3 May 19

Italian EV and hybrid incentives: up to €6,000, also for leased company cars

Two weeks ago the Italian government ratified an ecobonus programme that applies to electric or very low-emission hybrid vehicles with a list price of up to €50,000 excluding VAT (or €61,000 including 22% VAT). For 2019, €60 million has been set aside, an amount that will increase to €70 million in 2020 and 2021.

Both private consumers and companies can apply for a subvention of up to €4,000 towards the purchase of leasing of a new electrified vehicle in the M1 category (passenger cars for up to 8 people) with a CO2 emission rating of up to 70 g/km. Interestingly, the latter is based on the NEDC until 31 December 2020 and WLTP afterwards.

There are two categories: vehicles with a CO2 rating of up to 20 g/km (basically only BEVs) and vehicles that emit between 21 and 70 g/km (plug-in hybrids and some smaller regular hybrids). The first category is eligible for a €4,000 bonus, the second for €1,500 in financial support.

These bonuses can increase to €6,000 and €2,500, respectively, if you scrap an older vehicle that complies with the Euro 1, 2, 3 or 4 emission standards. These amounts are to be deducted from the sales price by the dealer, who receives the subvention from the importer, which in turn gets the money from the Italian State in the shape of a tax credit.

Tax incentives for charging stations

In addition to the "'Ecobonus' on the purchase, a new tax deduction of 50% is also applicable on a total amount of  maximum €3,000, spread out into ten equal annual installments, for the purchase and installation cost of recharging points for electric vehicles. Here too, the application period runs from March 1, 2019 to December 31, 2021.

Both private individuals and companies can apply, as well as condominiums.

Which vehicles are eligible for the bonus?

For a complete list (May 2019) click here.



Authored by: Dieter Quartier