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Exceptional conversion premium: key points
The COVID-19 crisis has dealt a terrible blow to the French automotive sector, which had already been struggling for several months. To save this part of our economy and the hundreds of thousands of jobs it represents, yesterday we launched a vast support plan to make our automotive industry greener and more competitive!
Which vehicles are eligible for the exceptional conversion premium?
Nearly 50% of models currently on the road are eligible for the exceptional conversion premium.
How much is the exceptional conversion premium?
- For individuals: The amount of the bonus will be €3,000 for combustion vehicles (petrol and diesel) and €5,000 for electric or plug-in hybrid vehicles.whoseautonomy is greater than 50 km.
- For businesses: For legal entities, the current premium is doubled for electric and plug-in hybrid light commercial vehicles.
| Prime à la conversion | Véhicule électrique neuf | Véhicule électrique d'occasion |
|---|---|---|
|
Companies (VP)
|
2 500 €
|
2 500 €
|
|
Taxable income > €18,000 per unit
|
2 500 €
|
2 500 €
|
|
Reference tax income < €18,000 per part
|
5 000€
|
5 000€
|
Is retrofitting eligible for the exceptional conversion premium?
Yes, the retrofit is eligible for the exceptional conversion premium. The conversion of an internal combustion engine into an electric motor, known as the electrical retrofit The "new electric vehicle" scheme gives you the same access to the conversion premium as the purchase of a second-hand electric vehicle.
Would you like to drive a cleaner vehicle? We can help. The ecological bonus and the conversion premium have been increased: pic.twitter.com/TwsJ7z2AYm
- Emmanuel Macron (@EmmanuelMacron) May 26, 2020
Background: what is the conversion premium?
The conversion allowance is a government subsidy designed to help the French replace an old vehicle with a less polluting one (pre-1997 petrol or pre-2001 diesel). To qualify for the conversion allowance, the new vehicle had to be a more recent petrol or diesel vehicle (new or used) or an electric or rechargeable hybrid vehicle.
What are the amounts?
The amount of the conversion premium depended on the status of the household: non-taxable or taxable. The amount was also increased for heavy drivers (more than 60 km per day or with a reference tax income of €6,300 or less per unit).
The conversion premium could therefore reach 5,000 for the most modest households.
| Prime à la conversion | Véhicule électrique neuf | Véhicule électrique d'occasion |
|---|---|---|
|
Taxable household
|
2 500 €
|
2 500 €
|
|
Non-taxable household
|
2 500 €
|
2 500 €
|
|
Reference tax income ≤ €6,300 per part and non-taxable heavy drivers (+60 km/day)
|
5 000€
|
5 000€
|
Good to know: Conversion premium scale applicable for 2022 is now available.
A subsidy that's a victim of its own success
The conversion allowance has been a huge success in France, but has led to a number of abuses. According to Elisabeth Borne, "a few dozen French people have bought vehicles costing more than €50,000" by taking advantage of this scheme, while others have bought "not very recent diesel cars". The aim was to move towards less polluting vehicles, so diesel vehicles, among others, were purchased. In 2019, 48 % of applications were awarded to diesel-powered vehicles...
The scheme was already a great success in 2018, but 2019 has been a record year. More than 220,000 applications have been submitted since the beginning of the year, which is as many as in the whole of 2018. The budget forecasts have been revised upwards, but it's not enough. We needed to change the way the conversion premium was awarded.
The 2020 conversion premium in brief
The conversion premium has therefore been modified for August 2019. The latest decree signed by François de Rugy, Minister for the Ecological Transition, provides for tougher conditions for obtaining it and lower amounts granted.
What changed in August 2019
- The conversion premium no longer depends on whether you are "taxable" or "non-taxable": the amount will be higher for French people whose reference tax income is less than €13,489 per unit.
- The bonus no longer applies to vehicles costing more than €60,000.
- The vehicles purchased will have to have CO2 emissions of less than 117 grams per kilometre, compared with the current limit of 122 grams.
- Vehicles with a Crit air 2 sticker registered before 1 September 2019 will no longer be eligible at all for the conversion premium, thus excluding from the scheme all diesels registered before that date.
On the other hand, flex-fuel vehicles running on E85 superethanol will be favoured because their eligibility will take into account a reduction of 40 % on their CO2 emissions.
| Prime à la conversion | Véhicule électrique neuf | Véhicule électrique d'occasion |
|---|---|---|
|
Companies
|
2 500 €
|
2 500 €
|
|
Reference tax income > €13,489 per unit
|
2 500 €
|
2 500 €
|
|
Reference tax income < €13,489 per part
|
5 000€
|
5 000€
|
Note that this aid can still be combined with the environmental bonus 2023.
Changes to the vehicle conversion premium from the beginning of August
Following the great success of the plan reserved for the first 200,000 customers as part of the support for the automotive industry and the acceleration of the conversion of the most polluting vehicles, the Government is defining a new conversion bonus scheme applicable to the first 200,000 customers. from 3 August.
In fact, the exceptional conversion allowance under the recovery plan was a great success at the end of July, benefiting 200,000 French people. As a result, the exceptional conversion bonus scheme under the recovery plan will be adapted from August onwards.
A transitional arrangement has been put in place to allow eligible vehicles ordered up to Monday 3 August to benefit from the exceptional scheme, with 3 months allowed for the vehicle to be invoiced.
From 3 August, the Government will continue to offer a strong incentive in the form of a conversion premium. To enable as many households as possible to benefit from this measure, all vehicles classified as Crit'air 3 or older (i.e. petrol vehicles registered before 2006 and diesel vehicles registered before 2011) will remain eligible for scrappage.
The conversion bonus scale will be the same as before the exceptional support plan, in line with the government's desire to make a special effort to help the poorest households buy cleaner vehicles.
Please note: this scale applies from 3 August 2020 to 30 June 2021 inclusive.
| Voiture particulières éligibles à l'achat (pour bénéficier de la prime à la conversion) | Personne physique RFR ≤ 6 300 € ou RFR > 13 489 € gros rouleur | Personne physique RFR < 13 489 € | Personne physique RFR > 13 489 € | Personnes morales |
|---|---|---|---|---|
|
Electric vehicles and plug-in hybrid vehicle range > 50 km
|
5 000 €
|
2 500 €
|
2 500 €
|
2 500 €
|
|
Crit'Air 1 thermal vehicle emitting less than 137 g C02/km
|
3 000 €
|
1 500 €
|
|
|
|
Crit'Air 2 thermal vehicle emitting less than 137 g C02/km and registered for the first time after 01/09/2019
|
3 000€
|
1 500€
|
|
|
What do you think of these changes? Don't hesitate to ask us your questions.
