News Archive: Grants for Electric Vehicles in France

Buy a new electric or hybrid car in France and obtain a grant on the purchase price of the vehicle and for the installation of a charging point.

As is happening in most other countries in Europe, the French government is encouraging the wider use of electric
cars through financial incentives to buyers.

The rules of engagement are forever changing and the generous
headline figures that are often cited are subject to detailed conditions that are sometimes difficult to
fulfil.

Nevertheless, if you do meet the criteria, a reasonable sum of cash is available, although you need
to be careful of inflated prices from dealers arising from the grants.

Broadly speaking, there are three main
measures in place:

Prime à la Conversion – a grant for scraping an eligible car and the
purchase of an eligible eco-friendly. This has been scrapped from 2nd Dec 2024.

Bonus Ecologique – a grant for the purchase of a new or eligible
second-hand electric or hybrid car.

Borne de Recharge – a grant for the installation of an electric recharge
point at you home.

There is also an additional grant available for many areas of Paris (see below).

These grants are cumulative.

i. Prime à la Conversion (2nd Dec 2024)

Since 1st December 2024 this grant is no longer available.

ii. Bonus Ecologique (2nd Dec 2024)

This is a grant towards the purchase or lease
of a new electric (or hydrogen) car or small van. The vehicle must be registered in France.

Vehicles must
also meet a minimum environmental score (carbon footprint), the details of which can be found at Environmental Bonus.

The grant does not
require that your existing vehicle is scrapped.

The purchaser must own the vehicle for at least a year, and
to have covered 6,000 kms before they can resell it.

The amount of assistance varies according to the price,
income of purchaser and type of vehicle.

The bonus is deducted from the price of the vehicle by the dealer or
reimbursed on application by you after the purchase of the vehicle.

The maximum purchase price of the vehicle
is limited to €47,000 inc vat. The bonus is, up to a maximum of €4,000.

The bonus is up to €4,000 for those with an income no greater than €16,300.

For those whose income is higher than €16,300, but no higher than €26,200 the grant is up to €3,000.

For those whose income is higher than €26,200 it is €2,000.

No grant is available for the purchase of a utility vehicle.

If you purchase the car through a dealer they should deal with the formalities, but if not you can make
application at Bonus Ecologique.

iii. Borne de Recharge (1st Jan 2024)

A tax credit (a grant if you do not pay income tax) is available to
those who buy a charging station for their electric or rechargeable hybrid car, to install it in their home or
co-ownership property.

Unlike the grants above it is available to second-home owners, provided you are
resident in France. It is also available to tenants.

The tax credit is 75% of costs up to €500 per
person, so a married couple (or those in a civil partnership) seeking two charging stations would be entitled to a
grant of up to €1,000. It is only available for the purchase of the charging station itself, not the
installation cost.

It is accessible to everyone, regardless of income, whether or not they are liable to
income tax. The tax credit is granted the year following the completion of the work.

The grant is only going
to cover part of the cost of the works, which will generally be in excess of €1,000, including labour
costs.

In order to claim the tax credit, you declare it in 2024 on your 2023 tax return.

There are also
grants for the installation of charging stations in co-ownership properties.