Ireland Budget 2027: EV tax relief extended, carbon tax delayed, home solar income relief raised

Ireland's Budget 2027 includes targeted energy transition measures: electric vehicle vehicle registration tax relief is extended to the end of 2028, while VRT rates rise for cars emitting over 80g/km. The income tax relief on profits from small-scale renewable generation, such as home solar panels, increases from 400 to 600 euros. Carbon tax on auto fuels is deferred to May 2027, and the rate on kerosene and home heating oil is cut to 48.50 euros per tonne. The budget adjusts the timing of several carbon tax increases rather than removing them, which gives households and businesses a short-term reprieve but keeps the trajectory in place. KPMG notes the absence of a broader Green Transition Tax Incentive and argues for a predictable tax framework to encourage investment in new technologies, infrastructure, and business models. The key takeaway: support for EVs and home renewables remains, but the wider transition still depends on future policy decisions around carbon pricing and investment incentives.