Italy playing with idea to subsidize EVs up to €13.750

According to a draft document the Italian press agency ANSA could lay hands on, the Italian government is playing around with the idea of subsidizing the private purchase of electric vehicles from 6 000 to 13 750 euros. The condition is to scrap a Euro 2 car or even older, and it would only apply to households with a yearly ‘ISEE’ income of less than €30 000.

The ISEE is an indicator of the family’s economic condition, and it is issued by the Italian National Social Security Institute, INPS, for those with income and assets in Italy. The ISEE calculation considers factors such as the family’s income, assets, and number of family members. It determines how much assistance a family can receive from the Italian government.

Up to €10 000 for hybrids

The document further proposes incentives for hybrids, ranging from 4 000 to 10 000 euros, and for ‘low-emission cars’ from 1 500 to 3 000 euros. The Italian government would put €930 million on the table, including €570 million of new funds and ‘leftovers’ from previous incentives. The draft also mentions that it applies to commercial vehicles, taxis, and long-term rentals.

Despite e-car sales rising by 35% last year, battery electric cars accounted for only 4,2% of new car sales in Italy in 2023. Plug-in hybrids represented an equal share, and standard hybrids (HEV) accounted, according to the latest figures available from ACEA, for 36,2% at the end of November.

Incentives today

Until now, Italy has a less favorable incentive program with a €3 000 subsidy (€5 000 with scrappage) for a BEV or PHEV emitting less than 20 g CO2/km and a selling price below €35 000 + VAT. You can get a €2 000 premium (€4 000 with scrappage) for a BEV/PHEV emitting between 21 to 60 g CO2/km and a selling price of under €45 000 + VAT.

BEVs are granted a five-year tax exemption from the date of first registration. After this period, a 75% tax rate reduction, as applied to equivalent gasoline vehicles, will be charged. On top of that, domestic users can get a government contribution of 80% (max €1 500) of the purchase and installation price of standard power infrastructures for recharging electric vehicles.

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