Electric company car: what are the employer's obligations in 2025?

‍Electric company cars are gradually making their way into companies, buoyed by tax incentives and an increasingly strict LOM law. But what are employers' obligations when providing their employees with an electric vehicle? Between the benefit in kind, the responsibility for recharging and the installation of charging stations in the workplace, the rules are evolving and require a precise understanding to avoid mistakes. Since the new legislative changes of 2025, it is essential for companies to take these changes into account and adopt best practices to optimize their electric fleet while complying with the law.

Electric company car: what are the employer's legal obligations?

La mise à disposition d’une voiture de fonction électrique par une entreprise à ses salariés implique un cadre réglementaire précis. Contrairement à un véhicule de service, qui est utilisé exclusivement pour des missions professionnelles, la voiture de fonction peut être employée à des fins personnelles, ce qui génère des obligations spécifiques pour l’employeur.

Comply with current standards and environmental commitments

In France, the transition to electric vehicles is strongly encouraged by legal and fiscal measures. Since January 2022, the French Mobility Orientation Act (LOM) has required companies to gradually renew their fleets with low-emission vehicles. Companies with fleets of over 100 vehicles must include a 10% quota of electric or plug-in hybrid vehicles when renewing their fleets. This percentage increases every year, making the provision of an electric company car increasingly essential.

Employers must also ensure that cars provided meet the CO₂ emissions criteria imposed by European regulations. Since 2021, the standard imposes a maximum of 95 g of CO₂/km for new vehicles, on pain of financial penalties for manufacturers. Opting for an electric fleet therefore makes it possible to avoid any restrictions and benefit from a tax advantage on company vehicle tax (TVS), which is exempt for electric models.

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Supervise vehicle use and establish clear rules

An employer is obliged to regulate the use of an electric company car by means of a contract or a specific clause in the employment contract. This document must specify :

• Authorized use of the vehicle (professional and/or personal).
• Maintenance and recharging conditions (paid for by the company or the employee).
• Employee obligations (compliance with driving rules, reporting incidents, returning the vehicle when leaving the company).

If the electric company car is used outside a strictly professional context, it is considered a benefit in kind subject to social security contributions. It must be valued and declared for tax purposes in accordance with URSSAF rules.

By structuring these obligations, the employer guarantees optimum use of the vehicle, while complying with current regulations. But beyond the legal aspects, there is another crucial issue at stake: the cost and valuation of the benefit in kind linked to the use of an electric company car.

How is the benefit in kind of an electric company car calculated?

When an employer provides an electric company car for personal use, this constitutes a benefit in kind subject to social security contributions. Its evaluation is essential for the company, as it has an impact on taxation and social charges.

General rules for calculating benefits in kind

URSSAF provides two methods for determining the value of the benefit in kind for an electric vehicle:

1. If the employer does not pay for the fuel :

• For vehicles less than 5 years old: the benefit in kind is equal to 15% of the vehicle's purchase cost, including tax. 
• For vehicles over 5 years old: the benefit in kind is equal to 10% of the vehicle's purchase cost, including tax.
• For leased vehicles: the benefit in kind is equal to 50% of the purchase cost (incl. VAT) of the vehicle.

2. If the employer pays for the fuel

• For vehicles less than 5 years old: the benefit in kind is equal to 20% of the vehicle's purchase cost, including tax. 
• For vehicles over 5 years old: the benefit in kind is equal to 15% of the vehicle's purchase cost, including tax.
• For leased vehicles: the benefit in kind is equal to 67% of the purchase cost (incl. VAT) of the vehicle.

For electric cars, an allowance of 70% on the benefit in kind is applied, with a ceiling of €4,582 per year. This incentive considerably reduces the tax impact of an electric company car compared with a combustion-powered vehicle.

Recharging costs and their impact on benefits in kind

One of the particularities of electric cars is the management of their recharging, which can be carried out at the workplace, at home or at public charging stations. The employer can choose to cover all or part of the recharging costs, but this has an impact on the benefit in kind:

• Charging at the workplace:
  If the company provides charging stations accessible to employees, electricity consumption is not considered a benefit in kind. The employer can therefore offer recharging free of charge without generating additional social charges.
• Charging at the employee's home:
  If the company pays for the installation of a home charging station, it can benefit from a 50% exemption from social security contributions on the purchase, installation and maintenance. Electricity costs for recharging are 100% exempt from social security contributions.
• Charging at public charging points:
  If the employee uses public charging points, the employer may reimburse the expenses incurred, subject to presentation of supporting documents. This reimbursement is then included in the calculation of actual expenses for the purpose of assessing the benefit in kind.

By controlling these parameters, a company can optimize the tax and social costs of an electric company car, while facilitating its adoption by employees. But beyond the tax aspect, one question remains essential: who really has to pay for the recharging of an electric company car used at home?

Who pays for recharging an electric company car used at home?

Covering the cost of recharging an electric company car at home is a key issue for employers. Between legal obligations, tax exemptions and internal agreements, it is essential to establish a clear policy to avoid any conflict or ambiguity.

Is the employer obliged to pay for home recharging?

There is currently no legal requirement for companies to cover the electricity costs associated with recharging an electric company car when it is plugged in at the employee's home. However, some companies choose to do so, to facilitate the adoption of electric vehicles and encourage sustainable mobility.

The employer, fleet manager or HR manager in charge of reimbursements can cover these costs in various ways:

• Reimbursement of top-up costs upon presentation of proof.
• Monthly flat-rate included in the benefit in kind of the vehicle.
• Partial or total coverage of the cost of installing a recharging station at the employee's home.

Installing a home recharging point: who pays and what support is available?

If an employee has an electric company car, the employer may decide to install a charging station at home to simplify the use of the vehicle. This installation represents a considerable cost, but it can be optimized thanks to various forms of assistance:

• Crédit d'impôt pour la transition énergétique (CITE): up to 75% of the cost of installation, up to a maximum of €500 per terminal.
• Assistance from local authorities: some cities and regions, such as Lyon and Toulouse, offer subsidies for the installation of home charging stations.
• ADVENIR subsidies: for companies that finance the installation of charging stations for their employees.

In most cases, if the company pays for the installation of a home charging station, this cost is considered a benefit in kind, since the electric company vehicle is also used for personal purposes. However, only 50% of the expenses incurred will be included in social security contributions.

What regulatory changes are planned for electric company cars in 2025?

Since January 1, 2025, a number of regulatory changes have had an impact on companies providing electric company cars. These changes concern quotas for low-emission vehicles, taxation of benefits in kind, and obligations relating to company charging stations.

Gradual increase in the number of electric vehicles in company fleets

The French Mobility Law (Loi d'Orientation des Mobilités - LOM ) already requires companies with fleets of over 100 vehicles to include 10% electric or plug-in hybrid vehicles when renewing their fleets. Since 2025, this quota has increased to 20%, rising to 40% in 2027 and 70% in 2030.

Companies that fail to meet this obligation risk financial penalties, which are still under discussion. These regulations aim to accelerate the energy transition and reduce dependence on combustion-powered vehicles.

End of certain tax exemptions on benefits in kind

Currently, the evaluation of thebenefit in kind for an electric company car benefits from a 70% allowance, with a ceiling of €4,582 per year. However, this incentive remains uncertain, and it is not yet certain whether this allowance will be renewed in future years.

If this deletion is confirmed, it could slightly increase the tax cost for companies, prompting them to rethink their vehicle provision policy and give preference to more affordable models or alternative mobility solutions.

The obligation to install charging stations in the workplace

Since 2025, it has been compulsory for companies with parking lots of more than 20 spaces to install charging stations for their employees. This measure is part of the government's drive to accelerate the development of charging infrastructure to support the electrification of company fleets.

Employers must take this obligation into account by setting up projects to install charging stations on their sites. Subsidies such as the ADVENIR program or regional grants can finance up to 50% of the installation cost.

These regulatory developments confirm that the electrification of company cars is no longer an option, but a necessity for businesses.

How to optimize costs and structure an effective electrification strategy?

Switching to electric company cars is a strategic decision that needs to be optimized to avoid a cost explosion and ensure a smooth transition. Between the choice of vehicles, recharging management and tax benefits, there are several levers that companies can use to structure the efficient electrification of their fleets.

Select the right vehicles to control TCO

TCO (Total Cost of Ownership) is a key indicator for comparing an electric car with a combustion model. It takes into account :

• Purchase price or long-term leasing cost.
• Fuel savings: electricity is much cheaper than petrol or diesel.
• Maintenance costs: up to 30% lower than for internal combustion vehicles.
• Tax incentives (TVS exemption, book depreciation, etc.).

Choosing models adapted to employees' needs is essential. A needs assessment must be carried out upstream to avoid under-utilized vehicles or vehicles unsuited to daily commuting.

Installing a high-performance recharging network on your premises

Managing recharging is a key factor in preventing the electrification of company cars from becoming a logistical headache. There are several solutions available to employers:

• On-site charging stations: essential for stress-free daily charging.
• Partnerships with public charging networks: enabling employees to charge their vehicles while on the move.
• Help with the installation of a home terminal Home charging station: simplifies vehicle use while reducing costs for the company.

Calling on a specialized player like Bump means you can install and manage an optimized network of charging stations, while benefiting from subsidies and financial aid tailored to the needs of your business.

Adapt internal policy and raise employee awareness

To successfully adopt electric vehicles and create your own company mobility planit is crucial to support employees in this transition. A clear user charter must be drawn up, including :

• Conditions of use of the electric company car.
• Rules for recharging and reimbursing expenses.
• Valuation of benefits in kind and their impact on salary.

Eco-driving training sessions can also be offered to optimize vehicle autonomy and reduce energy costs.

By structuring an effective electrification strategy, companies can not only comply with regulations, but also make significant savings while strengthening their commitment to the environment. The issue is no longer whether they should go electric, but rather how to do it in the smartest, most cost-effective way. 🚀

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