Company vehicle: what has changed with the recently implemented TAI?

While there have already been numerous obligations and incentives to replace the thermal vehicles in their fleets with electric models (LOM law in 2019, Climate and Resilience law in 2021, etc.), there is a new measure whose recent entry into force has taken everyone by surprise: the TAI. Behind this mysterious acronym hides the Annual Incentive Tax, a tax that penalizes the "non-greening of fleets" and which is part of the Finance Act for 2025. Its objective? To encourage companies with a fleet of more than 100 vehicles to massively switch to electric vehicles with a financial penalty in the event of non-compliance. The system already provides that this tax and its method of calculation will be progressively more punitive each year until 2030 when the maximum level of penalty will be applied to the companies concerned that have not reached a rate of 48% electric vehicles in their fleet. Faced with the upheaval that this new legislative measure represents, and to better understand its consequences, Sharvy, a French start-up publishing a SaaS solution for managing company parking and offices with more than 70.000 daily users (Vinci, JC Decaux, Nestlé, Ralph Lauren, Onet, etc.), today provides an update on the entry into force of the TAI and the challenges it represents.

The Annual Incentive Tax: What is it? And how is it calculated?

The Annual Incentive Tax is a so-called "non-greening of fleets" penalty tax that is part of the Finance Act for 2025. Its principle is a financial penalty mechanism that will apply to companies with a fleet of more than 100 vehicles but which have not reached a certain percentage of electric vehicles within it. It replaces the greening quota system previously established by the LOM. It resulted in the appearance of Article L224-9-1 of the Environmental Code, which now stipulates that "companies are subject to the annual incentive tax relating to the acquisition of low-emission light vehicles mentioned in 1° bis of Article L. 421-94 of the Code of Taxation on Goods and Services." Its mechanism is based on financial penalties in the form of a tax on the companies concerned which have not reached each year the target percentage of electric vehicles in their fleet as defined by law (a percentage which will increase from year to year up to a final rate of 48% in 2030).

The method for calculating the TAI thus established is as follows: TAI = "penalty per vehicle" X "deviation factor" X "annual renewal rate". The penalty level per vehicle is an amount in euros which also increases from year to year (€2000/vehicle in 2025, €4000 in 2026 then €5000 from 2027). The deviation factor corresponds to the difference between the target percentage of electric vehicles defined annually by law (15% in 2025, 18% in 2026, 25% in 2027, 30% in 2028, 35% in 2029, 48% in 2030) and the actual percentage of these vehicles in the company's fleet. Finally, the annual renewal rate corresponds to the percentage of the fleet that was renewed during the year for thermal vehicles. The TAI will be declared and paid for companies at the same time as the TVU and the first sanctions will therefore fall from 2026 for companies that have not reached their target percentage in 2025. These sanctions will be further reduced in 2026 by a pro rata calculation based on the date of entry into force of the TAI on March 1, 2025. However, they will apply in full and complete form in 2027.

Fleet electrification: a lever deemed crucial for the ecological transition and economic dynamism in France

With the entry into force of the TAI, it is clear that the electrification of corporate and local government vehicle fleets represents a major challenge in achieving the climate objectives set by the French government. Indeed, companies are responsible for more than 50% of new vehicle registrations in France, which, according to the government, gives them considerable responsibility in the decarbonization of the vehicle fleet. From an economic perspective, by encouraging the adoption of electric vehicles, the TAI should also, beyond simply reducing carbon emissions, boost the used car market, making access to electric vehicles more affordable for individuals while boosting the economic results of manufacturers and therefore of Made in France. This dual action, ecological and economic, has been highlighted as a key lever of the national decarbonization strategy by the new government.

The implementation of the TAI is also explained by the government's view that the pace of companies' transition to electric mobility is still far too insufficient. The Mobility Orientation Law (LOM) previously imposed a quota of 20% low-emission vehicles on large companies when renewing their fleets (with a maximum target of 70% by 2030). However, it appears that many companies have struggled to meet these quotas. This is due in particular to a lack of controls and dissuasive sanctions, according to experts, which has undermined the practical effectiveness of the system. A bill tabled in early 2025 therefore sought to tighten the constraints imposed on companies by strengthening reporting obligations (fleet size, number of low-emission vehicles, renewal rates, etc.) and introducing penalties for offenders. This desire ultimately resulted in the entry into force on March 1, 2025, of the Annual Incentive Tax, despite its controversial nature, including within the majority, since for some it affects the economic competitiveness of French companies.

Faced with TAI, structural and human obstacles for companies and a double challenge for fleet managers

In 2024 in France, according to the NGO Transport & Environment France, 20% of individuals will buy electric cars compared to only 12% of businesses. To explain this disparity, many business leaders highlight the pitfalls they face, first and foremost the purchase cost of electric vehicles, which is significantly higher than that of equivalent combustion-engine models. Although maintenance and operating costs are often lower, the initial price remains a barrier, particularly for SMEs or short-term rental companies. Added to this is the insufficient network of charging stations, especially in peri-urban and rural areas, a structural problem in France (26.326 charging points in Ile-de-France compared to 152.887 public charging points in France as of December 31, 2024 according to Avere, or 17% of the French offering) which concretely limits the possibilities of a massive deployment of electric fleets across all the country's territories. This logistical constraint is holding back the commitment of many companies who are hesitant to transform their fleet without a guarantee of adequate infrastructure.

Beyond the financial and technical aspects, employee resistance to change also poses an additional obstacle. Many of them express concerns about the range of electric vehicles, their charging time, and the availability of charging stations, particularly for long business trips or those in the regions. This reluctance is often exacerbated within certain companies and communities by a lack of training and support in the use of these new vehicles. In response, companies can rely on solutions such as Sharvy's parking management software suite, which, in addition to automatically managing and optimizing their parking facilities, also integrates the management and supervision of the charging stations located there. It also allows them to anticipate technical problems thanks to real-time monitoring tools, to immediately alert in the event of an anomaly, and to remotely manage certain maintenance tasks. Finally, the Montpellier-based startup's solution ensures service continuity, optimizes the fleet's energy consumption, manages access, and simplifies billing. Fewer difficulties for fleet managers who now have to face a double challenge since the entry into force of the TAI: convincing internally while managing external constraints, in a context where regulatory pressure and the risk of financial penalties are intensifying.