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    France confronts biofuel tax dispute in 2026 budget proposal.

    Proposed Budget Cuts for Alternative Energies: Implications for Hauliers

    In a significant move that has raised considerable concern among transport federations, recent statements indicate that upcoming budget plans will eliminate crucial support for alternative energy initiatives. This shift threatens to undermine the investments made by numerous small and medium-sized hauliers who have taken steps toward adopting cleaner technologies like electric trucks, bioNGV, B100 biodiesel, HVO, and the necessary infrastructure to support them.

    The Impact of Cutting Key Support Schemes

    The statement from various federations highlights that removing favorable taxation and the “super-depreciation” allowance for low-emission vehicles could have far-reaching consequences. These support schemes were designed to create a stable environment for hauliers looking to invest in greener alternatives. The federations argue that, without these incentives, many of these companies may regress to using diesel engines, which poses a significant contradiction to national climate targets.

    According to the organizations, these investments have been underpinned by public policies and established European objectives. The sudden removal of such tax supports could lead to a situation where recent assets become stranded, jeopardizing the hard work that has gone into transitioning fleets toward more sustainable options.

    The End of the B100 Tax Advantage

    Further backing the concerns of the federations is the official budget annex that details tax expenditures. Specifically, it confirms that the special excise rate for B100 biodiesel, known as the “tarif particulier pour le B100,” will be phased out by 2025. This budget item, which has cost the state approximately €148 million annually, will be missing entirely from financial plans in 2026.

    In a somewhat contrasting development, support for superethanol E85 remains intact, although it is set to drop from €501 million in 2025 to €360 million in 2026. Notably, the ED95 scheme for heavier vehicles is expected to continue without changes.

    Refocusing the Super-Depreciation Scheme

    Alongside the cutbacks on tax advantages for certain biofuels, Article 13 of the Finance Bill proposes a refocus of the super-depreciation scheme. This scheme, which was once available to a broader array of transitional fuel vehicles, will now be limited exclusively to zero-emission vehicles, specifically electric and hydrogen trucks. As a result, transitional fuels like bioNGV and biodiesel will no longer qualify for this tax incentive once the new regulations come into force. However, operators will be granted a brief grace period until 2027 to adapt to these changes, ostensibly to avoid destabilization in the industry.

    Hauliers’ Call to Action

    In light of these developments, the four federations have issued a rallying cry to the government, urging it to reconsider the cuts to B100 and to maintain the existing fiscal framework for biofuels. They stress that preserving these financial supports is essential to secure the investments hauliers have already made. Additionally, they emphasize the importance of continued collaboration for fleet electrification, particularly advocating for the integration of depot charging infrastructure within the anticipated IRRIC investment scheme outlined in the upcoming DADUE bill.

    Outlook for the Finance Bill Discussions

    The debate surrounding the Finance Bill is expected to unfold in the National Assembly later this autumn. If the budget proposals remain unchanged, the termination of fiscal advantages for B100 could take effect as of January 1, 2026. Such a shift would significantly alter the economic landscape for biofuel-powered road transport in France, challenging the very essence of the progress made toward cleaner transportation solutions.

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