What is the impact of the LOM law and new tax regulations on companies?
Against a backdrop of urgent climate change and transport saturation, the LOM law (Mobility Orientation Law) of December 24, 2019, aims to improve everyday transportation to make it :
- Less expensive.
- More environmentally friendly.
- Easier.
The LOM Act is based on three main pillars:
- Invest more in everyday transportation.
- Deploy new solutions (car-sharing, mobility vouchers, etc.).
- Committing to an ecological transition through cleaner mobility (conversion bonus, increased number of electric vehicle charging points, ban on the sale of carbon-based fossil fuel cars by 2040...).
However, companies must also contribute to the challenges of sustainable development. By implementing a CSR approach, companies are acting to achieve a positive impact on the environment and on corporate well-being.
Three measures stemming from the new regulations of the LOM LAW impact companies:
The employer mobility plan
Since January 1, 2020, companies with more than 50 employees on a single site have been obliged to include a mobility component in their NAO (Négociations Salariales Annuelles Obligatoires) negotiations with their social partners.
The benefits are environmental (limiting CO2 emissions), economic (optimizing travel) and social (improving quality of life at work for employees).
The company must apply a PDME (Plan de Mobilité Employeur) if these negotiations are not concluded.
Greening the fleet
The aim is to acquire a percentage of low-emission vehicles. This applies to companies with an electric vehicle fleet (over 100 light vehicles).
Companies will benefit from :
- an exemption from the tax on the use of passenger vehicles for economic purposes on their electric vehicle fleet
- an ecological bonus for the purchase of a new car with low CO2 emissions.
Sustainable mobility package
The employer covers transportation costs. The aim is to move towards more ecological and economical mobility. This package is optional. Limited to 500 euros per year, it is dedicated to commuting costs.
To find out more → Fleet insurance
What financial assistance is available for an electric vehicle fleet?
Companies with electric vehicle fleets can benefit from financial assistance.
Ecological bonus
The ecological bonus is financial assistance for the purchase or lease of an electric or hybrid car. It is deducted from the price of the vehicle at the time of purchase, or reimbursed after the vehicle has been purchased. The amount of the bonus varies according to several factors.
For fleets, the bonus will be €4,000 for new vehicles costing less than €45,000. For plug-in hybrids costing less than €50,000 and with an electricrange of over 50 kilometers, the amount will be €10,000.
Conversion bonus
The good news is that it's not just private individuals who can benefit from the conversion bonus. Companies are also eligible. The conversion bonus enables companies that scrap a vehicle to benefit from a substantial reduction on the purchase of the next vehicle.
The amount varies according to various criteria:
- vehicle purchase date: conditions differ if the vehicle was purchased before or after July 26, 2021
- vehicle category
- CO2 level
Premium Advenir
If you want to install installation of charging stations on your fleetyou can benefit from Advenir's subsidy.
The Advenir program helps cover part of the cost of a terminal installation project.
Here, ADVENIR offers incentives for :
- Truck fleets (500 kVA or more)
- Fleets and employees of short-term rental companies
- Automotive service professionals
Here's the scale of subsidies if you want to install charging stations in your parking lot, depending on the target.
ADVENIR bonus for heavy goods vehicle fleets (for deployment ofrecharging infrastructure under 500 kVA)
| Type of beneficiary | Charging power | Rate of assistance | Maximum amount per recharging point |
|---|---|---|---|
|
Company and public entity: private parking lot |
between 12 and 43 kW AC |
50 % |
2 200 € |
|
Company and public entity: private parking lot |
between 20 and 40 kW DC |
50 % |
3 300 € |
|
Company and public entity: private parking lot |
Between 41 and 140 kW DC |
50 % |
7 500 € |
|
Company and public entity: private parking lot |
Over 140 kW DC |
50 % |
15 000 € |
ADVENIR bonus for heavy goods vehicle fleets (for deployment of recharging infrastructure above 500 kVA)
| Greater than or equal to 500 kVA | Greater than or equal to 1,000 kVA | Greater than or equal to 2,000 kVA | Greater than or equal to 4,000 kVA | Greater than or equal to 8,000 kVA |
|---|---|---|---|---|
|
100,000 EXCL. TAX |
160,000 EXCL. TAX |
240,000 EXCL. TAX |
480,000 EXCL. TAX |
960,000 EXCL. |
The ADVENIR bonus for company fleets and employees of short-term rental vehicles
The ADVENIR program also offers a bonus to help short-term car rental companies finance theinstallation of charging stations.
Here is some information about the amount of the bonus:
| Target | Usage | Rate of assistance | Premium per recharging point (excl. VAT) |
|---|---|---|---|
|
Short-term vehicle rental |
Fleets and employees |
20 % |
600 EXCL. TAX |
The ADVENIR bonus for automotive service professionals
And what about automotive service professionals?
After announcing on May 3, 2022 the renewal of Advenir until the end of 2025, the ADVENIR program and the employers' organization Mobilians have decided at the same time to open an ADVENIR subsidy dedicated to automotive service professionals.
Here's how much help we can offer them:
| Target | Premium type | Rate of assistance | Premium per recharging point (excl. VAT) |
|---|---|---|---|
|
Automotive service profession |
Fleet and employee charging points |
25 % |
750 € EXCL. TAX |
IMPORTANT:
- As of December 31, 2022, the ADVENIR program will no longer include incentives for fleets, employees and modernization,
- Incentives for public charging points in private parking lots and for intermediate targets (hotels, restaurants and shops) will end in August 2023.
What tax exemptions are there for a fleet of electric cars?
An electric vehicle fleet is a commitment to the ecological transition. However, the taxation of electric vehicles is also a real economic advantage for your company. Here are the tax deductions you can benefit from:
Exemption from tax on the use of passenger vehicles for economic purposes
The Tax on the Use of Passenger Vehicles for Economic Purposes (Taxe sur l'affectation des véhicules de tourisme à des fins économiques) is an amount that companies must pay on the vehicles they own. The leasing of company vehicles is also exempt from this tax.
Since 2021, the French General Tax Code has drawn up a list of vehicles exempt from the tax on the allocation of passenger vehicles for economic purposes. An electric vehicle fleet is exempt from this tax.
Regional tax exemption
The "carte grise" (or registration certificate) is subject to payment of a tax: the regional tax.
Also known as the tax on fiscal horsepower, it is calculated according to the vehicle's fiscal horsepower.
Since 2020, in France, companies with an electric car fleet have been exempt from regional tax.
Deduction of vehicle depreciation
Depreciation of an electric vehicle is capped at €30,000, regardless of the year of acquisition. An electric vehicle fleet represents a real tax advantage, as the depreciation of a combustion-powered vehicle is capped at €18,300 for the least polluting.
The French government offers attractive tax benefits to companies that opt for green mobility. Switch your employees to electric cars and reduce the cost of your electric vehicle fleet.
To find out more → taxation of electric vehicles
