Zero Emission Vehicles Ireland has a target under the Climate Action Plan 2023 to have 30% of our private car fleet switched to electric by 2030
VRT Relief
This was due to expire at the end of 2025, but has been extended to the end of 2026. This means EVs with a value of €40,000 will continue to pay no VRT, while the tapering relief between €40,000 and €50,000 also remains in place.
SEAI Electric Vehicle grant
A maximum grant of €3,500 is available for qualifying new M1 (passenger car) battery electric vehicles (BEVs) when purchased privately. Approved EVs with a full price of more than €60,000 and less than €14,000 will not receive a grant. The grant amount will depend on the list price of the vehicle. This is the full non-discounted price in the absence of VRT relief or grant support.
Commercially bought EVs - Light Commercial Vehicles
SEAI provides grant supports towards the purchase of new N1 (light commercial vehicle) category electric vehicles for business and public entities. N1 category vehicles are typically small goods carrying vans with a technically permissible maximum mass not exceeding 3500kg. For the purpose of the grant SEAI will classify these as N1S vehicles. A maximum grant of €3,800 is available for qualifying N1S category BEVs when purchased commercially.
Large Panel Vans
Applications can now be made for large panel van which SEAI will classify as N1L. The grant amount for these vehicles is €7,600. The grant will be for new large panel vans (BEV only) with a technically permissible maximum mass of exactly 3500kg (N1 category vehicle). Large Panel Vans with a price, excluding all grants, rebates, incentives and inclusive of all optional extras, delivery charges, metallic paints etc. of €90,000 or less will be eligible for this grant.
EV Home Charger grant
A grant from SEAI to support the installation of a home charger. Claim up to €300 towards the purchase and installation of an electric vehicle home charger unit. You don't have to own an EV go install a home charger. Funding for the EV Home Charger scheme is provided by Zero Emission Vehicles Ireland (ZEVI) based in the Department of Transport. SEAI operates this grant scheme on behalf of ZEVI. (Previously, the grant was €600).
The apartment charger grant assists residents and owners of apartments and other multi-unit developments who want to install a home charger for their Electric Vehicle (EV) and which are not covered by the pre-existing grants. The grant is designed for bulk installation of chargers at a single location, and supports cabling, infrastructure, labour, and construction costs. Owners’ management companies, housing bodies, local authorities, commercial and private landlords can apply.
0% Benefit-in-Kind (BIK)
Certain Benefit-in-Kind (BIK) exemptions and discounts are available where the car made available to your employee is an electric car. Electric cars are cars that get their motive power from electricity only. Hybrid cars do not qualify as electric cars. The treatment applies to both new and used cars.
You may choose to make an electric car available to your employee for private use in the future. Partial relief will apply in respect of electric cars made available between 1 January 2023 and 31 December 2027. This relief applies by reducing the Original Market Value (OMV) of the vehicle. The reduction which applies is as follows:
€45,000 in respect of cars made available during 2025 (includes additional €10,000)
€20,000 in respect of cars made available during 2026
and
€10,000 in respect of cars made available during 2027.
Where the relief reduces the OMV to nil, a BIK charge will not arise. Any OMV in excess of the reduction is liable to BIK in the usual manner. For 2026, an additional reduction of €10,000 can be applied to the OMV. It will remain at a €10,000 off the value of an electric vehicle for BIK calculations up to the end of 2026, before it reduces to €5,000 in 2027, €2,500 in 2028, and it will be removed entirely in 2029There will be futher reductions in the next 2 years. See revenue for full details.
Announced for Budget 2026 was the creation of a new, lowest BIK rate for zero-emissions vehicles — currently the lowest BIK band runs from 0g/km of CO2 up to 59g/km, and therefore also includes many petrol-engined plug-in hybrid models.
This new A1 BIK band will have rates of six per cent to 15 per cent, depending on the mileage accrued, while the lower mileage limit for business users in the highest mileage band is being permanently reduced from 52,001km to 48,001km, starting from January 1st. That means that more long-haul business drivers will be drawn into the lowest possible BIK rate if they're driving an EV.
ACA - Accelerated Capital Allowance
The Accelerated Capital Allowance (ACA) is a tax incentive scheme that promotes investment in energy efficient products and equipment. The ACA is based on the long-standing 'Wear and Tear Allowance' for investment in capital plant and machinery, whereby capital depreciation can be compensated through a reduction in an organisation's tax liability. For cars coming under the category "Electric and Alternative Fuel Vehicles" the accelerated allowance is based on the lower of the actual cost of the vehicle or €24,000. ACA scheme.
Motor Tax
Lowest rate of motor tax at €120 for BEVs.
Vehicle to Grid
If you have an electric car with the ability to transmit power back to the national grid at times of peak demand — so called V2G, or Vehicle to Grid technology — then you'll pay no income tax on the first €400 worth of energy that you sell back to your supplier.
VAT Relief on Electricity
Electricity supply is subject to 9% VAT up to the end of 2030 which can be reclaimed by the company.
Grants for taxis, hackneys, and limousines (SPSV)
If you drive a small public service vehicle (SPSV), you may get a grant from the National Transport Authority (NTA). Grants of up to €20,000 or €25,000 for wheelchair accessible EV’s are available. The amount of the grant you get depends on the car’s age, specifications, and mileage. You can find out more information on the National Transport Authority website.