France offers a “sustainable mobility allowance” to avoid traffic jams

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A decree published in the official state journal records the creation of the “sustainable mobility allowance” (sustainable mobility package), a fundamental measure of the law known as the orientation of mobility (LOM). It replaces the bicycle allowance.

Its effective date, originally set for July 1, 2020, has been brought forward to May 11, 2020 in an attempt to curb the increase in car traffic after the end of confinement linked to the coronavirus epidemic.

The amount of the sustainable mobility allowance is set at 400 euros per year per employee. It can be combined with the reimbursement by the employer of a public transport subscription, but the total amount cannot exceed 400 euros.

The sustainable mobility allowance is exempt from taxes and social charges and offsets the travel costs of employees who commute to work by bicycle, shared vehicle (carpooling) or even using an electric, hybrid or hydrogen vehicle. In the case of a personal bicycle, the cost of purchase, rental, repair or accessories will be eligible for this sustainable mobility allowance.

“This individual financial encouragement can be decisive when we develop bicycle paths or lanes reserved for carpooling”, explained in a press release Elisabeth Borne, French Minister for the ecological transition. “In this period of deconfinement, and in order to limit road congestion, we strongly encourage the French to use bicycles, personal transport equipment and carpooling to move around,” added Secretary of State for Transport, Jean- Baptist Djebbari.

The sustainable mobility allowance is not compulsory: it is implemented on a voluntary basis.

Photo credit: Shutterstock, 2020

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