Electric Motor vehicles tax relief example

Example below of tax savings for a sole trader in first year for buying a new approved electric vehicle versus a fossil fuel vehicle.

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

 

Electic vehicle versus Fossil Fuel Tax Savings
( assuming standard 2019 tax credits and bands)
		Electic		Fossil Fuel		Savings
Trading profits		50,000		50,000
Deductible vehicle costs		24,000		3,000
Taxable profits		26,000		47,000
Tax payable		2,200		8,740		-6,540
PRSI payable		1,040		1,880		-840
USC payable		493		1,438		-945
Total Tax Saving						-8,325