Italy launches electric vehicle bonus

Private buyers can receive up to €11,000 towards the purchase of a new electric passenger car, while small businesses are eligible for up to €20,000 when acquiring electric light commercial vehicles. Applications must be submitted before the vehicle purchase, and the scheme requires scrapping an older combustion vehicle of up to Euro 5 standard, which must have been registered in the applicant’s name for at least six months.

The incentive is available to private individuals with an ISEE or ‘Indicatore della Situazione Economica Equivalente’ of less than €40,000 annually and to small businesses. Specifically, as reported earlier, private individuals with an ISEE of up to 30,000 euros can receive the 11,000 euros in subsidies. People with an ISEE of 30,000 to 40,000 euros can receive up to 9,000 euros.

The ISEE is an indicator intended to reflect the family’s economic situation and is given as the value of an annual income; however, the actual income does not have to correspond exactly to this value, as other factors are taken into account. The ISEE is also used, for example, to obtain financial support in the care sector or discounts at public facilities such as daycare centres, schools or universities.

For small businesses, the grant will cover up to 30 per cent of a new electric vehicle, while the cap is 20,000 euros.

Eligible applicants must reside in cities with at least 50,000 inhabitants or within their commuter areas, ensuring the programme prioritises densely populated urban zones. In South Tyrol, for example, eligibility covers Bolzano and 19 surrounding municipalities, including Auer, Pfatten, Kaltern, Eppan, Nals, Gargazon, Sarntal, Ritten, Welschnofen, Deutschnofen, Karneid, Völs and Tiers.

The scheme is funded with around €600 million, partly from the National Recovery and Resilience Plan (PNRR), and aims to support the uptake of zero-emission vehicles while complementing investments in electric charging infrastructure. Authorities target the replacement of approximately 39,000 combustion-engine vehicles by mid-2026.

The programme is part of PNRR M2 C2 Investment 4.5, designed to modernise private and light commercial fleets with zero-emission vehicles. It complements ongoing efforts to expand the public charging network and accelerate Italy’s transition to electric mobility. Authorities have confirmed that combining the national bonus with regional incentives of €2,000 is still under review.

Update 29 Oktober 2025

Italy’s €595 million incentive programme for electric vehicles was fully exhausted within a day of launch. According to data provided by Sogei to the Ministry of the Environment and Energy Security (MASE), a total of 55,680 vouchers were requested by private citizens and microenterprises.

“All funds are currently reserved. Any funds that become available will be immediately reactivated on the platform,” the Ministry confirmed in a statement.

The measure, which surpassed its original target, was designed to promote the renewal of the national vehicle fleet with zero-emission models. Access to the incentive required the scrapping of a combustion-engine vehicle up to Euro 5 standard.

mase.gov.it (in Italian), mase.gov.it (application platform), mase.gov.it (update)