Aids
First of all, let's take a look at the assistance available for each status. As electric cars are considered to be an effective way of combating pollutiongovernment policies ensure that their purchase is subsidized through bonuses or grants.
These grants vary according to your profile: individual or company.
Find out more - Aid for the purchase of an electric vehicle
The ecological bonus
For the year 2024, the terms and conditions of the ecological bonus in France for the purchase or lease of an electric car, an electric van, or electric two- or three-wheeled vehicles and quadricycles have changed. Here are the updated key points:
Electric cars and vans
- For private customers:
The ecological bonus depends on the vehicle's engine and purchase price. The amount of aid is set at 27% of the purchase cost, including all taxes, with a ceiling of 4,000 euros for households with a reference tax income per unit of over 15,400 euros. For those with an income of 15,400 euros or less, the maximum ecological bonus remains 7,000 euros. Eligibility conditions include that the vehicle must run exclusively on electricity or hydrogen, and have a purchase price of less than 47,000 euros (incl. VAT).
- For vans :
The eco-bonus for new vans is set at 40% of the acquisition cost (incl. VAT), in line with the same eligibility criteria as for passenger cars.
Two- and three-wheeled vehicles and electric quadricycles
- Two- and three-wheeled electric vehicles and quadricycles, provided they don't use lead batteries, have also been eligible for an ecological bonus since January 1, 2017.
Overseas residents
- Residents of the French overseas departments and territories benefit from an additional 1,000 euros of eco-bonus, provided the vehicle is driven in the overseas department for at least 6 months after purchase.
Steps
- The ecological bonus can either be deducted directly from the purchase price by the dealer, or reimbursed after purchase if you so request. The claim must be made no later than 6 months after the vehicle's invoice date or, in the case of a lease, within 6 months of the first rental payment.
The conversion bonus
The "prime à la conversion" is a government subsidy that enables low-income households to scrap their old vehicle and replace it with a less polluting model, in exchange for financial assistance.
For an individual, this aid allows you to benefit from :
- 2,500 if RFR/unit between €14,089 and €22,983
- 6,000 if RFR/p between €6,358 and €14,089 and "heavy user "*.
- 6,000 if RFR/p less than €6,358
For legal entities, the conversion premium is €2,500.
Read also - Conversion bonus
Local assistance
Regional or local grants are complementary to the ecological bonus and the conversion premium. They are set up by regions or cities to help motorists reduce the cost of buying an electric vehicle. They are by definition local, and are subject to a number of conditions. We've summarized the subsidies available locally in this table.
Also read - Regional aid for electric cars
| Location | For whom | Maximum amount of assistance | Comment |
|---|---|---|---|
|
Île-de-France |
Company |
6 000 € |
Île-de-France regional aid: cash purchase. For companies only. |
|
Bouches-du-Rhône |
Individual |
5 000 € |
Bouches-du-Rhône assistance: Cash purchase. LCVs are excluded from the scheme. |
|
Normandy |
Individual |
6 000 € |
Métropole Roule Propre. Subject to income. LCVs are excluded from the scheme. |
|
Occitanie |
Individual |
2 000 € |
Income conditions apply. Cash purchase or lease. LCVs are excluded from the scheme. |
|
The Arve Valley |
Company |
from €3,000 to €5,000 |
Cash purchase |
|
Greater Lyon |
Company |
5 000 € |
Assistance from Greater Lyon is available exclusively for LCVs. |
Tax advantages for electric vehicles
This is where the subject can become more complicated. When you buy an electric vehicle as a company, the tax system is very advantageous.
Vehicles purchased by companies or company vehicles (passenger cars) have several passenger seats. Commercial vehicles, on the other hand, are limited to one or two front seats.
- We don't recover VAT on it
- Maximum depreciation bracket : electric cars can be written off up to €30,000. This exceptional tax measure is designed to help companies give preference to electric cars when purchasing vehicles.
- Battery depreciation : In certain cases, you may be able to write off your vehicle's battery.
- Exemption from tax on the use of passenger vehicles for economic purposes: In theory, any company owning a passenger car is subject to the tax on the use of passenger vehicles for economic purposes. However, to support electric vehicles, companies are not required to pay this tax when they own a 100% electric vehicle.
- Exemption from vehicle registration fees: Half of France's regions have voted to offer free or virtually free vehicle registration when purchasing an electric vehicle.
- Free parking : In several French cities, you can park for free free parking when you own an electric vehicle. This is particularly the case in Paris.
Read also - Electric vehicle taxation: your advantages
Good to know: these measures only apply to passenger vehicles. The commercial vehicles or passenger transport vehicles are subject to specific taxation.
Benefits in kind
When a company provides one of its employees or its director with a private vehicle, it will have to assess what is known as a benefit in kind for its real value. This benefit will then be included in the driver's income in the same way as a salary, and will be subject to social security contributions and income tax.
In the case of electric cars, the rules are specific: an allowance an allowance of 50% on the total benefit in kind (total cost). This deduction is limited to €1,800 / year.
Kilometric allowances
When you use your private car for work, your employer is supposed to pay you what are known as mileage allowances. For the company, these payments are tax-deductible, and you pay no tax on the use of private cars for business purposes. These reimbursements are exempt from income tax, unless you have opted for business expenses.
Good to know: in this context, it's important to keep ALL the supporting documents you need to prove the reality of your travels.
Who should buy the vehicle? The company or the individual?
It's a strategic question to ask yourself before taking the plunge. Let's take a concrete example.
Mr X is a self-employed consultant. He has a SASU and works in Paris in the Île-de-France region, and is planning to buy an electric vehicle. Mr. X intends to use the vehicle for both business and personal travel. He is not eligible for the conversion bonus. He travels 60 km/day with his vehicle.
Should he buy it in his own name or in his company's name? Let's compare the two scenarios.
| Company | Individual | |
|---|---|---|
|
Vehicle purchase price |
40 000 € |
40 000 € |
|
Ecological bonus |
0 € |
7 000 € |
|
Regional aid |
6 000 € |
NC |
|
Amortization |
30 000 € |
NC |
|
VAT |
0 € |
NC |
|
Tax on the use of passenger vehicles for economic purposes |
0 € |
NC |
|
Car registration |
0 € |
0 € |
|
Mileage allowance |
NC |
He works 200 days a year and therefore travels 12,000 km/year with his vehicle in the course of his work.
|
|
Benefits in kind (actual valuation) |
Car: €8,000 / year Maintenance: €200 incl. VAT/year Insurance: €1,000 / year Total cost: €9,200 inc. The flat rate applied will be 30% of the total annual cost 9 200€*30 % = 2 760€ The 50% allowance for 100% electric vehicles must be taken into account. 2 160€ * 50 % = 1 380€ The allowance is capped at €1,800/year. The value of the benefit in kind is therefore €1,380. |
NC |
In this case, it's much more attractive to buy as a professional, because the purchase price is lower than as a private individual, the vehicle represents a very low expense for the company, and the benefits in kind are very attractive.
As you can see, the choice of acquisition depends on a number of parameters:
- your business
- your reference tax income, which may or may not entitle you to certain forms of assistance
- the need for the vehicle for business and personal travel
- geography: depending on where you work or live, regional aid is not the same.
That's it! We hope this article has helped you make sense of things! Let us know what you think in the comments section!
