Tax Incentives for Companies installing EV Chargers

Updated: Jun 12

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.

Tax Incentives for Companies installing EV Chargers

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