All stats are accurate after the 2020 Budget.
It is well known by now that there are Government grants being awarded for the purchase of private electric and hybrid vehicles. However, as we move into the electric-age of motoring, many other grants and incentives have also been introduced that you may not be aware of. There is no question that EV and hybrid vehicles are increasing in popularity. In 2019 electric and hybrid car sales were up 157% on the previous year, and there is no doubt that this will have also increased in 2020 with many more manufacturers offering eco-friendly vehicle options. Whether you are considering purchasing an EV for yourself in 2021, or you are a business looking to invest in EV charging points, it is important to be aware of the following Government grants and incentives.
Electric Vehicle Grant Scheme
The Electric Vehicle Grant Scheme in Ireland offers grants for both private and commercial EVs. A list of the eligible vehicles can be viewed here, and include both plugin hybrid and battery electric cars. A maximum grant of €5,000 is available for eligible EVs when purchased privately and a maximum of €3,800 is awarded for commercial vehicles. It should be noted that EVs with a price list of less than €14,000 do not qualify for the grant. Second hand vehicles are also not eligible to receive the grant.
As well as this grant scheme, a rebate of up to €2,500 on vehicle registration tax can be claimed for plug-in hybrid cars, while VRT of up to €5,000 can be paid back on fully electric cars. This VRT relief for hybrid cars was extended until the end of 2020 in the most recent Budget. The 2020 Budget also saw €8 million being allocated to the Department of Communications, Climate Action and Environment to maintain the grants for the purchase of EVs in Ireland. The Government has also massively disincentivised the purchase of new petrol and diesel vehicles in an effort to reduce our CO2 emissions. This, along with the grant, will only increase the popularity of eco-friendly vehicles.
Accelerated Capital Allowance Tax Incentive (ACA)
It is not just private EV owners who can avail of Government grants and incentives. The Accelerated Capital Allowance Tax Incentive (ACA) promotes the investment in energy saving products and equipment. Businesses can avail of the ACA tax incentive if they are in possession of any qualifying energy efficient equipment, such as EV chargers. The ACA allows businesses to deduct the full cost of this equipment from their profits in the year of purchase. This means that the reduction in tax paid by the company for that year is currently 12.5% of the value of capital expenditure. With an increase in electric and hybrid vehicle sales, now is a great time for businesses to avail of this tax incentive and invest in EV charging points.
Electric Vehicle Home Charger Grant
A question that drivers looking to invest in a new electric car often ask themselves is where are they going to charge their car. For this reason, the Government offers an additional grant for EV home chargers. Unlike the EV grant, however, the home charger grant is also available to second hand cars. The grant is available to any private owner who has bought an eligible EV from 1st January 2018. The property in question cannot be associated with a previous EV grant, for example the free ESB Ecars home charger grant pre 2018. The financial aid is available for 100% of total installation costs up to a maximum amount of €600. This value includes the cost of the charger and the installation.
Electric Vehicle Public Charge Point Grant
The EV home charger grant is a great incentive, but only applies to those who are able to install a charger on their own property. This rules out people living in apartments without car parking facilities or any residence with a commonly shared car parking space. For this reason among others, the Government has introduced the Electric Vehicle Public Charge Point Grant. This grant is available to local authorities and county councils to install charge points on public streets or car parks that provide overnight parking for local residents. The grant will cover a total of 75% of the cost of installing a charge post, with a cap of €5,000 per single charge point. This grant seeks to support the Climate Action Plan commitment of seeing 936,000 electric vehicles on Irish roads by 2030 and will support the widespread adoption of EVs throughout the country.
The most recent Government budget has also allocated €10.5 million for further investment in greenways, urban cycling and the EV charging infrastructure. This allocation of funds intends to double the number of Local Authority on-street charge points installed in 2020, support the installation of charging points at apartment complexes and install fast charging points to taxi ranks around the country.
EV Charging Stations with TSG Charge
With ever-growing popularity for electric vehicles along with the introduction of a variety of grants and incentives, the demand for EV charging infrastructure in Ireland is increasing. At TSG, we are the experts in consultation, installation, maintenance and support services for EV chargers, and are happy to talk to you about finding the best charging solution for your business. Contact us on 01 461 9800 to get in touch with one of our team today.