Government proposes amendments to the act on purchase subsidy schemes

On 8 May 2024, the Government submitted a legislative proposal to Parliament on amending the Act on Fixed-Term Subsidies for the Purchase of Vehicles Powered by Alternative Fuels.

The purpose of the proposal is to continue the subsidy schemes for the purchase of gas-fuelled vans and lorries in line with the changes that have been made in EU state aid legislation. The amendments proposed for national legislation on the basis of EU regulation would allow subsidies for the purchase of gas-fuelled vans and lorries intended for the transport of goods by road.

Some of the subsidies for purchasing gas-fuelled van and lorries are currently granted as de minimis aid under the so-called De Minimis Regulation of the European Commission. A new De Minimis Regulation entered into force on 1 January 2024 and its amendments must be taken into account in national aid schemes as of no later than 1 July 2024.

According to the current Act, the application period for the purchase subsidy for electric, gas-fuelled and hydrogen-powered vans and trucks will end on 31 December 2024.

Conversion subsidies for passenger cars to be re-introduced in the Act 

The Government proposes that the regulation on conversion subsidies be reintroduced in legislation.  Applications for the subsidy would be submitted to the Finnish Transport and Communications Agency Traficom. According to the proposal, a conversion subsidy of EUR 1,000 could be granted for converting a car to run on gas, and a subsidy of EUR 200 for converting a car to be powered by ethanol.

The Government proposes that subsidies could be applied for conversions that will be made after the Act's entry into force.  Conversion subsidies would be applicable until 15 December 2024.

Next steps

A referral debate will be held on the proposal now submitted by the Government to Parliament. The timetable for the debate will be listed on Parliament’s website (upcoming plenary sessions). 

After the referral debate, the proposal will be taken to a Parliamentary Committee. Once the Committee’s report is ready, the matter will be discussed in a plenary session.

The proposed amendments are expected to enter into force by 1 July 2024 at the latest.

Inquiries:

Emmi Simonen, Senior Specialist, tel. +358 295 342 108, [email protected]

Sara Vänttinen, Senior Specialist, tel. +358 295 342 177, [email protected]