The ‘Ecobonus’ program, started in 2019, has allocated a total of €312 million to subsidise sustainable driving in 2021. The program aims to cut net emissions to zero by 2050 and for electric vehicles to replace polluting models by 2035 or earlier. This year, under the Legge di bilancio 2021, the government has launched a new €420 million scheme that offers additional incentives on top of the current Ecobonus. Here are the updated 2021 incentives:
???? EV Charging Incentives
Tax incentives:
Individuals, companies and condominiums can access a new tax deduction of 50% spread out into ten equal annual installments, for the purchase and installation costs of EV chargers.
- Conditions:
- Total amount: €3,000 maximum.
- Available to EV charging structures up to 22kW.
- Valid from 1 March 2019 to 31 December 2021.
- Installation needs to be realised within specific energy efficiency works in the building.
- For more information, click here.
- Superbonus: under the Rilancio (Relaunch) decree, the tax deduction is to be increased to 110% of the purchase and installation costs of EV charging stations.
???? EV Incentives in Italy
National EV Incentives
Private EV grants:
- Purchase grant: Purchase grant: Incentives are granted to consumers who purchase cars with CO2 emissions of 60 g/km or less. The amount of the incentive also depends on whether the beneficiary ensures the scrapping of an old internal combustion engine (ICE) car that is within the European emission rate between Euro 0 to Euro 4:
| Car type | Emission level | Ecobonus (max. grant) | Additional bonus for 2021 (max. grant; Legge di bilancio 2021) | ||
|---|---|---|---|---|---|
| With scrappage of old car | Without scrappage of old car | With scrappage of old car | Without scrappage of old car | ||
| M1 | ≤ 20 g / km | €6,000 | €4,000 | €2,000 | €1,000 |
| > 20 g / km ≤ 60 g / km | €2,500 | €1,500 | €2,000 | €1,000 | |
| L | ≤ 60 g / km | €4,000 (40% of purchase price) |
€3,000 (30% of purchase price) |
n/a | n/a |
- For more information or to apply, click here.
Commercial EV grants
Under the Legge di bilancio 2021, the following commercial grants are available for N1 & M1 type cars purchased between 1 January 2021 and 31 December 2021:
| EV type | Vehicle weight (in tons) |
Max. bonus (with scrappage of old car) | Max. bonus (without scrappage of old car) |
|---|---|---|---|
| Fully electric car | 0-1.999 | €4,000 | €3,200 |
| 2-3.299 | €5,600 | €4,800 | |
| 3.3-3.5 | €8,000 | €6,400 | |
| Hybrid and alternative fuel cars | 0-1.999 | €2,000 | €1,200 |
| 2-3.299 | €2,800 | €2,000 | |
| 3.3-3.5 | €4,400 | €2,800 | |
| Other types of power supply | 0-1.999 | €1,200 | €800 |
| 2-3.299 | €2,000 | €1,200 | |
| 3.3-3.5 | €3,200 | €2,000 |
Public Procurement:
- According to Italian budget law for 2020, public administrators when renewing their fleet have to reserve a 50% quota for the purchase or rental of electric, hybrid or hydrogen vehicles.
Tax Benefits
- Ownership tax:
- In most Italian regions, both fully-electric vehicles and plug-in hybrids are exempt from paying annual ownership tax for five years from the date of registration. After this five-year period, they benefit from a 75% reduction of the equivalent tax rate for most petrol vehicles.
- Company car tax:
- 25% discount on tax for cars emitting less than 60g/km CO2
- ‘Eco-tax’:
- New ICE vehicles purchased or leased and registered in Italy between 1 March 2019 and 31 December 2021 will have to pay a penalty for choosing a polluting model.
Local Benefits
- Free parking & free circulation in ZTL (Limited Traffic Zones):
- Some cities in Italy offer further incentives, such as free parking in urban areas and free circulation in limited circulation areas (ZTL zones) for hybrid or electric cars.
Increasing funding by 50% to boost EV uptake post-Corona
The latest bill will boost the EV and EV charging incentives available to Italian residents for the rest of 2021. To find out more about EV and EV charging incentives in other European countries and how they compare to the Italian subsidies, read our complete EU EV incentives guide.
