HEALTHPLAN MAGAZINE

In a bid to bolster the adoption of electric vehicles and the development of charging infrastructure, Spain's Council of Ministers, responding to a proposal from the Ministry for Ecological Transition and the Demographic Challenge (MITECO), has greenlit a Royal Decree extending the Electric Mobility Incentive Program (MOVES III) until July 31, 2024. Originally slated to conclude at the end of this year, the extension adds seven more months to the program's validity.

MOVES III, a key initiative under the Recovery, Transformation, and Resilience Plan (PRTR), is designed to encourage the purchase of electric vehicles and the installation of charging points. Managed by the Institute for Energy Diversification and Saving (IDAE) in collaboration with autonomous communities, the program boasts a budget of 1.2 billion euros. Due to a surge in applications, this budget has already experienced two extensions.

The PRTR set an ambitious goal of 238,000 aid requests for electric vehicles and charging points in 2023, a target that has been surpassed with over 250,000 applications already registered. Remarkably, there is still a substantial €290 million available to accommodate the persisting demand.

To sustain momentum towards the national objective of having 5.5 million electric vehicles on the road by 2030, the Spanish government, through Royal Decree 266/2021, decided to prolong MOVES III by an additional seven months. Simultaneously, the Council of Ministers introduced regulatory changes aligned with EU law amendments.

The alterations include imposing a maximum annual budget of 150 million euros for specific aid programs benefiting companies, along with a requirement for smart functionalities in charging points with capacities up to 22 kilowatt-hours. The impact of these changes is anticipated to affect less than 2% of cases and does not extend to individuals, the self-employed, communities of owners, or public administrations.

In a strategic move to further boost electric vehicle adoption, the Spanish government expanded the scope of MOVES III last June, allowing aid for pre-owned electric vehicles less than a year old. Previously restricted to new electric and hybrid vehicles, the program now covers used electric vehicles, offering incentives of up to €7,000 for electric cars, €9,000 for electric vans, and €5,000 for plug-in or electric hybrids.

Additionally, to complement these incentives, the government approved a tax deduction of up to 15% on Personal Income Tax returns for investments in electric vehicles or charging points compatible with the MOVES III program. This tax relief, effective until December 2025, offers a maximum deduction of €20,000, providing further encouragement for individuals and businesses to embrace sustainable mobility solutions.

This article was brought to you by HealthPlan, experts in expat health insurance in Spain.

Source: Miteco