EV Business Case - Incentives (Updated)

Something that has been asked frequently by our viewers is a list of incentives for plug-in car buying in the different markets, so here's a small report of incentives in a number of markets:


Belgium

Companies can deduct 120% for EVs, private buyers no longer haver incentives.  of a new electric vehicle. There is also a tax deduction up to 40% for investments in recharging stations, to a maximum of €250.

Brazil

Import duty on cars in Brazil is 35%, but plug-ins only pay 2.5%. In São Paulo city owners of electric drive cars with a purchase price up to R$150,000 (~ US$65,200) are entitled to a 50% reimbursement of the annual car ownership tax (IPVA) for five years up to a total of R$10,000.

Canada

In Ontario there is of a rebate between CA$5,000 (4 kWh battery) to CA$8,500 (17 kWh or more) (~US$5,050 to US$8,650), depending on battery size, for purchasing or leasing a new PEV. The province also introduced green-coloured licence plates for exclusive use of plug-ins, that allow PEV owners to travel in the province's carpool lanes until 2015 regardless of the number of passengers in the vehicle. Also, owners are eligible to use provincially-owned parking lots.

Quebec's government earmarked CA$50 million(US$52.3 million) for a rebate program, and the maximum rebate amount is slowly reduced every year until a maximum of CA$3,000 in 2015, but the rebates will continue until the fund runs out. There is also a ceiling for the maximum number of eligible vehicles: 10,000 for all-electric vehicles and plug-in hybrids, and 5,000 for conventional hybrids.

China

A September 2013 joint announcement by the National Development and Reform Commission and finance, science, and industry ministries confirmed that the central government will provide a maximum of US$9,800 toward the purchase of an all-electric passenger vehicle and up to US$81,600 for an electric bus. The subsidies are part of the government's efforts to address China's problematic air pollution.

Colombia

All-electric cars and other green vehicles are exempted from import duties.

Costa Rica

The electric cars will be exempt from import duties and the government has agreed to deploy charging stations in strategic locations in the city of San José.

France

An electric car sold for €23 333 including VAT is eligible for the maximum bonus of 6.300 euros. The emission level for this maximum bonus was raised to 20 gr/km or less. Cars with emission levels between 21 to 60 gr/km are eligible to a bonus of up to €4,000 and 150€ for emissions between 61 to 90 gr/km.

Germany

Electric vehicles and plug-ins in Germany are exempt from the annual circulation tax for a period of five years from the date of their first registration.

The private use of a company car is treated as taxable income in Germany and measured at a flat monthly rate of 1% of the vehicle's gross list price. So plug-in electric cars have been at a disadvantage since their price tag can be as much as double that of a car using a conventional internal combustion engine due to the high cost of the battery. In June 2013 German legislators approved a law that ends the tax disadvantage for corporate plug-in electric cars. The law allows private users to offset the list price with €500 per unit of battery size, expressed in kWh. The maximum offset was set at €10,000 corresponding to a 20 kWh battery. 

In August 2014, the federal government announced its plan to introduce non-monetary incentives through new legislation to be effective by 1 February 2015. The proposed user benefits include measures to privilege battery-powered cars, fuel cell vehicles and some plug-in hybrids, just like Norway does, by granting local governments the authority to allow these vehicles into bus lanes, and to offer free parking and reserved parking spaces in locations with charging points. Not all plug-in hybrids will qualify for the benefits, only those with CO
2 emissions of no more than 50 g/km or with electric range of over 30 km (19 mi) are eligible.

Mexico

Electric cars are exempted from the road rationing implemented by plate number to restrict access to Mexico City to improve its air quality

Netherlands

 Instead of direct purchase subsidies for electric vehicles in the Netherlands, the government established total exemption of the registration fee and road taxes, which translated in savings of approximately €5,324 for private car owners over four years and €19,000 for corporate owners over five years. Other vehicles were also exempt from these taxes if they emit less than 95 g/km for diesel-powered vehicles, or less than 110 g/km for gasoline-powered vehicles. The exemption from the registration tax ended, and from January 1, 2014, all-electric vehicles pay a 4% registration fee and plug-in hybrids a 7% fee.

Buyers also have access to parking spaces in Amsterdam, so they avoid the current wait for a parking place in Amsterdam, which can reach up to 10 years in some parts of the city. Free charging is also offered in public parking spaces. Other factors contributing to the rapid adoption of plug-in electric vehicles are the relative small size of the country (the Netherlands stretches about 100 mi (160 km) east to west); a long tradition of environmental activism; high gasoline prices (US$8.50 per gallon as of January 2013), which make the cost of running a car on electricity five times cheaper; and also some EV leasing programs provide free or discounted gasoline-powered vehicles for those who want to take a vacation driving long distances. With all of these incentives and tax breaks, plug-in electric cars have similar driving costs than conventional cars.

Norway

Norway set the goal to reach 50,000 ZEV by 2018. Among the existing incentives, pure electrics are exempt in Norway from all non-recurring vehicle fees, including purchase taxes, which are extremely high for ordinary cars, and 25% VAT on purchase, together making electric car purchase price competitive with conventional cars. As an example, by early 2013 the price of the top selling Nissan Leaf is 240,690 krone (around US$42,500) while the purchase price of the VW Golf is 238,000 Krone about US$42,000). Electric vehicles are also exempt from the annual road tax, all public parking fees, and tolls (including domestic ferries), as well as being able to use bus lanes.

PHEVs had been more expensive than equivalent gasoline and diesel-powered cars because they paid a higher weight tax due to the additional weight of the battery pack and the accompanying electric components. Because the Norwegian tax system levies higher taxes to heavier vehicles, plug-in hybrids were more expensive than similar conventional cars due to the extra weight of the battery pack and its additional electric components. However, in June 2013 the government approved a tax reduction for plug-in hybrids effective on July 1, 2013, that is expected to improve PHEV sales as the existing weight allowance for HEV and plug-in hybrids of 10% was increased to 15% for PHEVs.

Portugal

Electric cars are exempt from registration tax, annual road tax and has free parking in certain areas.

Spain

Several regional government grant incentives for the purchase of electric and hybrid vehicles. Electric vehicles are eligible to a €6,000 tax incentive and hybrids to €2,000.

UK

The Plug-In Car Grant program reduces the up-front cost of eligible cars by providing a 25% grant towards the cost of new plug-in cars capped at GB£5,000 (US$7,800). Both private and business fleet buyers are eligible for this grant, which is received at the point of purchase and the subsidy is claimed back by the manufacturer afterwards.

All BEVs and eligible PHEVs qualify for a 100% discount from the London Congestion Charge. As of April 2014, approved PHEVs include the BMW i3 with range extender, BMW i8, Chevrolet Volt, Mitsubishi Outlander PHEV, Porsche Panamera S E-Hybrid, Porsche 918, Toyota Prius Plug-in Hybrid, Vauxhall Ampera, and Volvo V60 Plug-in Hybrid.

USA

The federal tax credit for new plug-in electric vehicles is worth $2,500 plus $417 for each kilowatt-hour of battery capacity over 5 kWh, with the total amount of the credit allowed for a new plug-in to be $7,500.