EV Guides | SEAI Accelerated Capital Allowance in Ireland

SEAI Accelerated Capital Allowance in Ireland

Now is a fantastic time start using electric vehicles! Business owners can turn to the SEAI Accelerated Capital Allowance in Ireland as an ideal initiative to help with your EV charging needs.

But what is the grant and how do you get it? Well, we’re here to help you with all the answers in this guide. Let’s get started!

An electric charger station attached to an EV

What is the SEAI Accelerated Capital Allowance in Ireland?

The Accelerated Capital Allowance (ACA) is a government grant. It helps businesses like yours afford EVs (electric vehicles) and charge points for commercial purposes.

Zero Emission Vehicles Ireland has set up Climate Action Plan 2021 with the goal of having 945,000 EVs in IOI by 2030. And SEAI’s (Sustainable Energy Authority of Ireland) grant makes everything more affordable.

If you switch to an electric vehicle, you’ll enjoy a 74% drop in your fleet costs. That’s compared to a new diesel engine car. EVs are:

  • Cheap to run (€120 is the lowest rate of motor tax).
  • Cheap to maintain.
  • Environmentally friendly.
  • Ideal for businesses wanting to future-proof a fleet.

This grant is designed to take the edge off buying EVs and installing charge points. And that lets you take advantage of what EVs hold for the future. Your employees will use them more, they’re great for fleets.

And with EV charging points, you can install them around your premises for customers, clients and employees to use. It’s a great way to show you’re a forward-thinking business.

The types of Accelerated Capital Allowance schemes

The ACA is a fantastic incentive as it’s a valuable saver off your annual budget. And there’s only the one scheme you need to know about.

ACA and Triple E

The ACA initiative is based on the Wear and Tear Allowance for business investment for machinery. Capital can depreciate over time, but businesses can receive compensation.

And that’s with your business’ tax requirements.

With the ACA scheme, if you’re a business owner, sole trader or farmer then you can deduct your purchased EV equipment off your profits. And we mean the full cost of the equipment in the year you bought them!

That saves you a bunch of income tax you’d otherwise need to pay.

Just to note, for electric cars in Electric and Alternative Fuel Vehicles, then ACA is based on the lower cost of the vehicle. That or €24,000.

Business eligibility for Accelerated Capital Allowances

There are certain eligibility criteria you need to stick to. Businesses, sole traders and farmers can take advantage of the ACA scheme.

But there are eligibility criteria to stick to. Three points, in fact, and they go like this:

  • Equipment use: The equipment you buy has to be new and for use with your business. You can’t lease or hire it out.
  • Time period: You can claim ACA for the accounting period the equipment was provided. But make sure it is published on your accounting list as soon as possible.
  • Costs and minimum spend: ACA is for costs relating to the equipment you buy. Spending must equal, or excess, the minimum amounts of the relevant class technology.

You can refer to the Triple E page again for help with categories and criteria.

How to apply for Accelerated Capital Allowances on electric cars

It’s straightforward enough to get Accelerated Capital Allowance in Ireland for electric cars. To get started, you need to request an application form. You can send an email for one of those to: triplee@seai.ie. You can also call them on 01 808 2100.

But breaking down what you need to do, it’s this:

  1. Choose the type of electric vehicle equipment you need (an EV, charging point or both).
  2. Check whether what you’re getting is eligible with the ACA (you can check the Triple E product register to do that).
  3. Make your ACA claim with your business’ CT1 form (return of income).

Three steps! A bit of research is required, but it’ll bag your business long-term savings. We think it’s totally worth the time and effort.

Do remember, though, the ACA still has the same rules as the Plant and Machinery Wear and Tear Allowance. But the main difference with EVs is you don’t need to get approval for expenditure on energy-efficient equipment.

The benefits of getting electric vehicles in your fleet

With the SEIA Accelerated Capital Allowance in mind, what sort of benefits can your business expect if you buy this equipment?

Well, we’re here with the answers. This is the breakdown of the top reasons why you should apply for the workplace charging scheme grant.

Save money

As we’ve covered above, you can expect to save money in the long-term. EVs are expensive to buy, but maintaining and running them over long periods will save your business money.

They’re simply more affordable to run than diesel or petrol-guzzling alternatives.

We have a full guide to the eco-friendly business benefits of reducing your carbon footprint. Check it out if you’d like to know more!

It widens your recruitment pool

If you put your eco-friendly policy first, then you’re making some positive PR for your business. It looks good for customers, but also is appealing for professionals.

Especially younger ones, who take the environment very seriously. You want to attract top talent for your business, so this is one way to look the part.

EVs are only going to grow in popularity, so make the shift, get some charging points and you’ll look like a fantastic place to work.

EVs are affordable to run

Depending on the EV model you have, they’re usually cheaper to run than diesel or petrol vehicles.

The Tesla Model 3 costs £4.40 per 100 miles compared to £10.20 for the Vauxhall Corsa. Not a bad saving, right?

Future-proof your business

The reality is, we’re heading towards an EV world. Give it 10-20 years and petrol and diesel vehicles will be rare to see on the roads.

It’s good business practice to start making the shift now. Get EVs for your employees, set the example and benefit with great savings while you’re at it.

Save money with EV charge cards

You can also get your employees EV charge cards. These work like fuel cards, but you can use the EV version at charge points in your network across Ireland.

How can employees check how much energy they’re using? Charge cards are a great way for your employees to see exactly how much of an impact they’re having.

Many charge cards, just like regular fuel cards, can be used with an app so you can see what you’re using on your phone wherever you are.

EVs are the future!

The estimates for IOI show up to 40,000 EVs across the country right now, but there fewer than 2,000 charges. And that’s 800 in the Republic of Ireland.

There’s a lot of demand for EVs and charging spots, but not a whole lot of stations.

That means it’s time for businesses to take action. By taking steps now, you can offer a huge benefit to your employees, clients or customers by installing charge points in and around your business.

By taking the step, you’ll protect your business from last-minute fleet updates. And ensure you have a reliable set of vehicles built to last over the decade ahead.

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