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Electric Company Cars Tax Incentive Eligibility

Wednesday, 13th February, 2019

There are a number of tax incentives available for the purchase of electric company cars introduced by the government to drive motorists towards cleaner and greener motoring.

In order to qualify for such tax reliefs, there are a number of conditions you will need to meet.

The main conditions are as follows:

The original market value of the car must be under €50,000 in order to qualify for no BIK.
The car is powered only by an electric motor.
The car must be new to benefit from the 100% claim for capital allowances in year 1.
The car must be in the SEAI register of electric cars to claim 100% capital allowances in year 1. Click here to search for cars registered with the SEAI.
The accelerated 100% allowance is based on the lower of the actual cost of the vehicle or the specified amount of €24,000 (maximum you can claim is €24,000).
The allowance can be claimed for the accounting period in which the equipment was first provided and used for the trade (the year you bought the car, which could be 2018).

If the vehicle is in excess of €50,000, BIK is only paid on the excess over €50,000 and not on the original market value. VRT relief also applies as follows:

Electric vehicles and motorcycles
Series production passenger cars or commercial vehicles (VRT categories A and B) that are:

powered only by an electric motor
and
registered before 31 December 2021
are eligible for relief from VRT up to a maximum amount of €5,000.

Series production electric motorcycles are exempt from VRT until 31 December 2021.

Grants for electric company cars

There are also a number of grants available to business owners for purchasing electric company cars and the installation of chargers at the home. Click here for further information.

For more information about the tax incentives available for electric company vehicles and the tax treatment for employers and employees, here are links to two helpful sections on Revenue’s website:

Private Use of Company Cars >
Accelerated Capital Allowances for Energy Efficient Equipment >

Alternatively, please contact your DBASS advisor or ask to speak to Sean O’Reilly on 01 849 8800.

Dublin Office Suite 14, The Cubes Office, Beacon South Quarter, Sandyford, Dublin 18.
Meath Office Berkeley House,
Ballybin Road, Ashbourne,
Co. Meath.

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