Greenified fleets by 2026

It’s been a long time coming but we couldn’t be happier to see that our country is taking concrete measures veering towards a manageable and green future for Belgium’s corporate mobility issue. Earlier this week, Minister for Finance, Vincent van Peteghem gave the green light for the new bill aiming for a 5-year greenification process.  

Van Peteghem makes use of three main pillars to transition to a kind of mobility that is more in line with our quality of life and the environmental ambitions we so highly regard. Let’s try to make this more tangible:

Zero-emission company cars will be fiscally advantageous in comparison to fossil fuelled variants

In the nearby future, only zero-emission vehicles will be tax-deductible. As we cannot drastically throw everything overboard overnight, the government has decided to build in a buffer, starting now and running for the upcoming 5 years. This gives employers, leasing companies and employees the time to transition. In numbers:

1. Fossil fuel cars purchased before July 1, 2023 will adhere to a transitional procedure: the current tax-deduction regulations still stand
   

2. Fossil fuel cars purchased between July 1, 2023 and December 31, 2025 will adhere to a transitional procedure that gradually phases out:
   
   Deductibility in     2025 is 75%
                                   2026 is 50%
                                   2027 is 25%
                                   2028 is 0%
   

3. As of 2026, tax-deductibility for zero-emission cars will gradually drop to the current level of deductibility (cf. fossil fuel vehicles)
   
   Purchased in.        2026 tax-deductibility of 100%
                                   2027 tax-deductibility of 95%
                                   2028 tax-deductibility of 90%
                                   2029 tax-deductibility of 82.5%
                                   2030 tax-deductibility of 75%
                                   2031 tax-deductibility of 67.5%

4. For hybrid company cars, purchased after July 1, 2023, the tax-deductibility of petrol and diesel costs will be reduced to 50%.  

Expansion of the number of charging stations for electric cars

A push for a greener corporate mobility goes hand in hand with an increase of the number of electric vehicles. The government therefore wants to incentivize both individuals and companies to install charging stations.
Companies and organizations that invest in a public charging station between September 1, 2021 and August 31, 2024, qualify for a cost deduction. The cost deduction gradually phases out over the years:

1. Investments between September 1, 2021 and December 31, 2022 receive a cost deduction of 200%
   
   
2. Investments between January 1, 2023 and August 31, 2024 receive a cost deduction of 150%

Important side note here is that the stations have to remain easily accessible for third parties.‍

A diversified and flexible mobility budget  

Van Peteghem keeps on emphasizing the importance of a major modal shift when it comes to mobility. That is exactly why he wants to expand the mobility budget by making it more intuitive and flexible.

The mobility budget will immediately be available for all employees that either have a company car or that qualify for one.

Following points will be added to the list of things that are eligible for the mobility budget:

1. Financing costs (e.g. bike loans), parking costs and costs related to non-essential safety and visibility equipment for soft mobility
   
   
2. Electric transportation modes, like electric scooters, will be considered soft mobility too
   
   
3. Public transport passes and plans for family members living with the employee, as it replaces the use of the company car (e.g. bringing the kids to school)
   
   
4. Parking costs related to public transportation
   
   
5. Pedestrian bonus for commuting to work
   

6. Radius for housing costs extended to 10km around your office location. Capital repayments on mortgage loans now qualify too.