Subsidy new standard! See how much you can make up

The National Development and Reform Commission and the Ministry of Finance recently issued a notice on "Several Measures to Support Large-scale Equipment Renewal and Trade-in of Consumer Goods", proposing various measures to make overall arrangements for about 300 billion yuan of ultra-long-term special treasury bond funds to support large-scale equipment renewal and trade-in of consumer goods.

According to the relevant person in charge of China's National Development and Reform Commission, the content of the afterburner support can be summarized as "three large".

First, the scope of support has been greatly expanded. In terms of equipment renewal, on the basis of equipment renewal and recycling in the original seven fields of industry, environmental infrastructure, transportation, logistics, education, culture and tourism, and medical care, the scope of ultra-long-term special treasury bond support will be expanded to equipment renewal in the fields of energy and power, old elevators, as well as energy conservation, carbon reduction and safety transformation in key industries. In terms of trade-in of consumer goods, we will draw on the mature experience and practices of some regions to replace and update passenger cars for individual consumers, trade in household appliances and electric bicycles, and purchase items and materials for old house decoration, kitchen and bathroom renovation, and home renovation for the elderly, etc., all of which will be included in the scope of ultra-long-term special treasury bond financial support, so as to better meet the needs of residents for consumption upgrading and continuously improve the quality of life of residents. Second, the organization method should be greatly optimized. The 300 billion yuan of ultra-long-term special treasury bond funds taken out this time include two directions: equipment renewal and trade-in of consumer goods. In terms of equipment renewal, nearly 150 billion yuan will be arranged, and the current specific estimate is about 148 billion yuan to support equipment renewal. Fully consider the characteristics of different fields and different types of projects, lower the threshold for fund declaration, and effectively support the equipment renewal and technological transformation of small single scale, but with a large number of points and a wide range of areas. At the same time, the project application and approval process is simplified to effectively improve work efficiency. In terms of the trade-in of consumer goods, about 150 billion yuan of ultra-long-term special treasury bonds will be directly arranged to the local governments to support the local governments in independently implementing the trade-in of consumer goods. Different from traditional support methods such as investment subsidies, this time the funds are directly arranged to the local government, giving the local government greater autonomy, and giving full play to the creativity of the local government in line with the overall requirements of the "two new", which is also conducive to more quickly and conveniently direct these real money discounts to consumers. Third, the subsidy standard will be greatly increased. The "Several Measures on Supporting Large-scale Equipment Renewal and Trade-in of Consumer Goods" has further increased subsidies for the upgrading of key areas. For example, in terms of automobile scrapping and renewal, the subsidy standard will be increased from 10,000 yuan for the purchase of new energy passenger vehicles and 7,000 yuan for the purchase of fuel passenger cars to 20,000 yuan and 15,000 yuan respectively, which have doubled or more. In terms of financial discount for equipment renewal loans, the proportion of interest discount given by the central government to equipment renewal loans to eligible business entities has been increased from 1 percentage point to 1.5 percentage points. In addition, the "Several Measures" clarified the subsidy standards for the scrapping and renewal of old operating vehicles and ships, the scrapping and renewal of agricultural machinery, the renewal of new energy buses and power batteries, etc., which have been greatly increased compared with before. In particular, the majority of consumers are very concerned about household appliances, the "Several Measures" proposes that individual consumers will be given a 15% subsidy on the sales price of 8 types of household appliances such as refrigerators, washing machines, TVs, and air conditioners with energy efficiency or water efficiency standards of level 2 and above; An additional 5% subsidy will be given to the purchase of products with energy efficiency or water efficiency standards of level 1 and above.

The specific measures are as follows↓

• Increase support for device updates

(1) Optimize the support method for equipment renewal projects. Arrange special funds for large-scale equipment renewal of ultra-long-term special treasury bonds, and increase support for equipment renewal. On the basis of equipment renewal and recycling in the fields of industry, environmental infrastructure, transportation, logistics, education, cultural tourism, medical care, etc., the scope of support will be expanded to equipment renewal in the fields of energy and power, old elevators, and energy conservation, carbon reduction and safety transformation in key industries, and dynamically adjusted in combination with the actual situation. Taking into account the characteristics of different fields, we will lower the threshold for the declaration of ultra-long-term special treasury bond funds, and no longer set the requirement of "the total investment of the project shall not be less than 100 million yuan", so as to support the equipment renewal of small and medium-sized enterprises. Relevant projects will be supported by the National Development and Reform Commission in the form of investment subsidies, simplifying the application and approval process, and effectively improving work efficiency.

(2) Support the scrapping and renewal of old operating ships. Accelerate the scrapping and renewal of old ships with high energy consumption and high emissions, and promote the development of new energy and clean energy ships. Support the scrapping and renewal of old ships with more than 10 years of age for inland passenger ships, more than 15 years for cargo ships, and more than 15 years for coastal passenger ships and more than 20 years old for cargo ships. If it is updated to a fuel-powered ship or a new energy and clean energy ship on the basis of scrapping, it will be subsidized at a rate of 1,500-3,200 yuan/gross ton according to different ship types; New energy and clean energy ships will be subsidized at 1,000-2,200 yuan/gross tonnage according to different ship types; If only the old operating ships are scrapped in advance, the average subsidy will be 1,000 yuan/gross tonnage.

(3) Support the scrapping and renewal of old operating trucks. Support the scrapping of diesel trucks operating with emission standards of China III and below, and accelerate the replacement of low-emission trucks. scrap and renew the purchase of eligible trucks, with an average subsidy of 80,000 yuan per vehicle; The average subsidy per vehicle is 35,000 yuan, and the average subsidy per vehicle is 30,000 yuan for the early scrapping of old diesel trucks.

(4) Increase the subsidy standard for scrapping and updating agricultural machinery. Focus on ensuring the stable and safe supply of grain and important agricultural products, improve the enthusiasm of farmers and agricultural production and operation organizations to scrap and update old agricultural machinery, and on the basis of the "Notice on Increasing Work Efforts and Continuing to Implement the Subsidy Policy for the Scrapping and Renewal of Agricultural Machinery" (Nongban Machinery [2024] No. 4), scrap tractors below 20 horsepower, and increase the maximum scrapping subsidy for a single unit from 1,000 yuan to 1,500 yuan; Scrap combine harvesters, seeders, etc. and purchase new machinery of the same type, on the basis of the current subsidy standard, increase the scrapping subsidy standard by no more than 50%; Scrap and update the purchase of cotton pickers, and the maximum scrapping subsidy for a single unit is increased from 30,000 yuan to 60,000 yuan. Each region can determine the new agricultural machinery types into the scope of subsidies according to the actual situation, and determine the subsidy standards according to the existing regulations.

(5) Increase the subsidy standards for new energy buses and power battery updates. Promote the electrification of urban buses, and support the renewal of new energy buses and power batteries. The average subsidy per vehicle is 60,000 yuan per vehicle for new energy buses and power batteries that are 8 years old and above.

(6) Increase the proportion of financial discount for equipment renewal loans. Give full play to the role of re-lending policy tools to guide financial institutions to support equipment renewal and technological transformation. For the principal of bank loans for business entities that meet the conditions of the "Notice on Implementing the Financial Interest Discount Policy for Equipment Renewal Loans" (Cai Jin [2024] No. 54), the central government will increase the interest discount from 1 percentage point to 1.5 percentage points, with an interest discount period of 2 years and a total scale of 20 billion yuan.

• Afterburner supports the trade-in of consumer goods

(7) Support local governments to improve their ability to trade in consumer goods. Directly arrange ultra-long-term special treasury bond funds to support local governments to independently improve the ability of consumer goods to be traded. The National Development and Reform Commission and the Ministry of Commerce and Finance shall reasonably determine the scale of support funds for each region by taking into account factors such as the permanent resident population, regional GDP, and the number of automobiles and household appliances in each region. All regions should focus on supporting the scrapping and renewal of automobiles and the replacement of passenger cars for individual consumers, the trade-in of household appliances and electric bicycles, the partial transformation of old houses, kitchens and bathrooms, and the purchase of items and materials used in the transformation of homes for the elderly, so as to promote smart home consumption.

(8) Raise the subsidy standard for scrapping and renewal of automobiles. On the basis of the "Implementation Rules for Automobile Trade-in Subsidy" (Shang Ji Han [2024] No. 75), individual consumers scrap fuel passenger cars with emission standards of China III and below or new energy passenger vehicles registered before April 30, 2018 (including that date), and purchase new energy passenger vehicles or fuel passenger vehicles with a displacement of 2.0 liters and below that are included in the "Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax", and the subsidy standard is increased to 20,000 yuan for the purchase of new energy passenger vehicles. The purchase of 2.0 liters and below displacement fuel passenger cars will be subsidized by 15,000 yuan. Consumers who apply for subsidies from the date of issuance of the "Detailed Rules for the Implementation of Car Trade-in Subsidy" shall be subsidized in accordance with the standards of this notice. Consumers apply for subsidies according to the standards of this notice, and the corresponding scrapped motor vehicles must be registered in their names before the date of issuance of this notice.

(9) Support the trade-in of household appliances. Trade-in subsidies will be given to individual consumers who purchase 8 types of household appliances such as refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household stoves, and range hoods with energy efficiency or water efficiency standards of level 2 or above. The subsidy standard is 15% of the sales price of the product, and an additional 5% subsidy will be given to the purchase of products with energy efficiency or water efficiency standards of level 1 and above. Each consumer can subsidize 1 piece of each type of product, and the subsidy for each piece does not exceed 2,000 yuan. The Ministry of Commerce guides all regions to do a good job of connecting preferential policies in light of actual conditions to ensure a smooth and orderly transition of policies.

(10) Implement the financial support policy for the recycling and disposal of waste electrical and electronic products. In 2024, the central government will allocate 7.5 billion yuan to continue to support the recycling and treatment of waste electrical and electronic products in the form of "substitution of awards and subsidies" to promote the healthy development of the industry. By the end of 2023, if waste electrical and electronic products are recycled and disposed of in accordance with the provisions of the waste electrical and electronic product disposal fund subsidy but have not yet been subsidized, they will be supported in installments after verification and approval by the Ministry of Ecology and Environment.

Source: National Development and Reform Commission, Chinese government website

Editor: Liu Jinxu

Editor-in-chief: Jiang Zhe

Supervisor: Diao Yan Guo Yue

Producer: Kang Jian, Chen Jingwen

Director: Zhang Xiaoqi