There are a number of financial supports available to help make the move to electric vehicles.
Financial supports for companies
The government has introduced initiatives to encourage the move to clean transport. The level of incentive varies between fully electric vehicles and plug in hybrid electric vehicles. These incentives will reduce as the cost of electric vehicles and internal combustion engine vehicles become equal.
Electric vehicle grants
SEAI provides grant supports towards the purchase of N1 category electric vehicles for business and public entities. N1 category vehicles are typically small goods carrying vans with a technically permissible maximum mass not exceeding 3500kg.
A maximum grant of €3,800 is available for qualifying BEV N1 category and €2,500 for qualifying PHEV N1 category when purchased commercially. Approved EVs with a list price of less than €14,000 will not receive a grant. It should be noted that these grants apply to new vehicles only and cannot be claimed on second hand vehicles.
SEAI also supports the purchase of privately owned electric vehicles of category M1 and N1. Further details can be found here
The table below shows the structure of grant support for N1 cateogry electric vehicles purchased commercially.
|List price of commercially purchased N1 electric vehicles||BEV||PHEV|
|€14,000 - €15,000||€2,000||€1,000|
|€15,000 - €16,000||€2,500||€1,250|
|€16,000 - €17,000||€3,000||€1,500|
|€17,000 - €18,000||€3,500||€2,000|
|Greater than €18,000||€3,800||€2,500|
Direct CO2 emission values are used to calculate the Vehicle Registration Tax (VRT) and annual Motor Tax bands for vehicles.
Vehicle registration tax
VRT is paid whenever a car is registered for the first time in Ireland. Electric Vehicles receive VRT relief separately to SEAI grant support. It is typically reflected in the vehicle price displayed by a dealer.
- VRT relief is up to €5,000 for Battery Electric Vehicles (BEV). This relief is in place until the end of 2021. VRT relief is applicable to BEVs with an OMSP up to €50,000. No VRT relief is available for vehicles with a value above this.
Accelerated Capital Allowance
The Accelerated Capital Allowance (ACA) is a tax incentive scheme that promotes investment in Triple E registered equipment. For cars coming under the category “Electric and Alternative Fuel Vehicles” the accelerated allowance is based on the lower of the actual cost of the vehicle or €24,000.
|Equipment category||Minimum expenditure for ACA||Technology|
|Electric and Alternative Fuel Vehicles||€1000||
Electric vehicles and associated charging infrastructure
Benefit in kind (BiK)
Where companies provide company vehicles to their staff and directors, Benefit in Kind (BiK) tax is applicable. This is a significant tax payable by the staff member or director on what might otherwise be a perk of the persons reward package.
BEV’s currently qualify for a 0% BiK rate on the first €50,000 of the vehicle value without any mileage conditions. PHEV vehicles do not qualify for this relief as they can still consume fossil fuels.
Toll incentive scheme
The Electric Vehicle Toll Incentive Scheme offers refunds depending on the:
- Toll collection location
- Toll transaction time and day
- Eligible vehicle type (i.e. BEV or PHEV)
- Class (i.e. private or goods vehicle)
The scheme refunds are capped at €500 per calendar year for private vehicles and €1,000 per calendar year for goods vehicles. Get full information on the Electric Vehicle Toll Incentive Scheme.