Switching to an electric vehicle (EV) for your business can significantly reduce your tax liabilities while supporting Ireland’s sustainability goals.
Electric vehicles are more than just an environmentally conscious choice. They’re also a smart financial decision for Irish businesses. With enhanced government incentives, reduced Benefit-In-Kind (BIK) taxes, and tax relief on home EV charger installations, the benefits of going electric have never been greater.
If you're considering a new company vehicle, here's why you should seriously consider choosing an EV.
The Financial and Environmental Benefits of EVs in Ireland
Ireland’s government is actively supporting EV adoption through updated tax policies and green initiatives. The 2024 Finance Act introduced new measures that make owning and operating an EV more financially advantageous than ever, especially for employers and business owners.
1. Vehicle-Related Tax Incentives
- Benefit-In-Kind (BIK) Relief:
Employees provided with an EV by their employer may qualify for reduced or zero BIK tax, with exemptions for vehicles up to a specific value threshold. This relief continues under the Finance Act 2024, supporting business sustainability and employee retention. - Accelerated Capital Allowance:
Businesses can claim 100% tax relief in the first year on the cost of electric vehicles and charging infrastructure, reducing upfront investment impact. - VAT Reclaim:
VAT-registered companies can reclaim 20% of VAT on the purchase of electric passenger cars used for business purposes. - VRT Relief:
Importing an EV into Ireland? You may qualify for Vehicle Registration Tax (VRT) relief, especially for vehicles under €40,000, where VRT can be reduced to zero.
Learn more about our EV charger installations
2. New Home EV Charger Provisions (2024 Updates)
- Accelerated Capital Allowance:
Employers who provide and install EV chargers at employees’ homes can now claim accelerated capital allowances, reducing the cost burden of remote charging solutions. - BIK Exemption for Home Chargers:
Under the Finance Act 2024, home chargers supplied by an employer are exempt from BIK, provided they’re used exclusively with the company vehicle.
This provision is especially helpful for remote or hybrid workers, and it removes yet another barrier to EV adoption for businesses.
3. Lower Running Costs for EVs
- Reduced Motor Tax:
Thanks to zero-emissions status, EVs attract much lower annual motor tax. Typically around €120, compared to €200–600 for traditional vehicles. - No Fuel Excise:
Unlike petrol or diesel, electricity for EVs isn’t subject to fuel excise duties, leading to ongoing operational savings.
4. Government Grants and Subsidies
- SEAI EV Grants:
The Sustainable Energy Authority of Ireland (SEAI) offers generous grants for both new EV purchases and the installation of home charging systems. - Expanded Charger Grants:
Leased or company-owned vehicles are now also eligible for home charger installation grants, broadening access for businesses and employees alike.
Read more about available SEAI grants in our updated 2025 guide
5. Accelerated Wear and Tear Deductions
Electric vehicles qualify for accelerated wear-and-tear allowances, letting businesses deduct the full cost of qualifying assets in the first year of use, helping reduce overall taxable income.
6. Green Image & ESG Alignment
Moving to EVs supports broader Environmental, Social, and Governance (ESG) goals. Something investors, customers, and stakeholders are increasingly prioritising.
For businesses in Ireland, this isn't just a branding advantage. It's a strategic move toward future-proofing your operations.
Conclusion: Why Wait?
With the 2024 Finance Act expanding tax breaks, grants, and employer incentives, now is the ideal time for Irish businesses to invest in electric vehicles.
- Switching to EVs can help you:
- Lower your tax bill
- Boost sustainability credentials
- Reduce operating costs
- Enhance employee satisfaction
Ready to Make the Switch? Get a free quote on EV charger installation
Let WattCharger help you electrify your fleet and future!
Blog Author: Rowan Egan