DEDUCTION (ELECTRIC VEHICLES) RULES

DEDUCTION (ELECTRIC VEHICLES)

SUBSIDIARY LEGISLATION 123.124

DEDUCTION (ELECTRIC VEHICLES) RULES

1st January, 2011

LEGAL NOTICE 13 of 2011, as amended by Legal Notice 231 of 2016.

The title of these rules is the Deduction (Electric Vehicles)

Rules.

In these rules, unless the context otherwise requires

"electric vehicle" means a vehicle that derives its motive power

exclusively from an electric motor;

"hybrid vehicle" means a vehicle having at least two different

energy converters and two different energy storage systems for the

purpose of vehicle propulsion;

"qualifying expenditure" means expenditure of a capital nature

incurred on the acquisition of new electric or hybrid vehicles;

"qualifying person" means a company that carries on a trade or

business.

(1) Where a qualifying person incurs qualifying

expenditure in the year preceding the year of assessment, a

deduction shall be allowed against the said person’s income

charged to tax for such year of assessment. 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.

(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.

(3) Where a deduction is claimed under these rules, no

deduction in respect of wear and tear may be claimed in respect of

the same electrical vehicle.

(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.