Joe O'Brien
Question:237. Deputy Joe O'Brien asked the Minister for Transport if the rebate that previously existed for companies switching to electric vehicles will be restored; and if he will make a statement on the matter. [36839/20]
View answerTuesday, 17 November 2020
Questions (237)
Written answers
In responding I am assuming that the Deputy’s question is referring to the SEAI Commercial Electric Vehicle (EV) Purchase Grant Scheme that provided support towards the purchase of a new M1 class EV. This grant provided up to €3,800 towards the purchase of a new passenger EV for businesses and public entities. Provision of the grant for M1 vehicles ceased in October 2019; however, grant support is still available for new N1 (vans and light trucks) commercial EVs.
In Budget 2019, the Minister for Finance announced that fully electric commercial vehicles would be eligible for a 0% Benefit-in-Kind rate, up to €50,000, without mileage conditions until the end of 2022. This announcement represented a significant financial incentive to many operating business vehicles. The Accelerated Capital Allowance Scheme also represents a substantial financial benefit to businesses, allowing the cost of commercial EVs and their related infrastructure to be written down in the year of purchase instead of over the traditional eight years. In addition, commercial EVs can avail of toll reductions up to a maximum of €1,000 per annum, as well as lower annual motor tax.
The Minister recently approved the introduction of a grant for electric vehicle (EV) demonstration cars in recognition of the important role that such cars play in familiarising consumers with EVs. An EV Purchase Grant of €3,800 is provided in respect of Category M1 demonstration cars registered by EV dealerships approved by the SEAI. The SEAI have notified EV dealerships of the terms and conditions of the grant and the means by which dealerships may apply for and receive the grant.
An EV Spending Review published by the Department of Public Expenditure and Reform, found that Irelands current range of EV financial incentives are among the most generous in the world. As the Deputy is aware, care must be taken to ensure that a balance is struck between improving EV sales and not placing unsustainable costs on the Exchequer. Priority must remain on the most cost-effective measures that aid in Ireland's transition to a low carbon economy. Under the existing incentive regime we have seen the highest ever EVs sales in the last two months, despite the challenging times we are facing with COVID-19.
I am committed, in my role as Minister for the Environment, Climate and Communications and Minister for Transport to continue to review the EV support schemes on an on-going basis as it is critical that we set Ireland on course to achieving the EV targets outlined in the Climate Action Plan. To this end, an Electric Vehicle Policy Pathway Working Group was established to consider the optimum mix of regulatory, taxation and subsidy policies available to Government to significantly accelerate EV sales. I am given to understand that the Working Group gave consideration to the role of the commercial sector in helping to hasten this transition. I plan to publish the Recommendations of the Working Group when I have received and considered them.