Paris, France – The French General Directorate of Public Finance (DGFiP) announced on July 30 a significant update to its administrative doctrine concerning the exceptional tax deduction regime for companies acquiring new clean or zero-emission commercial vehicles. This revision, crucial for the nation's decarbonization efforts and the burgeoning clean mobility sector, provides critical clarity and adjustments to existing incentives.

The core of the updated doctrine clarifies the application of the exceptional deduction for commercial vehicles utilizing exclusively electrical energy or hydrogen. For such vehicles, the deduction will no longer apply to acquisitions made after January 1, 2025. This marks a strategic shift, potentially signaling a move towards more targeted or revised incentive structures for fully zero-emission fleets in the future.

Crucially, the updated provisions introduce an extended timeline for vehicles that operate simultaneously or alternatively via an electric battery or hydrogen fuel cell alongside another eligible energy source. For these dual-energy or hybrid clean commercial vehicles, the exceptional deduction regime will remain in effect for acquisitions or engine retrofitting until December 31, 2030. This extension underscores France's commitment to supporting a broader range of clean vehicle technologies during the transition phase, acknowledging the practicalities and technological readiness of various solutions for commercial applications.

"This updated doctrine provides essential long-term visibility for businesses planning their fleet transitions," stated a spokesperson from the French Ministry of Economy and Finance, speaking on background. "By extending incentives for hybrid and dual-fuel clean vehicles, we ensure a smoother, more pragmatic pathway to decarbonization for sectors where full electrification or hydrogen adoption might still face infrastructure or operational hurdles in the immediate term, while maintaining our commitment to EU state aid compliance."

The DGFiP's revision also explicitly aligns the deduction regime with EU Commission Regulation 651/2014. This alignment is vital, as Regulation 651/2014, known as the General Block Exemption Regulation (GBER), sets out the conditions under which certain categories of state aid are compatible with the internal market without prior notification to the European Commission. Ensuring compliance prevents potential challenges to the deduction scheme and provides legal certainty for companies benefiting from it.

The French market for commercial electric and hydrogen vehicles has seen steady growth, driven by both regulatory pressures and increasing corporate sustainability targets. In 2023, registrations of electric light commercial vehicles in France increased by over 30% year-on-year, reflecting a strong industry push towards cleaner fleets. This tax incentive, despite its evolving structure, remains a significant financial lever for businesses, particularly small and medium-sized enterprises (SMEs), looking to invest in more sustainable transportation solutions. The policy's nuances reflect a pragmatic approach to fostering a diverse clean energy vehicle ecosystem, balancing ambitious environmental goals with economic realities and technological development timelines.