Updated: Nov 26, 2022
Ireland has invested substantially in the electronic vehicle industry. This is one of the steps the Government has been taking to reduce the nation’s CO2 emissions.
The Government has recently invested around €20 million installing a network of high-powered charging points all over the country. This was done to allay people’s fears about not having a charging station nearby when their electric vehicle’s (EVs) battery runs low. Range anxiety has been identified as one of the reasons behind the apprehension of some motorists to buy EVs.
While this is a step in the right direction there still needs to be significantly more EV charging points installed around the country aided by available business tax incentives schemes to encourage them to install chargers at work & other public locations further supporting EV adoption.
Tax Incentives for EV Charging - 100% Accelerated Capital Allowances (ACA)
100% Accelerated Capital Allowances (ACA) are available for businesses that invest in Energy Efficient Products and equipment, including electric vehicles and associated EV charging equipment.
Accelerated Capital Allowances are an excellent tax incentive to encourage companies to purchase energy-saving technology. Adopting these kinds of products and equipment for their trade can help the Government meet its target to reduce carbon emissions.
Under the ACA, farmers, sole traders and businesses can deduct the full cost of their purchased equipment from their profits, thereby reducing the income tax they would need to pay which is very valuable especially towards the Financial Year End.
ACA are similar to the standard “wear and tear” allowances for plants and machinery. The main difference, however, is that the ACA allows the deduction of the full equipment cost from the taxable profits on the same year it was acquired. This makes ACA more attractive than the “wear and tear” capital allowance which lets companies deduct equipment costs evenly spread over an 8-year period.
EV Charging Tax Incentives – Is Your Business Qualified to Apply for the ACA?
To be eligible for the incentive, you should be a sole trader, farmer or a company that operates and pays corporation taxes in Ireland.
It is also necessary for the product or equipment being installed will satisfy the energy-efficiency criteria and be on the Triple E Product Register. It should be noted that the criteria and list are regularly updated. The ACA can be claimed for the accounting period when the equipment was purchased provided that it is on the published list within that accounting period.
Furthermore, your company must own the product or equipment. You won’t be entitled to the allowance if the equipment is hired, let or leased.
If you want to qualify for this benefit, ensure that your chosen EV charging installation company has chargers which are on the Triple E Product Register.
To claim the allowance, fill out your company’s return of income form (CT1) including the section for ACA. This can be found alongside the standard capital allowances entry fields.
Independent Tax advice should be obtained from a qualified accountant to ensure the Accelerated Capital Allowances are claimed correctly.
Staff and Customers are now buying more and more Plug in Electric Vehicles as they are conscious of the environment more now than ever with most purchasers & car manufacturers seeking out zero emission vehicles or a hybrid version as a stepping stone towards electric vehicles in the future There is no denying that now is the best time to install EV chargers for your company given the Government’s incentives. Remember, these incentives are not going to be offered forever.
Do you want to be eligible for business incentives for EV charging equipment? Choose a company like ePower that installs EV chargers which satisfy the Government’s energy-efficiency criteria.
Call us now on 1800 99 88 77 to learn more about our products and services!