There are a number of tax incentives in place to encourage the adoption of electric vehicles which are an environmentally cleaner mode of transport. A relief from Vehicle Registration Tax is provided up to a maximum €5,000 and the annual rate of motor tax is the lowest rate chargeable at €120. Further to this electric vehicles qualify for the Accelerated Capital Allowance (ACA) Scheme which is a tax incentive for companies paying corporation tax with the aim of encouraging investment in energy efficient equipment. The ACA Scheme allows for the write off of 100% of the purchase price of energy efficient equipment, including electric vehicles, in the year of purchase as opposed to the normal 8 year capital write-down.
It is the long-standing practice of Ministers for Finance not to comment on what may be contained in upcoming budgets.