Amendments to the act on purchase subsidy schemes

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

The amendment will allow the subsidy schemes for the purchase of gas-fuelled vans and lorries to continue 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 also 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 vans 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.

The application period for the purchase subsidy for electric, gas-fuelled and hydrogen-powered vans and lorries will end on 31 December 2024.

Regulation on conversion subsidies for passenger cars is also being reinstated in the Act at the same time. A conversion subsidy of EUR 1,000 may 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.

Subsidies can be applied for conversions that will be made after the Act’s entry into force. Conversion subsidies are applicable until 15 December 2024.

Subsidies for purchasing vans and lorries and conversion subsidies for passenger cars are applicable from the Finnish Transport and Communications Agency Traficom. 

Next steps

The President of the Republic is expected to approve the bills on 28 June 2024. The amendments will enter into force on 30 June 2024.

Inquiries:

Emmi Simonen, Senior Specialist, tel. +358 29 534 2108, [email protected]