Eco-score, subsidies, recharging, taxation... what the 2027 PLF could change for electric cars

A stricter eco-score, preferential treatment for electric heavy vehicles, and stable vehicle taxes: the 2027 budget bill proposes adjusting various aspects of electric mobility without altering subsidies for individuals. An overview.

Revealed on October 1st, the 2027 budget bill arrives in a tense economic climate. The government aims for a deficit of 5% of GDP and seeks 43 billion euros in new measures, promising not to raise taxes broadly. This key document for the state budget comes at a time when rising fuel prices are pushing more drivers toward electric vehicles. Here’s what to keep in mind.

PLF 2027: Key Points for Electric Mobility

For private individuals, nothing would change in the immediate term: outside the scope of this text, the CEE subsidy continues, but its future depends on debates regarding CEEs.

The new resilience criterion in the eco-score could, eventually, disqualify certain models whose batteries are produced outside Europe from receiving subsidies.

The PLF would significantly favor electric trucks over diesel and gas-powered ones.

The eco-score: a “resilience” criterion that could change the game

This is the PLF measure that affects electric vehicles most directly, though it remains subtle. Article 28 would implement the European regulation for a “Net-Zero Industry Act.” This act requires adding a resilience criterion to subsidies for the purchase of certain technologies, including batteries.

In practice, the environmental score of electric vehicles, which determines eligibility for the EU subsidy, would no longer rely solely on the carbon footprint of their production. It would also include a resilience criterion: products from supply chains dominated by countries outside the European Union might be given lower priority. According to the explanatory document, China accounts for 50% of Europe’s battery supply, indicating a situation of dependence.

Fleets are directly affected. This score is also used to calculate the annual incentive tax for purchasing low-emission vehicles, which encourages large companies to make their fleets more environmentally friendly. However, the list of models with eco-scores already excludes many electric cars from the market. If this new measure is adopted, that list could become even stricter.

The specific criteria would be set through regulations. It is therefore too early to determine which models would be affected, or whether those already rated eco-friendly will retain their label until it is renewed. But the measure would clearly favor vehicles whose batteries are produced in Europe.

What about the EU subsidy?

The “electric private vehicles incentive,” which replaced the environmental bonus in July 2025, is not included in the PLF. The reason is quite simple: this measure is funded by energy savings certificates (CEE), not by the state budget. It no longer has an end date per a decree from December 2025, and the government confirms that the “Electrify France” plan will continue to be funded by CEE.

The mechanism remains controversial. While CEEs involve an “extra-budgetary” approach, they are not free: the state requires energy suppliers, including fuel distributors, to fund energy-saving measures each year, such as renovation projects or incentives for purchasing electric vehicles. This cost is then passed on to consumers through utility bills and pump prices, amounting to about 15 cents per liter according to some estimates.

With fuel prices so high, several presidential candidates propose eliminating or suspending CEEs to reduce motorists’ expenses. However, removing CEEs would also eliminate the purchase incentives they fund, posing a significant obstacle to electric vehicle sales.

Automobile taxation: overall stability, but some adjustments needed

A few months before the presidential elections, the PLF 2027 confirms the “overall stability” of automobile taxation for 2027. The thresholds for the CO₂ penalty and the weight penalty would remain unchanged. Article 25, however, would introduce two adjustments:

The first targets light hybrids, known as “micro-hybrids.” Non-rechargeable hybrids currently enjoy a 100 kg reduction in their weight for the weight penalty, but micro-hybrids must be excluded from this benefit starting January 1, 2027. However, the criterion defining them—electric power below 30 kW—is considered “technically unverifiable” by the government. The PLF proposes replacing this with an emissions threshold: non-rechargeable hybrids emitting less than 125 g of CO₂/km would retain the reduction, while those reaching or exceeding this threshold would lose it. This would particularly affect light hybrids sold by Stellantis group brands (Peugeot, Citroën, Opel, Fiat, DS). As a result, the tax gap with electric vehicles, which remain exempt from such penalties, would widen further.

The second relates to company vehicles. A decree published in the Official Bulletin of Public Finance on April 30, 2025, allowed companies to recover, under certain conditions, VAT on the purchase or rental of a vehicle provided to an employee in exchange for rent. Some companies took advantage of this arrangement: they deducted the full VAT paid upfront but charged the employee a rent amount lower than market price, thus paying only minimal VAT. Article 25 would introduce a corrective mechanism provided for under European law: VAT would be calculated based on the “normal” value of the service, that is, the price an employee would pay to an independent rental company or, failing that, the cost incurred by the company itself.

Finally, Article 2 would strengthen, for income in 2026, the subsidies that employers can provide for commuting between home and work. Coverage of fuel costs would be tax-free up to 1,000 € and available to all employees who use their personal vehicles. For charging an electric vehicle, a rechargeable hybrid vehicle, or a hydrogen vehicle, as well as for sustainable mobility packages, the cap would be 600 €. This measure addresses the surge in fuel prices but would benefit conventional car owners more than electric vehicle users.

Charging: No refund for the tax credit at charging stations

Not surprisingly, the PLF 2027 does not restore the tax credit for installing a home charging station, which covered 75% of the costs up to 500 €. For reference, this credit expired on January 1, 2026. The reduced VAT rate of 5.5% on the supply and installation of a charging station remains in place. The same applies to the subsidies from the ADVENIR program, also funded by CEE, particularly for condominiums.

On the operator side, the future IRICC system outlined in Article 24 would incorporate renewable electricity used for charging. Providers of public charging stations, as well as operators of private heavy-duty charging stations, could generate certificates and sell them to fuel suppliers subject to the requirement. This would represent an additional source of revenue that could potentially reduce the cost of public charging stations. However, everything will depend on the level of ambition set for this system, which is still under discussion. Implementation of IRICC is scheduled by December 31, 2027, with the administration intentionally allowing a long timeframe to optimize the mechanism in coordination with various sectors. It should be noted that this system will replace the current TIRUERT and, most importantly, implement the European RED III directive on renewable energy. In Germany

Well, the mechanism is already in place through the greenhouse gas reduction quota (THG-Quote for ordinary people).

Heavy vehicles: electric trucks could widen the gap

In terms of progress, it is in freight transport where the PLF would be most favorable to electric vehicles. The depreciation allowance for electric or hydrogen trucks and vans remains unchanged. Starting in 2025, companies can deduct a portion of the extra cost of these vehicles compared to diesel equivalents from their profits: 40% for vehicles between 2.6 and 3.5 tonnes, 115% for those between 3.5 and 16 tonnes, and 75% for heavier vehicles. This regime lasts until 2030.

Article 24 would introduce a second measure by establishing a reduced excise duty of 0.5 €/MWh on electricity used for charging vehicles over 7.5 tonnes used in road freight transport. This measure is not yet guaranteed to be adopted. It must first be approved by Parliament and, more importantly, gain approval from the European Union Council. If all conditions are met, it would take effect no later than six months after that approval.

In the industrial sector, the tax credit for investments in green industry (C3IV) would be extended to batteries for electric vehicles and permanent magnets used in electric motors. This is intended to support European production, which the new resilience criterion of the eco-score aims to promote.

And now? A text that is still subject to further changes.

The PLF 2027 is merely a draft: none of the measures outlined here have yet been adopted. Submitted to the National Assembly on October 1, the document is first reviewed by the finance committee, then in a public session, before going to the Senate. Parliament has 70 days to make a decision.

In practice, each measure can be amended, removed, or supplemented along the way. As usual, amendments related to vehicle taxation are expected each year. It must be noted that the current circumstances make the outcome particularly uncertain. The government only holds a relative majority, and the review of the 2026 budget already required the use of a special law at the beginning of the year. With the presidential election approaching, the executive itself presents this budget as “reversible” and open to compromise... To be continued!