Federal government agrees on greening of company cars

The deductibility of costs related to company cars running on fossil fuels will be gradually phased out between 2025 and 2028.

Costs related to contracts concluded before 1 July 2023 will continue to fall within the scope of the current regime.

For hybrids purchased as from 1 July 2023, the deductibility of fossil fuel expenses will be limited to 50%.

Individuals installing charging stations at home will benefit from a tax reduction:

The amount for which a tax reduction can be granted is limited to 1.500 EUR per charging station and per taxpayer. The charging station must be “intelligent” and make use of green power.

Companies can benefit from an increased deduction, provided that the charging stations are accessible for the public.

Companies purchasing a zero emission truck or installing a tank infrastructure for hydrogen or an electric charging station can benefit from an increased investment deduction as from 2023.

The regime of the mobility budget will also be made more attractive as more options will qualify for the mobility budget such as electric steps, public transportation for family members and parking costs linked to the use of public transportation.

Please note that this is a political agreement. Although this is an important milestone, the modalities can still be changed during the parliamentary process.