Nowadays, more and more French people are leaving their cars behind to get to their workplace. Ways of getting around are evolving, and electric scooters are among the trendy and eco-friendly means of transport to commute independently to work.
While the electric bike was already eligible for this annual subsidy, the parliament adopted, since November 12, 2020, the inclusion of EDPMs (motorized personal mobility devices), which include electric scooters, in the sustainable mobility allowance.
What is the sustainable mobility allowance?
For private sector users choosing this ecological mode of transport to get to work, it is possible to benefit from a bonus of 500 euros per year with the sustainable mobility allowance. Previously 400 euros per year per employee, the company can pay this amount tax-free for the employee and it is also exempt from social contributions for the employer. This new bonus of the sustainable mobility allowance including the electric scooter (and other EDPMs such as electric skateboards, unicycles, and hoverboards) encourages the French to make their home-to-work trips by clean transport post-lockdown.
Note that employees choosing to deduct professional expenses for their actual amount must add the amount of the sustainable mobility allowance to their taxable income or not deduct the expenses corresponding to their trips between home and workplace.
Which vehicles are covered by the sustainable mobility allowance?
Companies wishing to implement this sustainable mobility allowance can include in reimbursed transport expenses those related to the electric charging of employees' vehicles. Again, this possibility existed before but was limited to 200 euros annually. Now with 400 euros in 2021 and 500 euros from 2022, the means of transport concerned are as follows:
- electric or manual bike
- car in the context of carpooling as driver or passenger
- EDPMs rented or shared, as well as personal
- public transport excluding subscription fees
- electric scooters and electric motorcycles
Can be combined with public transport reimbursement
This sustainable mobility allowance is advantageous for the private sector because its implementation is cumulative with the employer’s contribution to public transport subscriptions, such as in Île-de-France with the Pass Navigo covered at 50%. If you use your EDPM (such as an electric scooter) in addition to the metro, bus, or train for your home-to-work commute, you can both receive the sustainable mobility allowance coverage and continue to be reimbursed for half of your transport subscription.
However, the total tax benefit of the sustainable mobility allowance cannot exceed the ceiling of 500 euros per year.
An exception for public sector employees
The sustainable mobility allowance FMD is implemented in the state public service but the allocation conditions have been set since a May 2020 decree with a maximum amount of 200€ unlike the private sector.
This sustainable mobility allowance is however not cumulative with the reimbursement allowance for public transport tickets. Employees interested in this subsidy must then declare on their honor that they use their electric vehicles listed above 100 days per year. A relatively simple way to obtain the sustainable mobility allowance.
Entry into force of electric scooters for 2022
The inclusion of personal electric scooters in the law was decided as part of the 2021 Finance Bill and will come into effect from January 1, 2022. In the interest of equality, the deputy of Sarthe Damien Pichereau proposed to complete this offer with personal electric scooters because they were then reserved only for residents who could benefit from an electric scooter rental service.
How to benefit from the sustainable mobility allowance with an electric scooter?
The criteria for granting the coverage of expenses under the form of the sustainable mobility allowance must be provided by a company agreement. It is therefore important to check with your employer if they have taken this sustainable mobility allowance into account and if not, to ask them and consult your Social and Economic Committee (CSE).
To benefit from this income tax-exempt aid, the employee must notably be able to provide a sworn statement or proof of the use of the aforementioned modes of transport, such as a purchase invoice for example.
As for employers paying employees a bike mileage allowance, they can continue to pay this allowance but it is then considered as payment of the sustainable mobility allowance.
And what about fuel expenses?
The sustainable mobility allowance is cumulative with the optional coverage of fuel expenses (or the charging of electric, plug-in hybrid, or hydrogen vehicles) incurred by employees for their trips. All this between their residence and workplace with a personal vehicle.
In this case, the sustainable mobility allowance FMD cannot be exempt from tax and social charges or only within a limit of 500 euros per year per employee.
The annual limit of 500 euros is therefore the maximum threshold for these two coverages. The exemption ceiling related to fuel expenses is set at 200 euros.
It should be noted that the coverage of fuel expenses is not cumulative with the mandatory reimbursement of public transport expenses, nor with the application of a specific flat-rate deduction for professional expenses.
Conclusion
The sustainable mobility allowance FMD is ultimately quite little known by most users making their home-to-work trip by electric scooter. So do not hesitate to contact your employer for coverage in order to benefit from the sustainable mobility allowance to use an electric scooter to get to your workplace.
It is important to be well informed, as this brand new scheme is also not very well known among business leaders. Yet you can benefit from it and participate in ecological and autonomous travel promoted by the mobility orientation law. Combining savings on fuel costs, transport costs, while being paid to use it (up to 500 per year per employee), that is the advantage of this mode of transport which is the electric scooter, just like the electric bike.
Also talk around you about the sustainable mobility allowance to help others benefit from this scheme promoting ecological travel.