Chapter I: Internal taxes.

I.-Those liable for the excise duty on energy mentioned in article L. 312-1 of the code of taxes on goods and services and levied on products in the gas oil, petrol and jet fuel tax categories are liable for an incentive tax on the use of renewable energy in transport.

For the purposes of this article:

1° Petrol refers to products in the petrol tax category within the meaning of Article L. 312-22 of the French Code of Taxes on Goods and Services, other than the aviation gasoline referred to in Article L. 312-82 of the same Code;

2° Diesel refers to products in the diesel tax category within the meaning of Article L. 312-22 of the French Code of Taxes on Goods and Services. 312-22 of the French Goods and Services Tax Code;

3° Jet fuels are products in the jet fuel tax category within the meaning of Article L. 312-22 of the French Goods and Services Tax Code, including those mentioned in Article L. 312-58 of the same code;

4° The ENR Directive means Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources, in the version in force on 1 January of the year in which the tax becomes chargeable;

5° Crops intended for human or animal consumption and assimilated residues are crops as defined in Article 2.40 of the ENR Directive as well as residues as defined in Article 2.43, when they are derived from the plants mentioned in Article 2.40 and are not advanced raw materials. A decree determines the conditions under which intermediate crops must be considered, for the application of this article, as not falling within the scope of the same 40;

6° Advanced raw materials are understood to be the products mentioned in Part A of Annex IX of the ENR Directive;

7° Used fats and oils are understood to be the products mentioned in Part B of Annex IX of the ENR Directive;

8° Renewable hydrogen is understood to be that defined in the second paragraph of Article L. 811-1 of the Energy Code;

9° Biomass refers to the biomass defined in Article 2.24 of the ENR Directive.

By way of derogation from 1° and 2° of this I, the ethanol diesel referred to in Article L. 312-80 of the French Tax Code for goods and services is taken into account as petrol.

II - The chargeable event occurs and the incentive tax relating to the use of renewable energy in transport is payable at the time when the excise duty on energy levied on the products mentioned in I becomes payable in application of the provisions mentioned in article L. 312-88 of the code of taxes on goods and services.

III - The incentive tax relating to the use of renewable energy in transport is based on the total volume, respectively, of petrol, diesel and jet fuel for which it became chargeable during the calendar year.

The amount of the tax is calculated separately for petrol, diesel and jet fuel.

This amount is equal to the product of the base defined in the first paragraph of this III by the tariff set in IV, to which is applied a coefficient equal to the difference between the national target percentage for the incorporation of renewable energy in transport, set in the same IV, and the proportion of renewable energy determined under the conditions set out in V. If the proportion of renewable energy is greater than or equal to the national target percentage for the incorporation of renewable energy in transport, the tax is zero.

IV.-The tax rate and the national target percentages for the incorporation of renewable energy in transport are as follows:

V.-A.-The proportion of renewable energy is the quotient between the quantity of renewable energy defined in B and the quantity of energy contained in the products included in the base.

These quantities are evaluated in terms of their lower calorific value.

B.-1The quantity of renewable energy mentioned in A is equal to the sum of the following quantities:

1° The quantities of energy produced from renewable sources contained in the fuels included in the tax base that the taxpayer owes, with the exception of those mentioned in b of 3° of this 1;

2° The quantities of electricity from renewable sources used to power road vehicles in France by means of recharging infrastructures open to the public that the taxpayer operates.

3° The quantities of energy contained in renewable hydrogen used under one of the following conditions:

a) The hydrogen is supplied by the taxpayer in France to power the fuel cells of electric motors used to propel vehicles ;

b) The hydrogen is used for the production of products included in the tax base that the taxpayer owes, including for the production of intermediate products, insofar as it contributes to their energy content;

c) The hydrogen is used by the taxpayer in France for the refining of petroleum products or the hydrotreatment of biomass.

The quantities of energy produced from renewable sources and the quantities of electricity from renewable sources, as well as the quantities of energy contained in renewable hydrogen, corresponding to the accounting rights acquired by the taxpayer in accordance with VI, are added to the amount obtained. Those transferred by the taxpayer in accordance with the same VI are subtracted from the amount obtained.

The quantities mentioned in 2° and 3° of this 1 may be entered in the accounts either for the purposes of calculating the incentive tax relating to petrol or for the purposes of calculating the incentive tax relating to diesel, as the same quantity may only be taken into account once.

2. The quantities mentioned in 1 of this B are entered in the accounts at their real value, subject to the rules laid down in C to E for certain raw materials and categories of energy. Soya oil and palm oil products, including PFAD, are not considered biofuels.

3. Renewable sources are those mentioned in article 2.1 of the ENR directive.

Electricity that is not supplied from a direct connection to an installation producing renewable electricity is deemed to be renewable up to the average proportion of renewable energy recorded by the European Commission:

1° For the electricity mentioned in 2° of 1 of this B, in France, over the two years preceding the due date;

2° For the electricity used to produce hydrogen by electrolysis, in the State where the hydrogen is produced, over the second year preceding the due date.

4. For the application of 1, renewable energy is only accounted for when the following conditions are met:

1° The traceability of products in which renewable energy is contained is ensured from their production under conditions defined by decree, taking into account their specific characteristics and the specific calculation rules provided for in C and E. The application of more advantageous calculation rules may be subject to stricter traceability conditions;

2° The quantities of electricity containing the renewable energy are measured and communicated to the administration under conditions defined by decree;

3° When the renewable energy is contained in products made from biomass, the latter meet the sustainability and greenhouse gas emission reduction criteria mentioned in 1 to 11 of Article 29 of the ENR Directive, verified under the conditions set out in Article 30 of the same Directive.

C.-For the application of 1° of 1 of B of this V, the quantities of energy from the raw materials mentioned below that exceed the thresholds indicated, assessed by category, are not taken into account:

Raw materials that fall into both categories 1 and 2 of the table in the second paragraph of this C are accounted for under the following conditions:

1° For quantities that do not lead to the threshold for category 2 being exceeded:

a) Poor sewage is taken into account up to 50% of its energy content for the application of the threshold for category 2 and up to 50% for the application of the threshold for category 1;

b) Residual starches are taken into account at 100% of their energy content for the application of the category 2 threshold;

2° Quantities which exceed the category 2 threshold are taken into account at 100% of their energy content for the application of the category 1 threshold.

D.-For the application of 1° to 3° of 1 of B, the quantities of energy other than that from advanced raw materials contained in the products included in the base and leading to the difference between the target percentage mentioned in IV and the amount indicated in the following table being exceeded are not taken into account:

E.-For the application of 1° to 3° of 1 of B, the quantities of energy are recorded after application of the coefficient indicated in the following table, for a fraction that cannot, after application of this coefficient, exceed the threshold indicated in the same table. Above this threshold, the quantities of energy are recorded at their actual value, where applicable within the limits provided for in C or D.

VI.-1. The person liable for the incentive tax relating to the use of renewable energy in transport may acquire, including for a consideration, rights to account for additional quantities of renewable energy, under the conditions set out in B of V, from other persons liable for this tax or from persons who operate recharging infrastructures open to the public who supply electricity in France to power road vehicles, who supply hydrogen for the needs mentioned in a of 3° of 1 of B of V or who use hydrogen for those mentioned in c of the same 3°.

The rights thus transferred are accounted for in determining the quantity of renewable energy in accordance with the procedures set out in B to E of the same V, applicable in respect of the same year to the materials to which these rights relate.

The transfer of rights does not lead to any change in the ownership of the quantities to which they relate. For the transferor, it does not result in any reduction in the quantity of energy contained in the products included in the basis of assessment for the tax mentioned in A of the said V, and for the purchaser, it does not result in any increase in this same quantity.

2. Rights relating to the same quantity of energy may not be transferred more than once.

Where the transferor is liable for the incentive tax, only the rights to account for quantities that lead, for the purposes of calculating the tax that he owes, to the national target percentage for the incorporation of renewable energy in transport or one of the thresholds provided for in C to E of V being exceeded may be transferred.

3. The transferor is jointly and severally liable for payment of the additional tax resulting from failure to comply with the conditions set out in B of V.

VII - The Minister responsible for the budget may, for a renewable period of no more than thirty days, exclude from the basis of assessment for the incentive tax on the use of renewable energy in transport the volumes for which it becomes payable during this period, when the following conditions are met:

1° Exceptional supply difficulties lead to a national or local shortage of one or more of the fuels mentioned in I and require strategic petroleum stocks to be made available at short notice;

2° The incorporation of renewable energy into fuels is likely to exacerbate supply difficulties.

The Minister responsible for the budget may limit the exclusion to those products or geographical areas where supply difficulties are the greatest.

VIII - A decree sets out the documents and evidence that must be provided by the taxpayer in order for the products to be taken into account in determining the proportion of renewable energy in accordance with this article.

IX -The incentive tax relating to the use of renewable energy in transport is declared, liquidated and, where applicable, paid by the taxpayer in one go, no later than 10 April of the year following the year on the basis of which the tax base is determined.

However, in the event of permanent cessation of taxable activity, it is declared and, where applicable, paid within thirty days of the date of cessation of activity. For the purposes of determining the tax base, only products in respect of which the incentive tax on the use of renewable energy in transport became payable before this date are taken into account.

The incentive tax relating to the use of renewable energy in transport is collected and controlled according to the same procedures and subject to the same penalties, guarantees, securities and privileges as the excise duty on energy mentioned in article L. 312-1 of the code of taxes on goods and services and levied on products falling into the tax categories of diesel, petrol and jet fuel. Claims are presented, investigated and judged according to the rules applicable to this same tax.

X.-This article is not applicable in Guadeloupe, French Guyana, Martinique, Reunion Island and Mayotte.