French General Tax Code
In forceI.-1. Companies subject to corporation tax or income tax under a real taxation system may make a deduction based on the original value of new assets acquired, excluding finance costs, allocated to their business, when they fall within the categories of vehicles with a total authorised laden weight of 2.6 tonnes or more that exclusively use one or more of the following energies:
a) Natural gas and biomethane fuel;
aa) A combination of natural gas and diesel fuel necessary for the operation of a bi-fuel engine of type 1A as defined in Article 2 of Commission Regulation (EC) No 582/2011 of 25 May 2011 laying down detailed rules for the implementation and amendment of Regulation (EC) No 595/2009 of the European Parliament and of the Council as regards emissions from heavy commercial vehicles (Euro VI) and amending Annexes I and III to Directive 2007/46/EC of the European Parliament and of the Council;
b) ED95 fuel made up of a minimum of 90.0% ethyl alcohol of agricultural origin;
> c) Electrical energy c) Electrical energy;
d) Hydrogen;
e) B100 fuel made up of 100% fatty acid methyl esters, where the vehicle engine is designed for the exclusive and irreversible use of this fuel.
2. For the vehicles mentioned in 1 of this I with a total authorised laden weight of 3.5 tonnes or more, acquired from 1 January 2016 and until 31 December 2030 for those using the energies mentioned in a and b of the same 1, and from 1 January 2019 and until 31 December 2030 for those using the energies mentioned in c and d of the said 1, and from 1 January 2020 and until 31 December 2030 for those using the energy mentioned in e of the same 1, the deduction is 40%.
> By way of derogation from the first paragraph of this I, the deduction for the first year is 40%. By way of derogation from the first paragraph of this 2, for the vehicles mentioned in 1 of this I with a permissible laden weight greater than or equal to 3.5 tonnes and less than or equal to 16 tonnes, acquired from 1 January 2019 until 31 December 2030 for those using the energies mentioned in a to d of the same 1 and from 1 January 2020 until 31 December 2030 for those using the energy mentioned in e of the same 1, the deduction is 60%.
For the vehicles mentioned in the same 1 whose authorised laden weight is greater than or equal to 2.6 tonnes and less than 3.5 tonnes, acquired from 1 January 2019 and until 31 December 2030 for those using the energies mentioned in a to d of the same 1 and from 1 January 2020 and until 31 December 2030 for those using the energy mentioned in e of the same 1, the deduction is 20%.
The first three paragraphs of this 2 apply, under the same conditions, to vehicles using the energy mentioned in a bis of 1 of this I acquired from 1 January 2020 and until 31 December 2030.
II.- The deduction is spread on a straight-line basis over the normal period of use of the assets. If the asset is sold before the end of this period, it is only acquired by the company to the extent of the amounts already deducted from income on the date of sale, which are calculated pro rata temporis.
III.- A company that rents out a new property mentioned in I under the conditions provided for in 1 of article L. 313-7 of the Monetary and Financial Code may deduct an amount equal to 40%, or 60% in the case of an asset mentioned in the second paragraph of 2 of I of this article, or 20% in the case of an asset mentioned in the third paragraph of the same 2, of the original value of the asset, excluding financial costs, at the time the contract was signed. These contracts are those entered into from 1 January 2016 until 31 December 2030 for goods using the energies mentioned in a and b of 1 of I and from 1 January 2019 until 31 December 2030 for goods using the energies mentioned in c and d of 1 of I and for the vehicles mentioned in the second and third paragraphs of 2 of I using the energies mentioned in a to d of 1 of I, and contracts entered into from 1 January 2020 until 31 December 2030 for the goods mentioned in 1 of the same I and in the second and third paragraphs of 2 of the same I using the energy mentioned in e of 1 of the same I. This deduction is spread over the period mentioned in II. If the lessor or lessee acquires the asset, it may continue to apply the deduction. The deduction ceases as from the sale or termination by the company of the leasing or hire purchase option contract or of the asset and cannot be applied to the new operator.
The first paragraph of this III applies, under the same conditions, to new vehicles using the energy mentioned in a bis of 1 of I taken on lease under a contract entered into from 1 January 2020 until 31 December 2030.
The company that leases or rents the asset with a purchase option may not apply the deduction mentioned in I.
