Businesses and Electric Cars: What Changes Can We Expect by 2025?
As electric and plug-in hybrid vehicles continue to gain popularity, companies must prepare for significant regulatory changes that will take effect in early 2025. These changes, governed by the Mobility Framework Act (LOM) and the Climate and Resilience Act, aim to accelerate the ecological transition while imposing new requirements on employers.
End of Free Charging for Employees
Until now, companies have been able to offer their employees free charging for their electric vehicles at the workplace without this being considered a benefit in kind. However, effective January 1, 2025, this policy will end. Free charging will now be reclassified as a benefit in kind, which will result in social security contributions for the company and potential taxation for employees.
In light of this new regulation, employers will have to decide whether to cover these additional costs or implement a billing system for their employees. This change is part of URSSAF’s effort to standardize benefits in kind, particularly with regard to company vehicles powered by internal combustion engines, which will also see changes to their tax treatment.
Requirements Reinforced by the Mobility Framework Act (LOM)
Three major deadlines mandated by the LOM will take effect on January 1, 2025:
1. Installation of charging stations: Companies with parking lots must install one charging station for every 20 parking spaces, with at least one space adapted for people with reduced mobility (PRM). Ultimately, 5% of parking spaces must be equipped with charging stations, a percentage that could be raised to 10% depending on future European directives.
2. Fleet Electrification: Companies with more than 100 vehicles will be required to electrify at least 20 percent of their fleet. This percentage will gradually increase to 40 percent by 2027 and 70 percent by 2030, in accordance with the Climate and Resilience Act.
3. Pre-wiring of parking facilities: Parking facilities in new buildings, as well as those undergoing major renovations, must be pre-wired to facilitate the future installation of charging stations. For existing buildings in urban areas with more than 50,000 residents, this requirement will apply to 10% of parking spaces.
Impact of Low-Emission Zones (LEZs)
Starting January 1, 2025, all French metropolitan areas with more than 150,000 residents will be required to establish low-emission zones (LEZs). Although this measure does not directly target businesses, it will affect their employees’ mobility and encourage them to accelerate the electrification of their fleets or promote the use of personal electric vehicles. It could also prompt employers to incorporate alternative mobility solutions into their plans, such as carpooling or company bicycles.
What financial assistance is available to support these changes?
While national grants such as the ADVENIR program no longer apply to most businesses, regional and local assistance remains available. For example:
• In the Grand Est region, a grant covering up to 50% of the pre-tax cost of installing charging stations, with a cap of €1,500 per station.
• In the Normandy region, microbusinesses can receive a subsidy covering 30% of the pre-tax cost of the equipment.
• The reduced VAT rate of 5.5% for the purchase and installation of electric vehicle charging stations remains in effect.
A Profound but Costly Transformation
While the electrification of vehicles represents an undeniable step forward for the environment, new requirements and the end of certain tax and social benefits are complicating matters for businesses. Between regulatory compliance and incentives to adopt sustainable solutions, 2025 is shaping up to be a pivotal year for electric mobility within organizations.
To adapt, companies will need to anticipate these changes by investing in the necessary infrastructure, while exploring available assistance to mitigate the financial impact.
