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Benefits of business electric driving

These are the benefits (financial and otherwise) when your employees drive electric for business!

Encouraging electric driving among your employees can make a positive contribution to climate goals. But there are also a number of financial benefits. In this blog, read the 4 financial benefits when your employees drive electric for business!

The financial benefits for employers

In addition to helping you meet business social responsibility (CSR) goals by encouraging electric driving, it would obviously be nice if there were financial benefits as well. Fortunately, there are!

  • First, electric cars are exempt from road tax. If an employee opts for a semi-electric or plug-in hybrid car that emits less than 50g CO2/km, then you pay half the rate. This tax exemption is valid through 2024. In 2025, you will pay 25% of the normal rate.
  • Did you know that you can also take advantage of local grants? In addition to national tax regulations, municipalities and provinces often offer grants to make choosing an electric car more attractive. If you want to know what your municipality's policy on this is, then check out the Nederland Elektrisch website.
  • As a third benefit, fully electric cars are exempt from Tax on Passenger Cars and Motorcycles, known as BPM. This is actually also the main incentive behind electric driving. And this will remain applicable at least through 2024.
  • As a final point, the Environmental Investment Allowance (MIA) can also provide a tax benefit for you. The MIA is a tax deduction you can deduct from your company's profits. One condition for this is that this investment appears on the Environmental List (published annually by RVO). You can use this deduction, for example, if you invest in a charging station.

Encouraging electric driving for business among your employees

Of course, you will first have to get your employees to actually choose an electric model. Workers appear to be quick to choose a car on the basis of the 'extreme situation': those few times a year that a car is driven to a vacation destination. Thus they tend not to opt for an electric model, which has a lower range.

One of the advantages for business drivers is that electric driving is made attractive by the government with a lower tax addition rate. This tax addition rate is set at 8% for 2020, and for now it will be increased by 4% in 2021. Incidentally, since 2019, this advantageous tax addition rate has only applied to cars with a list price of up to 50,000 euros. If the car is more expensive to purchase, the 'normal' addition rate of 22% applies.

But did you know that you can also encourage electric driving among your employees through the efficient use of business rental cars?