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Extension of tax benefits for electric vehicles
Company directors can breathe easy: the tax benefits associated with company electric vehicles have been extended until the end of 2025, offering valuable continuity in the management of company fleets.
This extension of incentives is part of the government's drive to support the transition to more sustainable mobility. Advantages in kind (AEN) for electric vehicles benefit from favourable tax treatment, enabling companies to optimise their return on investment in the electrification of their vehicle fleets.
50% rebate on AEN maintained
The Benefits in Kind (BIC) reform for 2025 confirms the maintenance of the 50% tax allowance for company electric vehicles, a key measure for companies looking to optimise their ROI while greening their fleet.
Here are the key points to remember:
- Tax optimisation The allowance considerably reduces the total cost of ownership (TCO) of electric vehicles for businesses.
- Salary attractiveness : This measure enables employers to offer a competitive advantage without significantly increasing their social security contributions.
- Ecological transition made easy Tax incentives encourage the adoption of greener fleets, aligning companies' financial and environmental objectives.
What's more, the costs of electric recharging, including the installation of charging points, remain excluded from the NEA calculation, offering a practical solution to the logistical challenges of fleet electrification. This extension until 31 December 2025 gives companies valuable visibility for planning their medium-term investments.
Exclusion of recharging costs from the calculation of the benefit
The extension of benefits in kind for electric vehicles offers companies a major advantage: the exclusion of recharging costs from the calculation of benefits in kind. This measure, confirmed by the government, has a number of significant advantages for companies:
- Reducing operating costs Electricity costs for recharging electric vehicles in the workplace are not included in the calculation of the benefit in kind. This exclusion allows companies to keep their social charges low, thereby optimising their cost structure.
- Encouraging the electrification of fleets By offering free charging with no tax impact, companies are encouraging their employees to adopt electric vehicles, speeding up the transition to more sustainable mobility.
- Administrative simplification : Excluding recharging costs from the calculation simplifies the management of benefits in kind, reducing the administrative burden on HR and accounting departments.
- Enhanced employer appeal The possibility of offering a free top-up with no tax consequences is a powerful argument for attracting and retaining talented people, who are particularly sensitive to the benefits of sustainable mobility.
This measure is part of an overall strategy to stimulate the adoption of electric vehicles in companies.
Extension of measures until 31 December 2025
This extension includes several key measures:
- Maintenance of the 50% allowance on benefits in kind for electric vehicles, capped at €2,000.30 per year. This measure enables companies to significantly reduce the social security charges linked to company cars.
- Exclusion of electricity costs incurred by employers for recharging electric vehicles from the basis for social security contributions. This represents a significant saving for businesses, encouraging the adoption of electric fleets.
- Total exemption from Taxe sur les Véhicules de Société (TVS) for 100% electric vehicles. For a fleet of 10 electric vehicles, this exemption could mean savings of several thousand euros a year.
- Advantageous tax treatment for charging points: no benefit in kind for charging points installed in the workplace, and partial exemption for those installed in employees' homes.
These measures, which are in force until the end of 2025, give companies greater visibility when planning their transition to an electric fleet. Not only do they reduce operating costs, they also reinforce the company's image as an eco-responsible business, a major asset in today's B2B environment.
Clarification from Urssaf: eco-score assessment date
Application of the 50% allowance on benefits in kind (AEN) for electric vehicles is subject to one important condition: the vehicle's eligibility for the eco-score. Urssaf has clarified that this eligibility is assessed on the date the vehicle is made available.
This means that an electric vehicle must be on the official list of eco-scored models at the time it is made available to the employee for the allowance to apply. If the model obtains the eco-score at a later date, this will have no retroactive effect: the allowance will not be granted for the period prior to obtaining the eco-score.
Practical consequences
This clarification has important implications for companies:
- Purchasing and rental planning : Companies must ensure that the electric vehicle models they choose are eco-scored when they are made available.
- Management of existing fleets : If a model is not eco-labelled when it is made available, the company will not be able to benefit from the allowance, even if the model subsequently becomes eligible.
NEAs for internal combustion vehicles revised upwards
The reform of Benefits in Kind (BIN) for company cars in 2025 will bring significant changes, particularly for combustion-powered vehicles. This upward revision of NEI represents a major challenge for companies, having a direct impact on their fleet strategy and budgets.
Increase from 30% to 50% for leased vehicles
The leasing package increases from 30% to 50% of the leasing cost, and from 40% to 67% if fuel costs are reimbursed. This substantial increase will have a direct impact on the ROI of corporate fleets:
- Higher operating costs Companies will have to re-evaluate their fleet budgets to absorb this increase.
- Increased taxation The increase in NEAs will mean a greater tax and social security burden for employers and employees.
- Incentives for electrification : The clear aim of this measure is to encourage companies to adopt greener alternatives.
To optimise their fleet strategy, companies need to :
- Carry out a complete audit of their vehicle fleet
- Consider an accelerated transition to electric vehicles, which still benefit from a 50% allowance
- Negotiate more advantageous leasing contracts to offset the rise in AENs
This reform, which will apply to new vehicles from 1 March 2025, requires careful planning and anticipation on the part of fleet managers to maintain their company's competitiveness.
Increase in purchase cost for vehicles purchased from 9% to 15%
The AEN rate rises from 9% to 15% of the purchase cost, a substantial increase that will have a direct impact on the ROI of company fleets. This increase reflects the government's desire to bring taxation more into line with the actual use of company cars, which often far exceeds the 30% of private use initially estimated.
For companies, this review means :
- An increase in tax and social security charges relating to company cars
- A need to reassess fleet policies to optimise costs
- A greater incentive to turn to more economical and ecological alternatives
Faced with this challenge, companies need to consider practical solutions:
- Fleet optimisation Analysing actual vehicle use to adjust the size and composition of the fleet.
- Transition to electric vehicles : Take advantage of the 50% allowance maintained for electric vehicles until the end of 2025.
- Flexible mobility policy Car-sharing: Consider alternatives such as car-sharing or mileage allowances for certain employees.
This reform, although restrictive in the short term, can become a catalyst for more efficient and sustainable fleet management, aligned with CSR and long-term cost reduction objectives.
Objectives and implications of the reform
The overhaul of the NEA system is pursuing ambitious objectives, while at the same time entailing major implications for the players in the sector. It aims to :
- Stimulate the mass adoption of electric vehicles in company fleets, by aligning tax incentives with national environmental objectives.
- Rebalance taxation between internal combustion and electric vehicles, with a significant increase in rates for conventional engines.
- Encourage more strategic and ecological management of vehicle fleets, by encouraging companies to rethink their approach to professional mobility.
For companies, this reform represents both a challenge and an opportunity. They need to anticipate and adapt their fleet policies quickly, while at the same time offering the possibility of making substantial savings and improving their image in terms of environmental responsibility.
Accelerating the energy transition of company fleets
The NEA reform clearly aims to accelerate the energy transition of company fleets, with major implications for ROI and corporate strategy:
- Reinforced tax incentives The maintenance of the 50% allowance on NEAs for electric vehicles until the end of 2025 offers a significant financial advantage. This measure will enable companies to reduce their social security contributions while preserving employees' purchasing power.
- Cost optimisation The introduction of smart charging in 2025 will enable businesses to optimise their energy costs and simplify the management of their electric fleets.
- Regulatory compliance : Faced with greening quotas for fleets and potential future sanctions, electrification is becoming a strategic imperative for companies.
- Competitive advantage Companies that adopt electric fleets quickly will benefit from a stronger image and a competitive advantage in a market that is increasingly sensitive to environmental issues.
This reform offers a unique opportunity for companies to modernise their fleet while making substantial savings in the long term.
The need to anticipate change for companies and employees
Faced with this reform of the NEA, it is essential for companies and employees to anticipate the coming changes in order to optimise their fleet management strategy and maximise their return on investment. Here are the key points to consider :
- Review of fleet policies Tax relief for electric vehicles: Companies must re-evaluate their vehicle mix in favour of electric models in order to benefit from the tax relief extended until the end of 2025.
- Cost-benefit analysis It is crucial to calculate the financial impact of the new AEN rates on combustion vehicles (50% for flat-rate purchase, 15% for leasing) compared with the advantages maintained for electric vehicles.
- Training and communication Human resources must inform employees of the changes to come and the increased interest in electric vehicles in the workplace.
- Charging infrastructure : Investing in recharging points in the workplace is becoming strategic, as these installations are not considered as a benefit in kind.
- Management of existing contracts Companies must anticipate the end of current contracts to bring them into line with the new regulations, which will apply to new company cars from 1 March 2025.
By adopting a proactive approach, companies can not only comply with the new regulations, but also make substantial savings while contributing to the ecological transition. This anticipation is the key to turning a regulatory challenge into a strategic and financial opportunity.
Practical details of implementation
The new NEA regulations for 2025 require a strategic approach from companies. Here are the key points to consider for effective implementation:
- Anticipating changeBusinesses need to prepare for the new NEA rates, which will come into force at the end of February 2025.
- Tax optimisationThe 50% allowance on AENs for electric vehicles has been maintained until the end of 2025, providing an opportunity for tax optimisation for company fleets.
- Adapting fleet policiesThe European Commission: Companies will have to review their company car policies to bring them into line with the new requirements, particularly as regards the electrification of their vehicle fleets.
By understanding these elements, companies will not only be able to comply with the new regulations, but also take advantage of them to improve their operational efficiency and their responsible brand image.
Expected date of publication of the order
The government plans to publish the decree amending the terms and conditions for valuing benefits in kind (BIN) relating to company cars by the end of February 2025. This imminent publication offers companies a crucial opportunity to optimise their fleet strategy and maximise their return on investment (ROI). The main points to remember are:
- Strategic timing The publication at the end of February will enable companies to plan their investments in electric vehicles effectively for the 2025 financial year.
- Increased visibility The early announcement is in response to a request from the sector, and in particular from full service leasing companies, for greater stability and visibility for businesses.
- Rapid adaptation The new decree: B2B companies need to be ready to adjust their fleet policies as soon as the decree is published to take full advantage of the tax benefits.
- Optimisation opportunities The expected extension of the measures in favour of electric vehicles until 31 December 2025 offers an extended window of opportunity for companies wishing to electrify their fleets.
This imminent publication represents a catalyst for accelerating the transition to greener fleets, while offering tangible tax benefits to companies that are proactive in their approach to fleet management.
Application to existing vehicles and new orders
The reform of benefits in kind (BIC) for company cars in 2025 brings significant changes that companies must take into account to optimise their return on investment (ROI) and meet the specific challenges of B2B. Here are the key points to remember:
- Existing electric vehicles Companies that have already invested in electric fleets will benefit from advantageous continuity. The 50% rebate on the NEA assessment. This stability allows companies to capitalise on their previous investments and maximise their ROI.
- New orders for electric vehicles For companies considering renewing or extending their fleet, the extension of tax benefits until 31 December 2025 offers a strategic window of opportunity. It is crucial to plan orders with this deadline in mind to maximise tax benefits.
- Transition of combustion-powered fleets The electrification of 40% of the fleet from 2025 onwards is a requirement for companies with more than 100 vehicles. This obligation represents a logistical and financial challenge, but also an opportunity to reduce long-term operating costs and improve brand image.
- Charging infrastructure The installation of recharging points in company car parks is becoming compulsory, with one point for every 20 parking spaces. Companies need to factor these costs into their budget planning, while taking into account the tax benefits associated with these installations.
By adopting a proactive and strategic approach, companies can not only comply with new regulations, but also turn these challenges into sustainable competitive advantages.
Advice on adapting to the new regulations
To maximise return on investment (ROI) and meet the challenges specific to B2B in the context of NEA reform, companies need to act strategically. Here are some concrete solutions to help you adapt effectively:
- Reassess your fleet Analyse the current composition of your vehicle fleet and identify opportunities for switching to eco-scored electric vehicles. This will enable you to benefit from the 50% allowance on AENs, which will continue until 31 December 2025.
- Train your teams Organise information sessions for your fleet managers and employees on the new NEA regulations. A clear understanding of the changes will facilitate the adoption of compliant and optimised practices.
- Optimise your contracts Negotiate with your leasing suppliers to obtain advantageous conditions for electric vehicles. Consider flexible contracts to adapt quickly to regulatory changes.
- Invest in infrastructure Electric vehicles: Plan ahead for the deployment of charging points at your sites to make it easier for your employees to adopt electric vehicles. This investment will make your company more attractive and reduce costs in the long term.
- Set up a rigorous monitoring system Implement management tools to accurately monitor the use of vehicles and optimise the split between business and personal use. This will make it easier for you to justify benefits in kind to the tax authorities.
By adopting these measures, companies will not only be able to comply with the new regulations, but will also be able to turn this constraint into an opportunity.
to modernise their fleet and reduce their carbon footprintwhile keeping costs under control.
| Category | Changes in 2025 | Impact on businesses |
|---|---|---|
| Extension of tax benefits for electric vehicles | Maintain the 50% rebate on the AEN, capped at €2,000.30/year | Reducing the cost of electric vehicles |
| Recharging costs excluded from NEA calculation | Reduction in social security contributions, incentives for electrification | |
| Total exemption from Company Vehicle Tax (TVS) | Substantial tax savings for electric fleets | |
| Increase in NEAs for internal combustion vehicles | Leasing package increased from 30% to 50% (67% if fuel costs reimbursed) | Increase in the cost of internal combustion vehicles |
| Increase in purchase cost for vehicles purchased from 9% to 15% | Higher taxes, incentives to switch to electric vehicles | |
| Additional obligations and incentives | Obligation to electrify 40% fleets of more than 100 vehicles | Planning to comply with regulations |
| Obligation to install one terminal for every 20 parking spaces | The need to invest in recharging infrastructure | |
| Objectives of the reform | Encouraging the electrification of fleets | Reducing costs and improving the ecological image |
| Rebalancing taxation between internal combustion and electric vehicles | Increased charges for internal combustion vehicles | |
| Implementation date | Reform applicable to new company cars from 1 March 2025 | Importance of anticipating and adapting fleet management |
Conclusion
In conclusion, the reform of Benefits in Kind (BIN) in 2025 marks a decisive turning point for French companies, giving them a strong incentive to speed up the transition to electric vehicles.
With the continuation of tax benefits for electric vehicles, such as the 50% allowance on NEAT and the exclusion of charging costs, combined with the increase in NEAT for internal combustion vehicles, businesses have a unique opportunity to rethink their fleet strategy. Anticipating these changes, optimising costs and adopting a proactive approach are essential to turn this regulatory challenge into a competitive advantage and contribute to a more sustainable future.
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