with a set of specifications. To find out more, visit the Advenir website.
What's more, some local authorities offer additional grants to encourage this transition.
Please note that the conversion bonus and the ecological bonus are no longer available to companies as of December 02, 2024.