Monitoring of the Environmental Investment Deduction (MIA) tax scheme for electric taxis and passenger buses

Since 1 January 2020, electric passenger buses (including wheelchair vehicles) and electric taxis have been eligible for a tax deduction within the framework of the Environmental Investment Credit (MIA) scheme. This scheme is intended as an incentive for the taxi industry to switch to zero-emission vehicles.

The aim of this study was to investigate to what extent the MIA scheme led to additional purchases of zero-emission vehicles in 2020. It also identified possible reasons why taxi operators choose whether or not to use the MIA scheme. The study is based on the 2020 annual figures. Figures for 2021 were not yet available at the time this report was prepared.

The study shows that in the year 2020, a total of 86 electric passenger car cabs and 250 vehicles of electric cab buses were granted a tax deduction under the MIA scheme. It has not been investigated to what extent the decrease in mobility due to corona measures affected applications for the MIA scheme, but it can be expected that this had a negative effect on the number of applications.

Interviews with transport operators show that flanking policies, such as concession conditions in target group transport and the allocating of good taxi stands for electric taxis, are important reasons for choosing an electric taxi. The parties interviewed also indicated that they would often have made the switch even in the absence of the MIA scheme. Based on this, we conclude that the MIA scheme for electric taxis and taxi buses has a high proportion of free riders.

The same transport operators indicated in the interviews that they find it a disadvantage that the payment of a tax deduction under the MIA scheme is dependent on the profitability of the company and is only paid when annual figures are available. A scheme in the form of a subsidy paid out at the time of purchase of the vehicles would have a stronger influence on their purchase decision.