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How to Get an EV Subsidy in Italy

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The ‘Eco-Bonus’ program, started in 2019, has allocated €70 million to subsidies for electric vehicles and EV charging infrastructure for 2020/2021. The program aims to cut net emissions to zero by 2050 and for electric vehicles to replace polluting models by 2035 or earlier. This August, a new bill is being released, set to increase current incentives by 50% from August – December 2020, in a bid to stimulate economic recovery post-COVID-19 lockdown. Here are the updated 2020 incentives:

italy ev incentives  infographic - wallbox

EV Incentives in Italy

National EV Incentives

   Subsidies

  • 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: 
    • Subsidy for new car/van without scrapping an old one, relative to CO2 emissions:
      • Up to 20g CO2/km: €6,000 (BEVs)
      • Between 21-60g CO2/km: €3,500 (PHEVs) 
    • Subsidy for a new car/van while also scrapping an old one, relative to CO2 emissions:
      • Up to 20g CO2/km: €10,000 (BEVs)
      • Between 21-60g CO2/km: €6,500 (PHEVs)
    • For more information or to apply, click here.
  • 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
    • 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. 

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.
    • 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 of EV charging stations. 
  • Conditions:
    • Total amount: €3,000 maximum. 
    • Available to EV charging structures between 3.7kW – 22kW. 
    • Valid from 1 March 2019 to 31 December 2021.
    • For more information, click here.

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 2020 and beyond. 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.

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