Tax reduction on businesses for the provision of a bicycle fleet

Verified 23 July 2025 - Directorate of Legal and Administrative Information (Prime Minister)

Companies subject tobusiness tax (IS) may benefit from a tax reduction related to the costs generated by the free provision of a fleet of bicycles to their employees. This can only apply if the fleet of bicycles is used for the movement of employees between their home and the workplace and in the limit of 25% of the purchase or rental price bicycles during each exercise considered.

In a given exercise, you have to distinguish the calculation of the maximum limit the tax reduction (based solely on the cost of acquiring or renting bicycles), and amount the tax reduction (based on all expenses related to the bicycle fleet).

All companies subject to business tax (IS) may benefit, under certain conditions, from a tax reduction in respect of the costs incurred by making available free of charge to their employees a fleet of bicycles for their journeys between their home and the workplace.

Companies that are partially exempt from or subject to business tax may also benefit from it.

Companies subject toincome tax (IR) cannot benefit from it.

A company can benefit from the tax reduction from the purchase of the first bicycle made available free of charge of its employees.

The bicycles eligible for the tax reduction are cycles (bicycles without an electric motor) and pedal-assisted cycles (bicycles with electric assistance).

The tax reduction relates to the provision of a fleet of employees' bicycles for their travel between home and work.

This tax reduction applies to expenses incurred up to December 31, 2027.

Please note

The company must be able to justify its employees use bicycles for their commute (for example via certificates of honor).

The costs of making a fleet of bicycles available free of charge for employees to travel from their home to their place of work may be included in the maximum limit 25% the purchase or rental price of bicycles during the exercise considered.

This purchase or rental price is considered all taxes included (VAT included).

Example :

If the company buys a single bike at €400 Including tax in year N, the maximum amount of business tax reduction will be €100 during that financial year (€400 x 25% = €100).

Please note

So the tax cut applies only for fiscal years in which bicycle purchases or rental charges are made.

This applies even if a fleet of bicycles is made available to employees during other financial years, and other expenses associated with this fleet are incurred by the business (premises, maintenance, insurance, depreciation expenseetc.).

Example :

In the absence of a bicycle purchase or rental fee during a fiscal year, the tax reduction limit will then be equal to €0 for this financial year (€0 x 25% = €0).

To determine the amount the reduction of business tax (IS), expenditure the following commitments made by the company must be taken into account:

  • Depreciation and amortization charges related to theacquisition of bicycles. These depreciation are generally calculated over a period of 3 to 5 years. For example, for a purchased bike €300 amortized over 3 years, the depreciation expense related to the acquisition of this bike is €100 for three years.
  • Depreciation, amortization or deductible expenses related to purchases or rentals of equipment necessary for security (including helmets, protections, reflective vests, locks)
  • Expenses ofinsurance against theft covering employees’ bicycle journeys between home and work
  • Expenses ofmaintenance of bikes
  • Depreciation and amortization expenses related to construction or atdevelopment of a parking area or space intended for bicycles. These depreciations are generally calculated over a period of 10 to 35 years.
  • Costs related to the rental of a parking area or premises intended for bicycles
  • Expenditure of bike rental committed by the company, if the company has subscribed to a rental contract for a fleet of bicycles of a minimum duration of 3 years

FYI  

All eligible expenditure must be calculated by exercise.

The tax reduction applies to thetax on businesses owed by the company in respect of the financial year in which the costs were incurred.

For Member companies of a group of businesses, the calculated tax reduction by each business of the group is transferred to the parent business. It is then set off against the business tax payable by the latter in respect of the group’s overall income.

Please note

One calculation aid sheet of the tax reduction fleet of bicycles can be used.

Where the amount of the tax reduction exceeds the amount of business tax due, the remaining balance shall not be neither reportable nor refundable.

Example :

In year N, a business A acquires 10 bikes for an amount of €6,000 INCL. VAT (€600 x10). This fleet is made available free of charge to its employees for travel between their home and their workplace. The limit of tax reduction is of €1,500 (€6,000 x 25% = €1,500).

In respect of year N, the costs incurred in acquiring and making available this fleet of bicycles are as follows:

  • Depreciation and amortization charges (bicycles): €1,300
  • Insurance costs: €100
  • Rental of a bicycle room: €90.

These expenses are recorded for a total amount of €1,490.

The tax reduction granted for the financial year N shall be equal to the total of such costs: €1,490 (for €1,490 < €1,500).

In year N+1, business A acquires 2 bicycles that it adds to its fleet for an amount of €1,200 TTC. The limit of tax reduction is of €300 (€1,200 x 25% = €300).

In respect of year N+1, the totals generated by the acquisition and availability of the fleet of 12 business A bicycles are:

  • Depreciation and amortization charges (bicycles): €1,560
  • Insurance costs: €120
  • Rental of a bicycle room: €90.

These expenses are recorded for a total amount of €1,770.

The tax reduction granted for the financial year N+1 shall be equal to the limit: €300 (for €1,770 > €300).

During exercise N+2, business A does not acquire any bicycles. The limit of tax reduction is of €0 (€0 x 25% = €0).

In respect of year N+2, the totals generated by the acquisition and availability of the fleet of 12 business A bicycles are:

  • Depreciation and amortization charges (bicycles): €1,560
  • Insurance costs: €120
  • Rental of a bicycle room: €90.

These expenses are recorded for a total amount of €1,770.

Business A does not benefit from any tax reduction for the year N+2, because the limit of tax reduction is of €0 .

Companies must declare their tax reduction on the declaration of tax reductions and credits n°2069-RCI-SD (cerfa n° 15252) within the same deadlines as their declaration of result:

Reductions and tax credits for the year

This form must be transmitted via the TDFC procedure or via taxes.gouv.fr.

One calculation aid sheet of the tax reduction fleet of bicycles is made available. It is not mandatory and should not be transmitted spontaneously to the administration.

Please note

In the case of businesses under the groups of businesses, the mother business must report tax reductions and credits No. 2069-RCI-SD each of the group member businesses, including its own, when filing the statement of the group’s overall result.

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