Electric cars: what has changed for businesses since January 1, 2025

And this is all the more so since the regulations surrounding it will change profoundly, sometimes in a contradictory manner. On the household side, while the latest figures suggest that the massive conversion to electric vehicles could inject up to 23,5 billion euros into the French economy, the government has nevertheless decided by a decree that came into force on December 1 to eliminate the conversion bonus and reduce the ecological bonus, two measures that have become too costly for public finances. On the business side, new regulatory changes will take effect on January 1, 2025: end of free charging at the office for employees, obligation to equip oneself with charging stations, to electrify one's fleet and to pre-equip one's premises... Faced with all these upheavals, and to see things more clearly, Sharvy, a French start-up publishing a SaaS solution for managing company parking lots and offices with more than 60.000 daily users (Vinci, JC Decaux, Nestlé, Ralph Lauren, Onet, etc.), is today taking stock of all the regulatory changes concerning electric cars within the company from January 1, 2025.

January 1, 2025: the end of free charging at the office

Since 2020, companies have been able to offer free charging stations to their employees without this incurring any tax or social security charges. Thus, employees of a company can charge freely and free of charge at their workplace, even for non-professional purposes. However, following the recent decision by URSSAF to align all benefits provided by employers in order to ensure "tax fairness", this incentive measure should end on December 31, 2024.

From 1 January 2025, this free service will be reclassified as a benefit in kind, thus leading to social security contributions for the company and possible taxation for employees. Faced with this change, companies will have to decide whether to assume these new costs, set up an invoicing system or explore other alternatives. A tax issue that is all the more thorny as a draft reform of benefits in kind for thermal vehicles is also being finalised. The current flat rate of 30%, applicable to employees benefiting from the rental of a company vehicle, could thus be increased to 50 or 60%, which would also generate a significant additional financial cost for employees and employers.

It should be noted that the extension of this measure remains theoretically possible if a new decree were to appear in the Official Journal before December 31, 2024. Indeed, the current measure was initially due to end on December 31, 2022 and had been renewed by a decree of December 8, 2022 which had extended it by two years. However, in the context of the current political crisis, it is unlikely that this measure could be passed in time in the absence of a government.

January 1, 2025: 3 new deadlines for the mobility orientation law (or LOM law)

1st deadline: from January 1, 2025, the Mobility Orientation Law (LOM) will require companies to install charging stations for electric vehicles in their parking lots. In concrete terms, for each tranche of 20 parking spaces that it has, a terminal must be installed by the company, with the specificity that at least one space equipped with a charging station must be accessible to People with Reduced Mobility (PRM). Ultimately, this measure requires that at least 5% of parking spaces in non-residential car parks be equipped with charging stations. It should also be noted that the European Commission is already working on a plan to strengthen this measure, by raising the equipment obligation to 10% (compared to 5% under the LOM Law). It is also important to remember that the Climate and Resilience Law of August 22, 2021 imposes a similar obligation on local authorities, to be complied with by January 1, 2025. This concerns parking lots with more than 20 spaces, whether they are managed by public service delegation, in-house, or through a public contract.

2nd deadline: from January 1, 2025, the Mobility Orientation Law (LOM) will require companies with more than 100 vehicles to electrify their fleet. This percentage was set at 10% for January 1, 2022 and 20% for January 1, 2024. It will be 40% on January 1, 2027 and must continue to increase gradually to reach 70% in 2030 under the Climate and Resilience Law of August 22, 2021, which doubles the LOM law.

3rd deadline: from January 1, 2025, the Mobility Orientation Law (LOM) will require companies to pre-equip their parking lots in order to facilitate the future installation of charging stations. For new buildings (whose parking lots have more than 10 spaces), pre-equipment is required for 20% of parking spaces, of which 2% (equivalent to a minimum of one space) must be sized to be accessible to people with reduced mobility (note that buildings undergoing major renovation must also comply with this requirement). For existing buildings (whose building permit was filed before January 1, 2017), pre-equipment will be required for at least 10% of parking spaces in urban areas with more than 50.000 inhabitants, and only 5% in other cases.

January 1, 2025: the obligation of ZFE in all agglomerations of more than 150.000 inhabitants

Although it does not directly concern companies, the provision of the Climate and Resilience Law of August 22, 2021, which makes the establishment of low-emission mobility zones (ZFE or ZFE-m) mandatory from January 1, 2025, in all urban areas with more than 150 inhabitants (i.e. 000 new French urban areas concerned) will nevertheless have an impact on their activity and on the mobility of their employees, encouraging both the electrification of fleets and the acquisition of personal electric vehicles by employees to come to their workplace.

This measure, as well as others already adopted by many municipalities and communities in France, will also be particularly incentivizing for alternative modes of mobility such as carpooling, cycling, public transport, etc. This will represent an organizational and logistical challenge for companies that will need to integrate them into their Employer Mobility Plan, with, for example, subjects such as the management of access and parking privileges within company car parks where a solution such as Sharvy makes it possible to avoid under-occupation as well as saturation.

Update on the assistance available to businesses today

Since January 1, 2023, any company that would like to install charging stations in its own parking lot, not open to the public and intended for its employees, no longer benefits from the ADVENIR subsidy. Only specialized companies, such as heavy goods vehicle fleets, short-term car rental companies and automotive professionals remain eligible for this significant financial aid which covers 20% to 50% of installation costs.

However, companies can benefit from regional aid. For example, the Grand Est region offers regional aid for companies & associations, up to 50% of the excluding tax amount of the installation project, and up to €1500 per charging point. Similarly, the Normandy region offers aid for micro-enterprises & associations, up to 30% of the excluding tax amount of the purchase & installation of the charging infrastructure.

In addition, other measures, such as local subsidies (for example, in the Grand Est region, up to €1000 for tourism businesses), as in the Occitanie region (€1500 for the installation of smart terminals and €3000 for the installation of bidirectional terminals), can also finance part of the costs. Finally, it is important to remember that businesses can benefit from a reduced VAT rate of 5,5% on equipment and labor for the installation of an electric charging station.

6 numbers to keep in mind

• 1,5 million: this is the number of electric and rechargeable hybrid vehicles circulating in France
• 1,7 million: this is the number of charging stations in France, including public and private stations. A figure that places France among the best-equipped countries in the European Union, although with an uneven distribution across the territory
• 7 million: this is the number of charging points in service that the government wants to reach by 2030
• 150.000: this is the number of public charging points in France (including 20.000 in Île-de-France)
• 90%: this is the percentage of electric and plug-in hybrid vehicle recharges that are done at home and at work
• 60%: this is the proportion of French people who believe that access to a charging point is essential in the workplace