The incentives and legislations section is undergoing a comprehensive annual update for 2025, due to be published by 18th April 2025.

The last annual update was to represent situation as of 2024, publihsed on 23rd April 2024.

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.

If you know of other national or local incentives that should be included in this section, please send us an email, or use the button on the right, and let us know. We review the proposed changes and implement the updates on a short notice. 

Purchase subsidies

The ecological bonus (“bonus écologique”) remains in place for 2025 with income-based eligibility:

• RFR ≤ €16,300: up to €4,000
• RFR €16,300–€26,200: €3,000
• RFR > €26,200: €2,000

For households with RFR ≤ €15,400, the maximum bonus remains €7,000.Used BEV subsidies ended in December 2024. Companies are no longer eligible for bonuses on passenger cars, though light commercial vehicles remain eligible.Eligibility criteria include:

• Fully electric or hydrogen vehicle
• Price below €47,000
• Weight under 2.4 tonnes
• Minimum environmental score: 60/80
• Buyer must be 18+, reside in France, and keep the car ≥12 months or ≥6,000 km

 

Registration tax benefits

BEVs are fully exempt from the CO₂-based registration tax (“malus écologique”) and only pay a minimal base fee (~€150), depending on region. Most regions reduce or waive the “carte grise” fee. BEVs and PHEVs with electric range >50 km are also exempt from the weight-based malus.

Ownership / Circulation Tax Benefits html Copy Edit

BEVs are exempt from the annual ownership tax on high-emission vehicles and from the “Taxe sur les Véhicules de Société” (TVS) for companies. Some regions, like Paris, offer further reductions—e.g., a 75% road tax reduction.

Company tax benefits

The 50% reduction on Benefit-in-Kind (BIK) for BEVs is extended through 31 December 2025, capped at €1,800 annually. Employer-covered electricity for workplace charging is excluded from BIK. A 50% BIK reduction (also capped at €1,800/year) applies to employer-financed home chargers. Companies may also qualify for the Green Industry Investment Tax Credit (C3IV) at 20%, 25%, or 40% depending on location.

VAT Benefits

The standard 20% VAT applies to BEV purchases. However, reduced VAT applies to charging station installations: 5.5% for homes over two years old, 10% for older buildings, and 20% for newer constructions. VAT on professional BEVs and electricity used for business purposes is deductible.

Other Financial Benefits

Some municipalities provide free or discounted BEV parking, often up to two hours. Grants cover up to 50% of charging station installation costs, capped at €5,000. Additional offers may be available through utility providers.

Local Incentives

• Île-de-France: €2,250–€9,000 based on income and vehicle type
• Normandy: €1,000–€2,500 for BEVs under €40,000
• Auvergne-Rhône-Alpes: Up to €5,000 for SMEs and communities
• PACA: 50% subsidy on renewable energy systems including BEV infrastructure
• Occitanie: 30% of used BEV cost, up to €2,000 or €4,000 based on income
• Nice: €2,000 support for new BEVs, no income condition

AF Infrastructure Incentives

France targets 400,000 public charging points by 2030. National funding includes €200 million (2024–2027) and an additional €68 million for fast/ultra-fast chargers. 

The tax credit for home charger installation increased from €300 to €500. Monthly deployment averages 3,000 new charging points.

Expected changes from 2025

• The ecological bonus budget remains at €1 billion in 2025.
• Social Leasing (LLD): Relaunches in September 2025 for low-income households (RFR ≤ €15,400). Capped at €150/month (some vehicles from €100), with financial aid of €6,000 or 16% of vehicle cost.
• “Malus écologique” tightened: CO₂ threshold drops to 113 g/km; penalty rises to €70,000 for vehicles >193 g/km. Further reductions in 2026 (105 g/km) and 2027 (98 g/km).
• Strategic targets: 66% of new cars electric by 2030; 100% by 2035; climate neutrality by 2050.

 

Interesting links

Public Info: EV BonusCarte Grise & RegistrationVehicle TaxesAVERE France – IncentivesAVERE: January 2025 UpdateGrand Paris Aid InfoReuters on Bonus Cuts

Institutions involved in Incentives

Service Public ProMinistère de la Transition écologique et solidaireASP – Agence de Services et de PaiementFrench Tax Administration (DGFiP)ADEME – Environment and Energy Management AgencyRegional and Local Authorities