Italy launches new EV incentive programme offering up to €20,000

The Italian Ministry of the Environment and Energy Security (Ministero dell’Ambiente e della Sicurezza Energetica, MASE) has introduced a new incentive scheme to promote the purchase of battery-electric vehicles (BEVs). The measure was formalised through the Decree of 8 August 2025 published in the Gazzetta Ufficiale on 8 September 2025 (Serie Generale n. 208).

The initiative forms part of Italy’s National Recovery and Resilience Plan (PNRR), under Mission 2, Component 2, Investment 4.5, which supports the renewal of private and light-commercial fleets with zero-emission vehicles. The programme allocates €597.3 million in funding to be used until mid-2026, with a target of replacing around 39,000 internal-combustion vehicles.

Key features of the scheme

• Private individuals can receive up to €11,000 when purchasing a new BEV and scrapping an old Euro 5 or earlier internal-combustion vehicle.
• The amount depends on the applicant’s ISEE (Indicatore della Situazione Economica Equivalente):
  • up to €11,000 for ISEE ≤ €30,000;
  • up to €9,000 for ISEE between €30,000 and €40,000.
• Small businesses (micro-enterprises) may obtain up to €20,000 per vehicle, corresponding to 30 % of the purchase price of a new electric light-commercial vehicle (categories N1–N2).
• The incentive applies mainly within municipalities of 50,000 inhabitants or more and their surrounding commuter areas.
• Applications must be submitted before the vehicle purchase via the national online platform; the subsidy is granted as a direct discount at the point of sale.
• The measure also encourages complementary investment in charging infrastructure, particularly in urban zones with high pollution exposure.

Policy context

The programme reflects Italy’s strategy to reduce transport-related emissions and support economic recovery through the PNRR. It complements European Union objectives under the European Green Deal and the Regulation (EU) 2023/1804 on the deployment of alternative fuels infrastructure (AFIR), ensuring that financial incentives for vehicle purchases are matched by adequate charging-infrastructure development.

The government is also evaluating whether the new national incentive may be combined with existing regional subsidies of up to €2,000, creating an additional boost for consumers and small enterprises.

This initiative positions Italy among the most ambitious EU Member States in terms of direct purchase support for zero-emission vehicles, aiming to accelerate market uptake and stimulate domestic demand for clean mobility.

Official source:Decreto 8 agosto 2025 – Criteri e modalità per la concessione di incentivi a fondo perduto previsti nel PNRR (Missione 2 Componente 2 Investimento 4.5)

Views and opinions expressed are those of the author(s) and do not reflect those of the European Commission.