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Accelerated Capital Allowances with Electric Vehicles - Know Your Eligibility to EV Tax Incentives

You don't have to be an accountant to make sense of the savings you and your business can make!

  • Available on New 100% Electric Vehicles purchased by Ltd Company’s & Sole Traders
  • Eligible candidates can claim lower of purchase price or €24,000 against trading profits in year of purchase
  • Full Cap Allowance Tax saving accomplished in Year 1 of ownership
  • Conventional company vehicle takes 8 years to realise this saving
  • Half-Price Tolls
  • Cash saving on tax liability increased cash flow
  • Sole Traders eligible for €24,000 deduction against trade profits taxed at their effective rates
  • Charge stations also eligible for ACA, typical cost €1,500

To learn more about the BIK savings for both employees and employers, see our in-depth article here.

ACA Tax Saving Examples

ACA - Ltd Company EV Benefits Explained

The following example compares a Ltd company purchasing a Electric Vehicle and a conventional fossil fuel vehicle of similar size, both with a R.R.P of €28,000

Ltd CompanyElectric Vehicle Fossil Fuel Vehicle
Trading Profits€100,000 €100,000
Proportion of Deductible Vehicle Costs8/8 (100%) 1/8 (12.5%)
Deductible Vehicle Costs€24,000 €3,500
Deductible Charge Point€1,500 NA
Taxable Profits€74,500 €96,500
Tax Payable @ 12.5%€9,312 €12,063
Tax Saved€3,187€438

Over 7 times the tax saving compared to a fossil fuel vehicle in Year ONE!

ACA - Sole Trader EV Benefits Explained

The following examples compare a Sole Trader purchasing an Electric Vehicle and a conventional Fossil Fuel vehicle both with a R.R.P of €28,000. Sole Traders tax rate is 52%. (2019 tax rates and bands are assumed)

Sole TraderElectric VehicleFossil Fuel VehicleTax Saving
Trading Profits
€100,000 €100,000
Deductible Vehicle Costs€24,000 €3,000
Taxable Profits€76,000 €97,000



PAYE Payable€20,340 €28,740 €8,400
PRSI€3,040 €3,880 €840
USC€2,951 €4,631 €1,680
Total Tax Payable€26,331€37,251€10,920


Sole TraderElectric VehicleFossil Fuel VehicleTax Saving
Trading Profits
€50,000 €50,000
Deductible Vehicle Costs€24,000 €3,000
Taxable Profits€26,000 €47,000



PAYE Payable€2,200 €8,740 €6,540
PRSI€1,040 €1,880 €840
USC€493 €1,438 €945
Total Tax Payable€3,733€12,058€8,325


Who's Not Eligible?

  • Motor distributors
  • Motor Dealers
  • Car Hire Company’s
  • Vehicles are classed as stock in trade & not eligible for ACA
  • EV’s must be owned by the business
  • Lease & Hire arrangements do NOT count as ownership

(Please note - all figures above are estimates and not guaranteed. Please consult in full with a member of our sales team if you would like a more detailed breakdown)

Electric Vehicle Grants

Find out the value of grant available for your electric vehicle, how to apply and what vehicles are eligible.

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Home Charger Grant

When you purchase an electric car, you can claim up to €600 towards a home charger unit.

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Electric Vehicles Explained

Thinking about making the switch to electric? Here is what you need to know.

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