Tax break for bike-providing companies extended

The National Assembly voted on October 30, 2026, to extend a tax reduction for companies that provide free bicycles to employees for commuting between home and work. The original measure was set to expire on December 31, 2027, but it could now last until the end of 2030 if included in the 2027 finance law.

Amendment passed by narrow margin

The amendment, submitted by deputy Mickaël Bouloux as I-1856, was approved by 33 votes to 29. This decision modified the budget proposal but did not finalize the extension, which still needs to be confirmed in future legislation.

Change updates expiration date

The amendment updates article 220 undecies A of the general tax code, replacing the December 31, 2027, expiration date with December 31, 2030. It keeps the original principle of the tax aid and its limits intact, targeting companies subject to corporate tax that offer free commuting bicycles.

Eligible bicycle types and expenses

Both traditional bicycles and electric-assisted bicycles qualify for the measure. The tax reduction is calculated based on eligible expenses such as depreciation, maintenance, insurance, and certain safety equipment. The reduction is capped at 25% of the purchase or rental price of the bicycles each year.

Limit does not guarantee full discount

The 25% cap does not automatically apply to all purchases. For example, a 6,000-euro fleet purchase would have a maximum reduction of 1,500 euros for the year. The actual reduction depends on eligible expenses and the company’s corporate tax liability. Any excess is not refunded or carried over to future years.

Rental contracts must be long-term

Companies that rent bicycles instead of buying must sign contracts for at least three years to qualify for the tax benefit. This requirement might influence employers planning to continue renting after the current fiscal deadline in December 2027.

Amendment aims to boost related industries

The authors of the amendment hope the extension will help companies make better long-term decisions when signing contracts. They also note potential benefits for lessors, manufacturers, insurers, and repair shops, though these outcomes are still goals, not confirmed results.

Eligibility and application process

Companies interested in the tax reduction must meet specific criteria: they must be subject to corporate tax, provide free bicycles for commuting, justify usage, and track expenses annually. Companies only subject to income tax are not eligible. The declaration is made through form 2069-RCI-SD, with clear distinctions between the cost of the fleet and actual expenses used for the tax benefit.

Extension needs final approval

The extension to 2030 still requires approval during the remaining stages of the budget review. Employers considering investments can take this into account but should base current decisions on the existing provisions.