The Italian government announced on April 6th that it had approved additional funds for the next three years to encourage the purchase of new cars under its 'auto bonus' discount scheme.
You can apply for the new bonus to purchase older models of petrol and diesel cars within a certain limit of CO2 emissions, as well as low-emission electric or hybrid vehicles and motorbikes.
READ ALSO: Italian government announces new car discounts of up to €3,000
Between 2022 and 2024, the Italian government has allocated €650 million per year for the scheme, with a maximum of €5,000 allocated for every new car bought.
Full details of the bonus were made available as the Italian government published the decree last Monday (which you can find here, in Italian).
Based on the decree text, here's how the scheme works and how much you can claim towards the purchase of a new vehicle.
Which cars does the bonus apply to?
The law takes two parameters into account: carbon dioxide (CO2) emissions, which cannot exceed 135 g/km, and the list price.
The maximum limits are broken down as follows:
- €35,000 for cars in the 0-20 g/km CO2 range
- €45,000 for the 21-60 g/km range
- €35,000 for the 61-135 g/km range
To know how much bonus you can claim, you'll need to be aware of the exhaust emissions - both of the car you're buying and potentially, a car you may scrap.
The bonus refers to the six classes of vehicle emissions: Euro 1, 2, 3, 4, 5 and 6. Each class gives an emissions standard based on the registration date of the car and how much CO2 the car produces per kilometre.
You can check Italy's Ministry of Infrastructure and Sustainable Travel website here to find out the environmental class of your vehicle.
The bonus can be used for both purchasing and leasing of cars.
Do I have to scrap a car to get the bonus on a new car?
No. You only need to scrap a car at the same time if you want to buy hybrid and thermal cars (petrol or diesel) with emissions between 61 and 135 g/km.
If you want to buy an electric car (0-20 g/km) or plug-in hybrid (21-60 g/km) scrapping is not mandatory.
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In these two situations, however, those who have a car to be scrapped can get an extra €2,000 bonus.
You don't have to be the owner of the car to be scrapped either - but they must be living with you in the same household.
Overview of funds available
So, how much you can claim depends on the carbon dioxide emissions and whether you scrap a car at the same time.
Here's a rundown:
- Without scrapping
- 0-20 g/km CO2: €3,000
- 21-60 g/km: €2,000 - With scrapping
- 0-20 g/km: €5,000
- 21-60 g/km: €4,000
- 61-135 g/km: €2,000
Let's look further into how that works out for different car types.
Electric car incentives up to €5,000
You can claim €3,000 for M1 category vehicles with a price of up to 35,000 euros + VAT.
According to the European Commission, M1 means a vehicle designed for the carriage of passengers and has no more than eight seats in addition to the driver's seat - for private, non-commercial use.
The vehicle must be at least Euro 6 classification in the European exhaust emissions standard.
You can claim the full amount of €5,000 if you scrap a car at the same time as purchasing a new one.
READ ALSO: ‘How we used a government bonus to buy an electric car in Italy’
However, to be eligible for the extra €2,000, the law allows cars below Euro 5 to be scrapped. This means Euro 0, 1, 2, 3 and 4 classes.
As already indicated, it must have been registered in the name of the purchaser of the new car (or a cohabiting family member) for at least 12 months.
Hybrid car incentives up to €4,000
For the purchase of plug-in hybrid cars with a price of up to €45,000 + VAT, you can claim €2,000 if the vehicle is a Euro 6 class.
A further €2,000 may be added if you scrap a car in a class lower than Euro 5 at the same time.
Car scrapping incentives
To encourage drivers to move towards more ecological private transport, the government is incentivising scrapping older cars with poor exhaust emission ratings in favour of newer, lower emission cars.
The scrapped car, again, must be owned for at least 12 months and must be in an emission class lower than Euro 5.
There are higher discounts on offer, the lower emissions your new vehicle produces:
- Cars 0-20 g/km CO2 (up to €35,000 + VAT): €3,000 without scrapping - €5,000 with scrapping
- Cars 21-60 g/km CO2 (up to €45,000 + VAT): €2,000 without scrapping - €4,000 with scrapping
- Cars 61-135 g/km CO2 (up to €35,000 + VAT): €2,000 with scrapping
Motorbikes and moped bonus
There are also funds available for those looking to buy two wheels, rather than four.
The decree provides incentives for the purchase of electric and hybrid mopeds and motorbikes (categories L1e, L2e, L3e, L4e, L5e, L6e, L7) from 2022 to 2024.
Here's what you can claim:
- a 30 percent discount on the purchase price of an electric or hybrid motorbike or moped, granted up to a maximum of €3,000. Or 40 percent up to €4,000 if you scrap a motorbike in an emissions class from Euro 0 to 3.
- For brand new mopeds and motorbikes, on the other hand, you can get a a 5 percent discount from the dealer, a 40 percent discount on the purchase price and up to €2,500 with scrapping of a motorbike up to class Euro 3.
What else do I need to know?
As with all bonuses, there are some conditions you need to be aware of before claiming the auto bonus.
The vehicle purchased with the incentives must be registered within 180 days of claiming. However, this could change following calls to extend the deadline. That's because the delivery time is not always less than 180 days, especially for cars in the 21-60 g/km emissions range.
You also can't sell on a vehicle bought with the bonus until you've owned it for at least 12 months.
The bonus is in force now following its publication in the new decree. However, be aware that not all computer systems may have caught up yet should you rush to the dealer ready to sign on the dotted line today.
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