Business Grants for EV Charging Equipment
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.
In 2019, the Government invested around €20 million to put up 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 it is without doubt that there needs to be significantly more EV charging points around the country. To that end, aside from increasing the number of public charging points, the Government have made grant schemes available for businesses to encourage them to support and promote the adoption of EVs.
One of the schemes was a €3,800 grant support for companies buying electric cars or plug-in hybrids. Administered by the Sustainable Energy Authority of Ireland (SEAI), this incentive was on top of the €5,000 tax rebate on Vehicle Registration Tax (VRT) on full-electric vehicles.
Unfortunately, the €3,800 grant was discontinued last year; however, the €3,800 incentive for companies purchasing an electric van will continue. Similarly, the VRT rebate for EVs will be available until the end of 2021.
There is also a grant scheme available for companies planning to put up charging stations on their premises.
Business Grant for EV Charging - The Accelerated Capital Allowance (ACA)
The Accelerated Capital Allowance (ACA) is for businesses that invest in energy efficient products and equipment, including electric vehicles and associated EV charging equipment.
Also administered by the SEAI, this tax incentive is meant 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 settle.
The ACA is similar to the standard “wear and tear” allowance 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.
Business Grant for EV Charging – 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 you bought to 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) and accomplish 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.
As more people go for electric vehicles, having charging stations within business premises is essential not only for companies to support their employees but also to attract more customers. 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 grants 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!