With electric vehicles becoming increasingly popular month on month, it’s important to know the range of grants and supports available before you think of buying. We take you through the key incentives on offer.

Electric Vehicle Grants

How much are the grants worth?

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?

Wondering if you meet the criteria for the maximum grant? Firstly, your vehicle should fall into the M1 passenger car category, be fully electric, and carry a price tag ranging from €14,000 to €60,000. This price covers optional extras, paint, and delivery charges but excludes any grants or rebates. If your chosen car exceeds €60,000, no grant is applicable.

The following is a breakdown of the full grant structure.

Home Charging Grants

How much can I get for a home charging grant?

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.

What about VRT on my electric vehicle?

It’s not just government grants driving incentives for EV buyers; Vehicle Registration Tax (VRT) also comes into play. Although VRT for high CO2-emitting vehicles is steep (good news – no increases as per the 2024 Budget), drivers opting for reasonably priced electric cars can enjoy VRT exemptions. Initially slated to finish up by the end of December 2023, the government has decided to extend the VRT relief program until the close of 2025.

Is VRT subject to all electric cars?

Electric vehicles priced under €40,000 will maintain their exemption from VRT, and those purchasing vehicles within the €40,000 to €50,000 range will receive some relief. However, for cars surpassing the €50,000 mark, there won’t be a reduction in VRT. Nevertheless, given that VRT rates are emission-based, EV drivers will still incur lower VRT compared to drivers of conventionally powered cars.

How much is the road tax on an electric vehicle?

Due to motor tax being determined by the vehicle’s emissions level, electric vehicles fall into the lowest tax band, with a cost of just €120 per year for a Battery Electric Vehicle.

Company Vehicle Benefit-in-Kind Rules

Do I have to pay BIK on electric vehicles?

The government has also extended the Benefit-in-Kind (BIK) tax incentives for electric vehicle drivers. Since BIK tax is primarily determined by the car’s Original Market Value (OMV), the relief operates by subtracting from that value. Consequently, the €10,000 deduction implemented last year will carry on throughout 2024, while an additional deduction of €35,000 will be applied to cars made available between 2023 and 2025.

In summary, drivers of any vehicle with an OMV below €45,000 will be exempt from BIK tax for vehicles made available in 2023 and 2024. For vehicles with a higher OMV, BIK tax will only be applicable to the value exceeding €45,000.

However, this amount is set to decrease between 2025 and 2027. In 2025, only the €35,000 OMV deduction will be applicable, reducing to €20,000 in 2026. By 2027, it will decrease again to €10,000. Nevertheless, given that tax rates are determined in part by emissions data, EVs will still attract lower BIK compared to similarly priced combustion-powered vehicles.

Toll Discount

Are electric vehicles still eligible for toll discounts?

The Low Emission Vehicle Toll Incentive (LEVTI) was established to promote the usage of low and zero-emission vehicles by granting toll discounts on routes like the Dublin Tunnel and the M50. Initially, private battery-electric vehicle drivers enjoyed discounts of up to 75% on the M50 toll and 50% savings in the Dublin Tunnel. 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.