Auto advice: Thinking of buying an electric car? Here are the government grants and tax breaks you can avail of

Published on 28 August, 2022

There are two types of government purchase supports available on electric cars: one in the form of vehicle registration tax (VRT) relief of up €5,000 and the other is a maximum grant of €5,000 from the Sustainable Energy Authority of Ireland (SEAI).

Overview

There are two types of government purchase supports available on electric cars: one in the form of vehicle registration tax (VRT) relief of up €5,000 and the other is a maximum grant of €5,000 from the Sustainable Energy Authority of Ireland (SEAI).

How much are electric car grants and supports?

Which cars are eligible for the grants?

Only cars with an open market selling price (OMSP) of up to €40,000 qualify for VRT relief of up to €5,000. Cars with an OMSP of greater than €40,000 but less than €50,000 receive a reduced amount. Reliefs have been removed for any electric vehicles above €50,000.

The SEAI grant is available for new battery electric vehicles (BEVs) with a full price of less than €60,000. The full price of the vehicle to the customer includes all optional extras, paint and delivery but excludes any incentives such as grants or rebates. Plug-in hybrid electric vehicles (PHEV) are no longer eligible for grants since January 1 this year.

Are electric cars exempt from benefit in kind (BIK)?

Battery electric vehicles qualify for a zero per cent benefit-in-kind rate up to €50,000 without mileage conditions. From 2023 until 2025 a tapering effect on the vehicle value will be introduced. For BIK purposes, the original market value of an electric vehicle will be reduced by €35,000 for 2023; €20,000 for 2024; and €10,000 for 2025.

Will I pay lower motor tax if I buy an electric car?

Electric cars qualify for the lowest available motor tax band. For a BEV, motor tax is charged at €120 a year and typically €170 annually for a PHEV.

Do toll roads offer any savings to EV drivers?

Electric-car drivers can avail of lower tolls. There is a 50pc toll discount for BEVs and a 25pc toll discount for PHEVs up to a maximum annual threshold of €500 for private vehicles and €1,000 for goods or commercial vehicles. On the M50 there is a 75pc discount during off-peak hours for BEVs and a 50pc discount for PHEVs.

Top tip: As part of a suite of measures announced by the Government to encourage people to make the switch to electric vehicles all households can now apply for an electric car home-charger grant of up to €600 whether they own an electric car or not.

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