Spain has once again decided to extend its Moves III Plan, a program designed to encourage the purchase of electric vehicles and the installation of charging stations, now set to last until June 30, 2025.
Government’s Strategic Move
The Spanish government’s decision to prolong the Moves III Plan by another six months underlines its commitment to promoting sustainable transportation. Initially slated to end on December 31, this extension ensures continuous support for those considering transitioning to electric mobility.
Tax Benefits Extended
In addition, it has been confirmed that the option to deduct part of the cost of purchasing an electric vehicle from income tax will remain in place until December 31, 2025. Buyers can continue to avail themselves of a deduction worth 15% of the car’s value up to a maximum of $21,000, translating into a potential tax benefit of nearly $3,200.
Impact on Electric Vehicle Adoption
This decision to uphold the Moves III Plan into the first half of 2025 serves as a significant incentive for prospective electric vehicle buyers. The National Integrated Energy and Climate Plan for next year had initially planned to phase out these subsidies, sparking criticism due to its possible adverse effects on Spain’s automotive electrification.
A History of Extensions
This is not the first instance where the Spanish government has prolonged the validity of the Moves III Plan. Originally set to conclude at the end of 2023, it was initially extended until mid-2024 and later through December. Now with a new deadline set for June 30, 2025, there appears ample room for further extensions before this date arrives.
What’s Next for Moves III in 2025?
An estimated investment of approximately $270 million will accompany this extension. Out of this amount, $54 million are residues from this year’s budget while an additional $216 million represents new allocations.
- The financial aid for purchasing electric or plug-in hybrid vehicles remains unchanged compared to previous years.
- Eligible vehicles must cost up to approximately $47,000 before VAT inclusion.
The plan provides incentives up to $2,700 (without scrapping) or $5,400 (with scrapping) for plug-in hybrids. For fully electric cars, assistance can reach up to $4,900 (without scrapping) or $7,600 (with scrapping).
Challenges and Criticisms
While the Moves III Plan plays a crucial role in fostering electric mobility adoption in Spain, it is not without controversy. One major point of contention is delays in grant disbursement which can exceed over a year post-vehicle acquisition depending on regional governance.
