Government proposes to extend subsidies for purchasing electric cars and converting cars until end of December

October 7, 2021, the government has submitted to Parliament a legislative proposal to extend the subsidy for the purchase of electric cars and the conversion of passenger cars to gas or ethanol by one month, until December 31, 2021.

The legal provisions in force concern purchase and conversion subsidies, applications for which are submitted before November 30, 2021. The Government’s objective is to allow households to apply for purchase and conversion subsidies until ‘by the end of December 2021. By favoring less polluting vehicles, the purchase and conversion subsidies help to modernize the Finnish car fleet, by reducing greenhouse gas emissions from transport. Funding for the grants is expected to be included in the Fourth Supplementary Budget for 2021.

The temporary law on purchase subsidies entered into force on January 1, 2018. An appropriation of 24 million euros has been budgeted for subsidies for the purchase and conversion of passenger cars for 2018-2021. However, as of September 13, 2021, around € 13 million of the credit had still not been claimed. A buyer or long-term lessee of a new electric car can receive a € 2,000 purchase subsidy from the central government. The conversion aid is 1,000 euros for the conversion of a gasoline or diesel car to gas and 200 euros for its conversion to ethanol.

After that ?

A referral debate will take place on the proposal now submitted by the Government to Parliament. The timetable for the debate will be published on Parliament’s website (forthcoming plenary sessions). After the referral debate, the proposal will be sent to a parliamentary committee. The proposed act is due to enter into force on December 1, 2021 and is part of the implementation of the roadmap for fossil fuel-free transport.

In addition, the Ministry of Transport and Communications is preparing a second government proposal to maintain the current purchase and conversion subsidies. This legislative project also prepares new subsidies for the purchase of electric and gasoline-powered vans and electric trucks. The deadline for comments on the proposal is October 10, 2021. The proposal is expected to be discussed as part of the amendments to the budget proposal for 2022 at the end of 2021.

Source: Ministry of Transport and Communications

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