Government proposes that amendments to purchase subsidies be approved

The Government proposes that the President of the Republic approve the act amending the Act on Fixed-Term Subsidies for Purchasing and Converting Vehicles to Use Alternative Fuels or Propulsion Systems.

The Act is to be amended to comply with the changes in the EU legislation on state aid. 

It will be applied to the purchase subsidy for vans and trucks, for which the application deadline is 31 December 2024. In future, hydrogen-powered vans and trucks will also be eligible for support. The support for hydrogen-powered vans and lorries is based on the 2023 budget decisions, so introducing a new subsidy will not increase central government expenditure.

Certain provisions on purchase subsidies for fully electric cars and conversion subsidies for passenger cars will be repealed, because the application period for them has ended. In its statement, Parliament required that a new government proposal be submitted to reintroduce subsidies for gas and ethanol conversions.

In future, some of the subsidies for gas-powered vans and trucks can be granted as de minimis aid based on the so-called De Minimis Regulation. However, the purchase subsidy for gas-powered vans and trucks cannot be granted to businesses for road freight transport services.

This is due to the limitations in the de minimis Regulation that will remain in force until the end of 2023. Once the new de minimis Regulation has been published, the national purchase and conversion subsidy programme is to be reviewed.

Next steps

The Government proposes that the President of the Republic approve the amendment to the Act on purchase and conversion subsidies and that it would enter into force on 31 December 2023. The President of the Republic is expected to approve the act on Friday, 15 December 2023.

Inquiries:

Miikka Rainiala, Director of Unit, tel. +358 295 342 051, miikka.rainiala(at)gov.fi

Päivi Antikainen, Director of Unit, tel. +358 295 342 101, paivi.antikainen(at)gov.fi