The SPSV Taxi Grant for Electric Cars

The number of taxi drivers on Irish roads is still approximately 10% lower than before the pandemic. Once a backbone of the Irish economy, the industry has been severely impacted by rising energy costs and hesitations among some segments of society to return to nights out.

Fortunately, the Irish Department of Transport has renewed a taxi grant for electric cars. The grant scheme targets small public service vehicles (SPSVs) such as taxis, hackneys, and limousines, offering excellent incentives for Irish taxi drivers to reduce emissions and make the process of acquiring newer, slicker vehicles easier.

When the electric SPSV grant scheme was first introduced in 2018, its aim was to provide real incentives for taxi drivers, who spend most of their time behind the wheel, to consider electric cars as a viable alternative. In a recent statement in the Dáil Éireann, the Irish Transport Minister, Eamon Ryan, announced that the government would be allocating €15 million to further the taxi grant for electric cars in 2023. The government's renewal of this scheme means that it has never been easier for SPSV drivers to exchange their gas or diesel vehicles for electric cars.

Benefits of the SPSV Electric Vehicle Grant

Over the past four years, the grant scheme has helped more than 1,400 SPSV drivers purchase electric vehicles. Eligible drivers stand to receive up to €10,000 towards the purchase of an electric vehicle. If the new vehicle is wheelchair-accessible, applicants stand to receive an additional €2,500.

SPSV drivers who trade in their existing non-electric car will be eligible for double the compensation. €20,000 has been made available to those who trade in a vehicle that runs on fossil fuels. If the new car is a wheelchair-accessible model, drivers can earn up to €25,000.

While the SPSV grant is currently one of the most lucrative sustainable grants in Ireland, the incentives do not stop there. SPSV drivers can also avail themselves of a €1,000 annual toll rebate, as well as the SEAI's electric vehicle home charger grant, which provides up to €600 towards installation. We would recommend assessing the Zappi Electic Vehicle Charger for your home charging needs. 

VRT Rebate

While the toll rebate and the SEAI home charger grant serve to sweeten the pot, the best collateral incentive for SPSV drivers to consider the scheme is the Vehicle Registration Tax (VRT) rebate. In Ireland, VRT is typically a percentage of the open market sales price (OMSP) of the vehicle and is paid when a car is first registered. The government has announced that there is a VRT relief for electric car owners in place until the end of 2023, and owners of plug-in hybrid electric vehicles can also benefit from the savings. Under the scheme, €5,000 will be allocated towards VRT relief for SPSV drivers.

Scrappage and Grant Policies

Getting rid of an existing vehicle can be a headache. However, the SPSV taxi grant for electric cars provides plenty of reasons for taxi drivers to trade in their emission-inducing, high-mileage vehicles.

To be eligible for the scrappage scheme, the applicant’s existing vehicle must have a mileage of at least 300,000 km and be within three years of its maximum permissible age. Moreover, the applicant must have been registered with the NTA as an SPSV driver in Ireland for at least three years prior to the application.

For non-wheelchair access vehicles, the maximum amount an SPSV driver in Ireland can receive towards
a new, battery-powered vehicle is €20,000. This maximum amount only applies if the vehicle in question
has a mileage of fewer than 3,000km, and must not be more than 3 months old. Grants available for older
vehicles decrease by €2,000 for every year that the car has been in use, to a minimum of €12,000 after
four or more prior years on the road.

Although those who trade in existing vehicles are eligible for more money, you do not need to trade in your old vehicle to reap financial benefits. For vehicles not covered under the scrappage scheme, the SPSV grant scheme offers €10,000 for a new model, with potential grant money decreasing by €1,000 for every year of use to a minimum grant of €6,000 for a model less than four years old.

Hybrid vehicles use a combination of electric power and fossil fuels. Applicants wishing to purchase a plug-in hybrid model are eligible for grants ranging from €15,000 for a new model to €7,000 if the model is less than four years old.

Additionally, SPSV drivers in Ireland should be aware that using a limited company will likely yield more affordable options for electric cars and plug-in hybrids. In addition to lower market prices, tax incentives like waiving a benefit-in-kind (BIK) tax charge on all electric models purchased for less than €50,000.

How to apply for the SPSV Grant Scheme

The SPSV grant scheme provides an excellent opportunity for SPSV drivers to switch to electric models, and there has never been a better time to do so. To apply for the scheme, simply visit the National Transport Authority website and submit your application. You will need to provide information about your vehicle, your SPSV credentials, and any relevant information about your company.

If you are considering taking advantage of this incredible scheme, do not hesitate to contact WattCharger for all your home charging needs. We serve customers from all over Ireland from Dublin to Cork to Galway and everywhere in between. We can provide you with all the information and resources you need to make the switch to an electric vehicle as smooth and hassle-free as possible.