With climate change at the forefront of everything we do, electric cars have come to play a central role in the Irish Government’s Climate Action Plan, in the decarbonisation of the transport sector, and in eliminating emissions from our private car fleet. The electrification of Ireland’s car fleet offers a logical, practical way to ensure zero tailpipe emissions, alongside a number of beneficial by-products such as improved air quality, reduced noise pollution, and less fossil fuel dependence. An electric car is one that derives its power exclusively from an electric motor. Hybrid cars are not electric cars.
It’s worth noting a notable change in Ireland’s EV incentives landscape is the decrease in the grant amount for buying a new electric vehicle. Previously, this grant was capped at a maximum of €5,000. However, since January 1, 2024, the maximum grant has been adjusted to €3,500 for eligible vehicles.
How do I know what vehicles are eligible for the grant?
A maximum grant of €3,500 is available for qualifying new M1 (passenger car) battery electric vehicles (BEVs) when purchased privately. If your chosen car exceeds €60,000, no grant is applicable.
The following is breakdown of the full grant structure for a privately purchased vehicle:
| Price of EV | Grant Amount |
|---|---|
| €14,000 – €14,999 | €1,500 |
| €15,000 – €15,999 | €2,000 |
| €16,000 – €16,999 | €2,500 |
| €17,000 – €17,999 | €3,000 |
| €18,000 – €60,000 | €3,500 |
| >€60,000 | Ineligible |
Commercially bought EVs: SEAI provides grant supports towards the purchase of new N1 (light commercial vehicle).
| List Price of Approved EV | BEV |
| €14,000 to €15,000 | €2,000 |
| €15,000 to €16,000 | €2,500 |
| €16,000 to €17,000 | €3,000 |
| €17,000 to €18,000 | €3,500 |
| €18,000 to €60,000 | €3,800 |
Charging Grants.
Previously, electric car owners looking to charge at home were eligible for a grant of up to €600, covering the expenses of purchasing and installing a home charging unit. However, the SEAI has recently adjusted this grant amount to €300.
VRT Relief.
Initially stated to finish up by the end of December 2023, the government has decided to extend the VRT relief program until the close of 2025.
Vehicles with an Open Market Selling Price (OMSP) of up to €40,000 will be granted relief of up to €5,000. Vehicles with an OMSP of greater than €40,000 but less than €50,000 will receive a reduced level of relief. Reliefs have been removed for any electric vehicles above €50,000.
Company Vehicle Benefit-in-Kind Guidelines.
From 1 January 2023, a new CO2-based Benefit-in-Kind (BIK) regime for employer-provided cars applies. The amount taxable as BIK is determined by the car’s Open Market Value (OMV), the annual business kilometres driven and the CO2 emissions-based bands. The number of mileage bands is reduced from five to four.
For 2023 and 2024, a reduction of €10,000 can be applied to the OMV of cars in categories A, B, C and D. The reduction is not applicable to cars in category E. The reduction of €10,000 to the OMV is in addition to the relief of €35,000 for electric vehicles for 2023 and 2024.
| Vehicle Category | CO2 Emissions (CO2 g/km) |
|---|---|
| A | 0g/km up to and including 59g/km |
| B | More than 59g/km up to and including 99g/km |
| C | More than 99g/km up to and including 139g/km |
| D | More than 139 g/km up to and including 179g/km |
| E | More than 179g/km |
For 2023 and 2024, the lower limit in the highest mileage band is reduced by 4,000 km to 48,001 km.
| Lower Limit | Upper Limit | A | B | C | D | E |
|---|---|---|---|---|---|---|
| Kilometres | Kilometres | % | % | % | % | % |
| – | 26,000 | 22.5 | 26.25 | 30 | 33.75 | 37.5 |
| 26,001 | 39,000 | 18 | 21 | 24 | 27 | 30 |
| 39,001 | 48,000 | 13.5 | 15.75 | 18 | 20.25 | 22.5 |
| 48,001 | – | 9 | 10.5 | 12 | 13.5 | 15 |
Are Toll Discounts still available?
Unfortunately, due to overwhelming demand, the scheme was prematurely halted on November 1, 2023. What this means for you is that all private vehicles are now required to pay the full toll amount.
Want to find out more?
For more information on how electric vehicle grants make it more affordable to switch to an EV, check out the Sustainable Energy Authority of Ireland (SEAI) website here.
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