Last month, the Irish EV Association formally made its Pre-Budget 2026 submission to the Irish government. We provided a range of proposals designed to accelerate the adoption of zero and low emission vehicles across the country, and includes a number of fiscal incentives, infrastructure supports, and other targeted measures - applicable to business and / or individuals.

We present below a concise version of our proposals. You can read our full submission here, which provides more background and detail to these.

Vehicle Registration Tax (VRT)

• Amend Category A VRT tax bands and / or percentage rates applicable to favour zero and low emissions vehicles;
• Extend current VRT Relief to 31 December 2029, and;
• Any change introducing vehicle weight as an element of VRT should be based on, and give consideration to, the vehicle's underlying fuel source.

Capital Allowances

• Amend Emissions-based Limits on Capital Allowances and Expenses for Certain Road Vehicles to:
  • Lower full benefit emissions band to vehicles below a 100gCO2/km level under, and;
  • Increase the specified amount available.

Motor Tax

• Retain existing rates for zero and low emissions bands (aligned with above, below a 100gCO2/km level), and;
• Incremental increases in rates for other emissions bands, with larger increases in the higher emissions bands.

Battery Testing

• Provide additional funding to the Road Safety Authority to enable introduction of a battery testing component, to include assessment of state of health, to the National Car Test.

Benefit In Kind (BIK)

• Extend BIK relief for employer-provided electric vehicles to 31 December 2029.

Salary Sacrifice

• Extend salary sacrifice arrangements to include BEVs.

Purchase Grants

• Maintain SEAI Purchase Grant at current levels until the majority of new vehicle purchases are BEVs.
• Introduce a complementary Scrappage Scheme, targeting old, high mileage non-plugin petrol and diesel vehicles.

Charger Installation Support

• Restore SEAI Home Charger Grant to its prior level, €600.
• Reduce VAT rate applicable to supply and installation of electric vehicle charging stations.

Travel and Subsistence

• Change Civil Service Motor Rates applicable to BEVs to “Engine capacity 1501cc and over”.

Carbon Tax

• We do not propose any changes to, or deferrals from, the introduction of any previously announced increases to carbon taxes.

Car-share and Vehicle Hire

• Introduce a grant scheme, similar to the eSPSV Grant Scheme, targeting the car-share and vehicle hire sector.

Other Schemes and Grants

• Continue support for, and expansion of, infrastructure schemes and grants. In particular, we highlight the need for infrastructure development in rural and other underserved areas.
• Introduce complementary ‘Right-to-charge’ legislation.

Tax Deductibility of Diesel

• Review entitlement to a deduction of VAT input costs in respect of certain business related expenses incurred with diesel vehicles, with a view to an incremental winding down of entitlement as commercial BEV use increases. Petrol vehicles are already typically excluded from entitlement to such treatment.
  

Again, looking for more detail? Our full submission is available here.