Deduction (Electric Vehicles) (Amendment) Rules, 2016

L.N. 231 of 2016

INCOME TAX ACT

(CAP. 123)

Deduction (Electric Vehicles) (Amendment) Rules, 2016

IN exercise of the powers conferred by articles 14(2) and 96 of

the Income Tax Act, the Minister for Finance has made the following

rules:-

(1) The title of these rules is the Deduction (Electric Citation and

Vehicles) (Amendment) Rules, 2016 and these rules shall be read and commencement

construed as one with the Deduction (Electric Vehicles) Rules, S.L.123.124

hereinafter referred to as "the principal rules".

(2) These rules shall come into force as from the year of

assessment 2017, in respect of expenditure incurred as from 1st

January 2016.

Rule 2 of the principal rules shall be amended as follows

Amends rule 2

of the principal

rules.

(a) the definition "electrical

vehicle"

shall

be

substituted by the following

" "electric vehicle" means a vehicle that derives its

motive power exclusively from an electric motor;";

(b) immediately after the definition "electric vehicle"

there shall be added the following new definition

" "hybrid vehicle" means a vehicle having at least

two different energy converters and two different energy

storage systems for the purpose of vehicle propulsion;";

and

(c)

in the definition "qualifying expenditure", for the

words "electrical vehicles" there shall be substituted the words

"new electric or hybrid vehicles".

Rule 3 of the principal rules shall be amended as follows

Amends rule 3

of the principal

rules.

(a) in sub-rule (1) thereof, the words "equivalent to

125% of the cost incurred" shall be deleted and immediately

after the provisions of sub-rule (1) there shall be added the

following: "The said deduction shall be equivalent to 150% of

the cost incurred in the case of an electric vehicle and 125% of

the cost incurred in the case of a hybrid vehicle.";

(b) sub-rule (2) thereof shall be substituted by the

following

"(2) The total deduction claimed under these rules

as aforesaid shall not exceed forty thousand euro (€40,000)

in the case of an electric vehicle and thirty thousand euro

(€30,000) in the case of a hybrid vehicle."; and

(c)

immediately after sub-rule (3) thereof there shall be

added the following new sub-rule

"(4) Any grant or other benefit received from the

Government in respect of a vehicle to which these rules

apply shall be deducted from the cost incurred for the

purpose of calculating the deduction allowable under this

rule.".

€0.18