The new ecological bonus terms and conditions
As a reminder, the environmental bonus is a measure in force since 2008, created as part of the Grenelle de l'Environnement. Its aim is to encourage the purchase or use (long-term leasing) of environmentally-friendly vehicles through the payment of a bonus to private individuals and companies. The ecological bonus changed little until 2021, when it was reduced from 7,000 to 6,000 euros for the purchase of an electric car. The Finance Act 2024 instigates a more drastic overhaul of this scheme, since the method of calculating the ecological bonus and its conditions of attribution have been completely overhauled since January 1ᵉʳ.
Environmental score
The main change affecting the ecological bonus is that it is no longer based solely on the calculation of pollutant emissions generated by a vehicle in use. Other criteria are now taken into account, such as thecarbon footprint associated with its productionbut also its transport and marketing conditions. In practical terms, this means that if a car is produced in China and then exported to France, its eligibility for the bonus may be called into question, even if it is a low-emission vehicle.
The new criteria for awarding the ecological bonus are subject to a specific calculation method detailed in decree decree no. 2023-886. The ADEME (Agence de l'Environnement et de la Maîtrise de l'Energie), which is responsible for evaluating vehicles and assigning them a score, known as the environmental score. To be eligible for the ecological bonus, a vehicle must obtain a score between between 60 and 80 points.
The decree specifies that 70% of the score covers "the stages in a vehicle's life cycle prior to its use on the road", in other words its production conditions, the resources monopolized for its manufacture, the materials favored by the manufacturer and the routing of the finished product to distribution or sales networks.
Visit remaining 30% of relate to "the use of recycled and bio-sourced materials in the vehicle, as well as battery reparability".
These new constraints apply to new vehicles acquired or leased under LDD after December 15, 2023.
Other conditions of eligibility for the ecological bonus
As in previous years, the purchase amount is capped. The value of the vehicle (purchased or leased under an LDD) must be less than 47,000 euros.
In addition, the gross vehicle weight (GVW) of the vehicle must not exceed 2.4 tonnes.
Finally, the owner or user of the vehicle undertakes to keep it for a minimum of one year, or to reach a mileage of 6,000 km, before transferring it, reselling it or terminating the leasing contract.
Note that the ecological bonus now only applies to 100% electric vehicles. Plug-in hybrids are excluded from the scheme. A list of new cars eligible for the ecological bonus in 2024 has been published in the Journal Officiel.
The order of February 5, 2024 amended the order of December 14, 2023 setting the list of eligible versions of electric passenger cars. The following models have been added:
Source : Légifrance
In addition, ADEME has set up a regularly updated tool for accessing eligible vehicle models.
Over 450 models are listed, including :
Also read → The 2024 ecological bonus: the list of 53 electric cars concerned
Assistance reserved for private individuals?
On February 13, 2024, the government sounded the death knell for the ecological bonus awarded to legal entities. In concrete terms, companies owning or leasing an electric fleet are deprived of valuable financial assistance, which amounted to 3,000 euros for the acquisition or LDD leasing of a 100% electric car.
Nevertheless, companies will continue to benefit from an ecological bonus of the same amount for the purchase of electric commercial vehiclesas we shall see below.
For private individuals, this assistance is still on the agenda, but lowered by 1,000 euros for the most affluent households. The award criteria remain the same: the capped value of the vehicle and the household's reference tax income.
As of February 13, 2024, the bonus amounts to 4,000 euros (compared with 5,000 euros in 2023). However, a supplement of 3,000 euros applies to individuals with a reference tax income of 15,400 euros or less, bringing the bonus down to 7,000 euros, as in previous years.
Used vehicles are no longer included in the scheme (the 1,000-euro bonus is no longer available for the purchase of a used electric car).
Good to know: as before, the ecological bonus can be combined with the conversion bonus (whose rates have also been revised downwards, and which now only applies to the purchase of a 100% electric vehicle) and the 1,000-euro bonus granted to private individuals living or working in a low-emission zone.
Light commercial vehicles (LCVs)
Companies looking to equipelectric or hydrogen can still benefit from an ecological bonus of 3,000 euros.
The method of calculating eligibility is the same as for private vehicles, since the environmental score is also taken into account. However, tariff ceilings and weight limits do not apply.
The company undertakes to keep the commercial vehicle for at least two years.
Tougher environmental penalties
The ecological malus is a tax payable by owners of new vehicles deemed to be polluting, at the time of registration. It applies to both private individuals and professionals.
The impact of the "malus écologique" on company fleets depends on their composition. If a company decides to acquire vehicles that do not comply with current environmental standards, it is likely to face significant additional costs.
The 2024 Finance Act provides for a tougher environmental penalty (article 97). For companies, this measure is in addition to the constraints imposed by the LOM law (Mobility Orientation Law). As a reminder, this law aims to promote the greening of business fleets by imposing quotas for clean vehicles. By 2024, companies with fleets of over 100 units must introduce a minimum of 20% electric or hydrogen-powered vehicles in their fleet renewal.
The underlying objective of this measure, which is to encourage companies to review their sustainable mobility policies, has so far not been achieved. According to the NGO Transport et Environnementonly only 4 companies out of 10 had revised their electrification quotas in line with the LOM law by 2023.. For the time being, no financial penalties are envisaged, and the LOM law remains an "incentive" measure.
Against this backdrop, the ecological malus is emerging as an alternative means of punishing companies that fail to apply quotas.
In 2024, the calculation of the ecological penalty is based on the same criteria as in 2023, namely CO2 emissions emissions vehicle weight. But the latter have been tightened considerably.
A lower trigger threshold
As of January 1ᵉʳ, 2024, the threshold for triggering the malus has been lowered from 123 g/km to 118 g/km of CO2 (WLTP scale). The amount of the penalty starts at 50 euros and rises to a staggering maximum of 60,000 for emissions over 193 g/km.
With the lowering of the threshold, a new category of vehicles is now concerned. Thermal cars are explicitly targeted, as a very large number of models are now affected. Cars with mild-hybrid engines, with average emissions of 118 g/km, are now taxed.
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
|
CO2 emissions in g/km |
138 |
133 |
128 |
123 |
118 |
|
Maximum penalty |
20 000 € |
30 000 € |
40 000 € |
50 000 € |
60 000 € |
Revised ceilings
At the same time as the trigger threshold is lowered, the maximum ceiling is raised from 50,000 euros to 60,000 euros for vehicles emitting more than 193 g/km of carbon dioxide.
This measure is particularly aimed at the highest-emission combustion-powered vehicles, such as SUVs.
When the revision of ceilings and the lowering of trigger thresholds are put into perspective, the financial financial penalty can be multiplied by three. three times. Before the Finance Act came into force, the purchase of a new vehicle emitting 194 g/km generated a penalty of 17,490 euros. Now, for the same category, the penalty is 60,000 euros... an amount that in some cases exceeds the value of the vehicle!
All the more so as the cap on the amount of the malus at 50% of the purchase value has also been abolished, the government pointing to a lack of firmness towards owners of polluting vehicles.
2024 CO2 scale, WLTP method
| Emissions (g/km of CO2) | Malus 2023 (in €) | Malus 2024 (in €) |
|---|---|---|
| 118 | 0 | 50 |
| 119 | 0 | 75 |
| 120 | 0 | 100 |
| 121 | 0 | 125 |
| 122 | 0 | 150 |
| 123 | 50 | 170 |
| 124 | 75 | 190 |
| 125 | 100 | 210 |
| 126 | 125 | 230 |
| 127 | 150 | 240 |
| 128 | 170 | 260 |
| 129 | 190 | 280 |
| 130 | 210 | 310 |
| 131 | 230 | 330 |
| 132 | 240 | 360 |
| 133 | 260 | 400 |
| 134 | 280 | 450 |
| 135 | 310 | 540 |
| 136 | 330 | 650 |
| 137 | 360 | 740 |
| 138 | 400 | 818 |
| 139 | 450 | 898 |
| 140 | 540 | 983 |
| 141 | 650 | 1 074 |
| 142 | 740 | 1 172 |
| 143 | 818 | 1 276 |
| 144 | 898 | 1 386 |
| 145 | 983 | 1 504 |
| 146 | 1 074 | 1 629 |
| 147 | 1 172 | 1 761 |
| 148 | 1 276 | 1 901 |
| 149 | 1 386 | 2 049 |
| 150 | 1 504 | 2 049 |
| 151 | 1 629 | 2 370 |
| 152 | 1 761 | 2 544 |
| 153 | 1 901 | 2 726 |
| 154 | 2 049 | 2 918 |
| 155 | 2 049 | 3 119 |
| 156 | 2 370 | 3 331 |
| 157 | 2 544 | 3 552 |
| 158 | 2 726 | 3 784 |
| 159 | 2 918 | 4 026 |
| 160 | 3 119 | 4 279 |
| 161 | 3 331 | 4 543 |
| 162 | 3 552 | 4 818 |
| 163 | 3 784 | 5 105 |
| 164 | 4 026 | 5 404 |
| 165 | 4 279 | 5 715 |
| 166 | 4 543 | 6 126 |
| 167 | 4 818 | 6 537 |
| 168 | 5 105 | 7 248 |
| 169 | 5 404 | 7 959 |
| 170 | 5 715 | 8 770 |
| 171 | 6 039 | 9 681 |
| 172 | 6 375 | 10 692 |
| 173 | 6 724 | 11 803 |
| 174 | 7 086 | 13 014 |
| 175 | 7 462 | 14 325 |
| 176 | 7 851 | 15 736 |
| 177 | 8 254 | 17 247 |
| 178 | 8 671 | 18 858 |
| 179 | 9 103 | 20 569 |
| 180 | 9 550 | 22 380 |
| 181 | 10 011 | 24 291 |
| 182 | 10 488 | 26 302 |
| 183 | 10 980 | 28 413 |
| 184 | 11 488 | 30 624 |
| 185 | 12 012 | 32 935 |
| 186 | 12 552 | 35 346 |
| 187 | 13 109 | 37 857 |
| 188 | 13 682 | 40 468 |
| 189 | 14 273 | 43 179 |
| 190 | 14 881 | 45 990 |
| 191 | 15 506 | 48 901 |
| 192 | 16 149 | 51 912 |
| 193 | 16 810 | 55 023 |
| 194 | 17 490 | 60 000 |
| 195 | 18 188 | 60 000 |
| 196 | 18 905 | 60 000 |
| 197 | 19 641 | 60 000 |
| 198 | 20 396 | 60 000 |
| 199 | 21 171 | 60 000 |
| 200 | 21 966 | 60 000 |
| 201 | 22 781 | 60 000 |
| 202 | 23 616 | 60 000 |
| 203 | 24 472 | 60 000 |
| 204 | 25 349 | 60 000 |
| 205 | 26 247 | 60 000 |
| 206 | 27 166 | 60 000 |
| 207 | 28 107 | 60 000 |
| 208 | 29 070 | 60 000 |
| 209 | 30 056 | 60 000 |
| 210 | 31 063 | 60 000 |
| 211 | 32 094 | 60 000 |
| 212 | 33 147 | 60 000 |
| 213 | 34 224 | 60 000 |
| 214 | 35 324 | 60 000 |
| 215 | 36 447 | 60 000 |
| 216 | 37 595 | 60 000 |
| 217 | 38 767 | 60 000 |
| 218 | 39 964 | 60 000 |
| 219 | 41 185 | 60 000 |
| 220 | 42 431 | 60 000 |
| 221 | 43 703 | 60 000 |
| 222 | 45 000 | 60 000 |
| 223 | 46 323 | 60 000 |
| 224 | 47 672 | 60 000 |
| 225 | 49 047 | 60 000 |
| > 226 | 50 000 | 60 000 |
Source : Légifrance
Mass tax on track
The weight tax or weight malus is a tax system that specifically targets vehicles according to their weight. Until now, it applied to models weighing over 1.8 tonnes. In 2024, new rules have been enacted: the threshold triggering the malus has been lowered to 1.6 tonnes.
On the other hand, the penalty is becoming progressively tougher, with a rate that increases in proportion to the kilos in excess. The calculation rule, which consisted of applying a penalty of 10 euros per kilo of excess weight, has been replaced by a progressive scalewhich increases by 5 euros per kilo, up to a maximum of 30 euros per kilo for vehicles weighing over 2.1 tonnes.
| Vehicle weight (kg) | Marginal rate (€) |
|---|---|
|
Up to $1,599
|
0 |
|
From 1,600 to 1,799
|
10 |
|
From 1,800 to 1,899 |
15 |
|
From 1,900 to 1,999
|
20 |
|
From 2,000 to 2,100
|
25 |
|
From 2,100
|
30 |
Plug-in hybrid vehicles, which were previously unaffected, will be taxed by weight from January 1ᵉʳ 2025. However, those with arange of over 50 km will be subject to a 200 kg allowance, up to a limit of 15% of their total weight.
Annual tax increases for company vehicles
The TVS (Taxe sur les Véhicules de Société) applies to any company (or sole proprietorship) that acquires or uses vehicles to transport people in the course of its business.
Introduced in 2006, the TVS will be replaced in 2022 by a two-component system:
- a tax on CO2 emissions
- a tax on the age of passenger vehicles.
In 2024, the tax on vehicle age will be replaced by a tax on air pollutant emissions. tax on emissions of atmospheric pollutants. This seemingly innocuous measure is highly disadvantageous for owners of the most polluting vehicles, as we shall see in detail.
H3: Tightening the tax on CO2 emissions
The 2024 Finance Act (Article 14) provides for a gradual revision of CO2 emission tax rates until 2027. This is calculated on the basis of several criteria that vary according to vehicle category: CO2 emission rate, date of entry into circulation and, in some cases, fiscal power.
Vehicles registered in France from March 2020 will be subject to the WLTPcalculation method, i.e. the amount of CO2 emitted per kilometer:
| Fraction of CO2 emissions (in g/km) | Marginal rate (€) |
|---|---|
|
Up to 14 |
0
|
|
From 15 to 55 |
1
|
|
From 56 to 63 |
2 |
|
From 64 to 95 |
3
|
|
From 96 to 115
|
4
|
|
From 116 to 135 |
10 |
|
From 136 to 155 |
50 |
|
From 156 to 175 |
60 |
|
From 176
|
65 |
Source : Service Public
Vehicles in circulation since June 1ᵉʳ 2004 and acquired or leased by the company after January 1ᵉʳ 2006 come under the NEDC system. The calculation method differs. It, too, is based on CO2 emissions, but these are multiplied by the marginal tariff, according to the breakdown of a bracketed scale.
NEDC scale
| Fraction of CO2 emissions (in g/km) | Marginal rate (€) |
|---|---|
|
Up to 12 |
0
|
|
From 13 to 45 |
1
|
|
From 46 to 52 |
2 |
|
From 53 to 79 |
3
|
|
From 80 to 95
|
4
|
|
From 96 to 112 |
10 |
|
From 113 to 128 |
50 |
|
From 129 to 145 |
60 |
|
From 146
|
65 |
Source : Service Public
Company vehicles not covered by the WLTP or NEDC systems are taxed according to fiscal power:
Fiscal power scale
| Fraction of admnistrative power in horsepower (HP) | Marginal rate (€) |
|---|---|
|
Up to 3 |
1500
|
|
From 4 to 6 |
2250
|
|
From 7 to 10 |
3750 |
|
From 11 to 15 |
4750
|
|
From 16 |
6000
|
Source : Service Public
The tax on atmospheric pollutants
This new tax is calculated according to fuel type and vehicle registration date. Electric cars are exempt.
It mainly concerns Crit'Air 3 to 5vehicles, which are now subject to substantial financial penalties.
The amount varies from 100 euros for vehicles complying with Crit Air Euro 5 and 6, compared with 20 euros previously, to 500 euros for other vehicles (Euro 4 or lower), compared with 40 euros previously.
Reforming automobile tax systems: a threat or an opportunity?
Changes in automobile tax arrangements are increasingly becoming a means of pressure used by the government to encourage the greening of corporate fleets and, more broadly, to discourage the acquisition of vehicles that do not comply with environmental standards.
The revision of thresholds and ceilings for greenhouse gas emissions has a significant impact on TCO. impact on fleet TCO. For fleet managers and decision-makers, it is becoming urgent to deploy a sustainable mobility plan. Over and above the resulting constraints, these operational adjustments are an opportunity to instill a more virtuous dynamic in terms of eco-responsibility, for the benefit of companies and their employees.
Anticipating tax and regulatory changes with an appropriate mobility strategy offers several key advantages:
- Improved cost control: by adopting sustainable mobility solutions such as the widespread use of electric vehicles, companies can reduce the amount of taxes associated with CO2 emissions, as well as fuel and vehicle maintenance costs.
- Reduced environmental footprint: greening fleets is part of a corporate social responsibility (CSR) approach, and can help managers meet their commitments.
- A competitive advantage: an effective mobility strategy helps to improve a company's operational efficiency, while reinforcing its brand image with employees, suppliers and consumers.
For more information, we've put together a guide to this topic to explore the different aspects in depth:
Read our article about :
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