Grants and Supports
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 battery electric vehicles (BEV) for business and public entities. There are 2 grants available for N1 category vehicles depending on their size. Small to medium vans are classified as N1S for the purpose of the grant. N1S are typically small goods carrying vans with a technically permissible maximum mass not exceeding 3500kg. Large panel vans, classified as N1L for the purpose of the grant must have technically permissible maximum laden mass of exactly 3500kg.
A maximum grant of €3,800 is available for qualifying BEV N1S and €7,600 for an N1L 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 in the M1 (passenger vehicle) category.
Direct CO2 emission values are used to calculate the Vehicle Registration Tax (VRT) and annual Motor Tax bands for vehicles.
- Motor Tax in January 2022 for a BEV is €120 per annum. BEVs have no tail pipe emissions of CO2.
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. The VRT relief will depend on the full cost of the vehicle. Full details on VRT are on the Revenue website.
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
This scheme, run by TII, is now closed to new applications and will close at the end of December 2023. Visit the eToll site for full details.