On July 25, the National Development and Reform Commission (NDRC) and the Ministry of Finance (MOF) issued a circular on Several Measures on Strengthening Support for Large-Scale Equipment Renewal and Consumer Goods Replacement.
According to the notice, optimize the way to support the equipment renewal project. Arrangement of ultra-long-term special national debt large-scale equipment renewal special funds to increase support for equipment renewal. On the basis of equipment renewal and recovery and recycling in the fields of industry, environmental infrastructure, transportation, logistics, education, culture and tourism, and medical care, the scope of support will be expanded to include the renewal of equipment in the fields of energy and power, old elevators, and energy conservation, carbon reduction, and safety renovation in key industries, and will be dynamically adjusted in the light of the actual situation.
Increasing the subsidy standard for new energy buses and power battery renewal. Promote the electrification of urban buses and support the renewal of new energy buses and power batteries. Renewal of new energy buses and power batteries that are eight years old or older will be subsidized by an average of 60,000 yuan per vehicle.
See below for full text:
Circular of the National Development and Reform Commission of the Ministry of Finance on the Issuance of Several Measures to Increase Support for Large-Scale Equipment Replacement and Consumer Goods Trade-in
Development, Reform and Environment [2024] 1104
People's governments of provinces, autonomous regions and municipalities directly under the Central Government, and the ministries and commissions of the State Council, as well as organizations directly under the Central Government:
Several Measures on Strengthening Support for Large-scale Equipment Renewal and Consumer Goods Replacement have been agreed by the State Council. It is hereby issued to you, please implement it seriously.
PRC National Development and Reform Commission
Ministry of Finance
July 24, 2024
Some measures to enhance support for large-scale equipment replacement and trade-in of consumer goods
In order to fully implement the spirit of the 20th CPC National Congress and the 2nd and 3rd Plenary Sessions of the 20th CPC Central Committee and the 3rd CPC Central Committee, conscientiously implement the decision-making and deployment of the CPC Central Committee and the State Council, and in accordance with the "Action Program for Promoting Large-Scale Equipment Renewal and Consumer Goods Replacement by Old and New Products" (No. 7 of the State Council [2024]), we hereby propose the following measures for the coordinated arrangement of about 300 billion yuan of ultra-long-term special state bond funds to strengthen support for large-scale equipment renewal and consumer goods replacement by old and new products.
I. Increased support for equipment renewal
(i) Optimizing the way equipment renewal projects are supported. Arranging ultra-long-term special national bonds for large-scale equipment renewal special funds to increase support for equipment renewal. On the basis of equipment renewal and recovery and recycling in the fields of industry, environmental infrastructure, transportation, logistics, education, culture and tourism, and medical care, the scope of support will be expanded to include equipment renewal in the fields of energy and electric power, old elevators, and energy-saving, carbon-reducing, and safety renovation in key industries, and will be dynamically adjusted in light of the actual situation. Considering the characteristics of different fields, the threshold for declaration of ultra-long-term special national bond funds will be lowered, and the requirement of "total project investment of not less than 100 million yuan" will no longer be set, 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 declaration and approval process and effectively improving efficiency.
(ii) Supporting the scrapping and modernization of old operating vessels. Accelerate the scrapping and renewal of old ships with high energy consumption and high emissions, and promote the development of new and clean energy ships. Support for inland waterway passenger ships more than 10 years, cargo ships more than 15 years, as well as coastal passenger ships more than 15 years, cargo ships more than 20 years old old old ships scrapped and renewed. If a ship is renewed as a fuel-powered ship or a new energy clean energy ship on the basis of scrapping, it will be subsidized at RMB 1,500-3,200/gross tonne according to different types of ships; if a new energy clean energy ship is built, it will be subsidized at RMB 1,000-2,200/gross tonne according to different types of ships; and if an old operating ship is scrapped early, it will be subsidized at an average rate of RMB 1,000/gross tonne. If only old operating ships are scrapped early, the average subsidy will be RMB 1,000/gross ton.
(c) Supporting the scrapping and modernization of old trucks. Supporting the scrapping of diesel trucks of the National III and below emission standards, and accelerating the renewal of low-emission trucks. The average subsidy per vehicle is 80,000 yuan for the scrapping and renewal of eligible trucks; the average subsidy per vehicle is 35,000 yuan for the scrapping and renewal of eligible trucks; and the average subsidy per vehicle is 30,000 yuan for the early scrapping of old diesel trucks.
(d) Raising the subsidy standard for the scrapping and renewal of agricultural machinery. Focusing on guaranteeing a stable and safe supply of food and important agricultural products, and improving the enthusiasm of farmers and agricultural production and management organizations to scrap and renew old agricultural machinery, on the basis of the Notice on Increasing Efforts to Continuously Implement a Good Subsidy Policy for the Scrapping and Renewal of Agricultural Machinery (Agricultural Office of the Ministry of Agriculture, Machine 〔2024〕 No. 4), the maximum amount of the scrap subsidy for the scrapping of a tractor of less than 20 hp was increased from 1,000 to 1,500 yuan for a single scrapping subsidy; Scrapping combine harvesters, planters, etc. and new acquisition of the same type of machinery, on the basis of the current subsidy standards, according to no more than 50% to increase the scrapping subsidy standards; scrapping and updating the acquisition of cotton pickers, the maximum amount of scrap subsidies for a single unit increased from 30,000 yuan to 60,000 yuan. Each region can determine the practicality of no more than six new types of agricultural machinery into the scope of the subsidy, and according to the existing provisions of the calculation to determine the subsidy standard.
(v) Increasing the subsidy standard for new energy buses and power battery renewal. Promote the electrification of urban buses to replace, support new energy buses and power battery renewal. Renewal of new energy buses and power batteries that are eight years old or older, with an average subsidy of 60,000 yuan per vehicle.
(vi) Increasing the proportion of financial subsidies for equipment renewal loans. Give play to the role of refinancing policy tools to guide financial institutions to support equipment renewal and technological transformation. To meet the "on the implementation of equipment renewal loan financial subsidy policy notice" (Caijin [2024] No. 54) conditions of the main business of the bank loan principal, the central financial subsidy from 1 percentage points to 1.5 percentage points, the subsidy period of 2 years, the total size of the subsidized interest rate of 20 billion yuan.
II. Strengthening support for the trade-in of consumer goods
(vii) Supporting localities in upgrading their capacity to trade in old consumer goods for new ones. Directly arranging ultra-long-term special national bond funds to support localities to independently enhance the capacity of consumer goods trade-in. The National Development and Reform Commission and the Ministry of Finance will synthesize factors such as the resident population of each region, regional GDP, and the number of automobiles and home appliances owned, and will reasonably determine the scale of support funds for each region. Each region should focus on supporting the replacement of automobiles at the end of their lives and the replacement of passenger cars by individual consumers, the replacement of home appliances and electric bicycles, the renovation of old houses, the partial renovation of kitchens and bathrooms, the purchase of goods and materials used in the ageing of the home, and the promotion of the consumption of smart homes, among other things.
(viii) Increasing the subsidy standard for automobile scrapping and renewal. On the basis of the Implementing Rules for Automobile Trade-in Subsidies (Commercial Consumption Letter [2024] No. 75), individual consumers scrapping fuel passenger cars with National III or lower emission standards or new energy passenger cars registered before April 30, 2018 (including that day), and purchasing new energy passenger cars or fuel passenger cars with 2.0 liters or less displacement that are included in the Catalogue of New Energy Vehicle Models with Reduced or Exempted Vehicle Purchase Taxes The subsidy standard has been raised to RMB 20,000 for the purchase of new energy passenger cars and RMB 15,000 for the purchase of fuel passenger cars with a displacement of 2.0 liters or less. Consumers applying for subsidies since the date of issuance of the Implementing Rules for Automobile Trade-in Subsidies will be subsidized in accordance with the standards in this notice. Consumers applying for subsidies in accordance with the standards in this Notice shall have the corresponding scrapped motor vehicles registered in their names by the date of issuance of this Notice.
(ix) Supporting the trade-in of home appliances. Subsidies are given to individual consumers for the purchase of 8 types of home 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 for trade-in. The subsidy standard is 15% of the sales price of the product, and an additional subsidy of 5% of the sales price of the product will be given for the purchase of products with energy efficiency or water efficiency standards of Grade 1 and above. Each consumer can subsidize 1 piece of each type of product, and each piece of subsidy does not exceed 2,000 yuan. The Ministry of Commerce guided the regions to do a good job of convergence of preferential policies in light of the actual situation, to ensure a smooth and orderly transition of policies.
(j) the implementation of waste electrical and electronic products recycling and treatment of financial support policies. 2024 central financial arrangements for 7.5 billion yuan, to take "awards instead of subsidies" to continue to support the recovery and treatment of waste electrical and electronic products, to promote the healthy development of the industry. By the end of 2023, in accordance with the waste electrical and electronic products treatment fund subsidies and other provisions of the recycling and treatment of waste electrical and electronic products, but not yet subsidized by the Ministry of Ecology and Environment verified and approved by the phases of the actual support.
III. Strengthening organizational implementation
(k) Clear funding channels. The National Development and Reform Commission will take the lead in arranging about 148 billion yuan of special ultra-long-term special national bond funds for large-scale equipment renewal, to be used to implement the support policies set out in articles (a) and (b) of this Circular; and in arranging about 150 billion yuan of ultra-long-term special national bond funds directly to localities to be used to implement the support policies set out in articles (c), (d), (e), (g), (h) and (ix). The Ministry of Finance will arrange for 27.5 billion yuan of central financial resources through the original channels for the implementation of the support policies listed in Articles (6) and (10). Article (3), (5), (7), (8), (9) of the support funds involved in accordance with the overall 9:1 principle of the implementation of the central government to share, the eastern, central and western regions of the central government to bear the proportion of 85%, 90%, 95%, respectively. provincial-level finances in accordance with the allocation of the central funds to arrange for the proportion of matching funds. All regions should strictly implement the relevant areas of support standards specified in this notice, other areas of support standards by the regions in conjunction with the actual rational development, to ensure that the investment of funds in line with the policy requirements, to ensure that the real money concessions directly to the consumer. If a region exhausts the amount of funds issued by the central government, the excess will be supported by the region through local funds, and the central government will not bear the burden anymore. The amount of centrally-delivered funds not used up by December 31, 2024 will be returned to the central government.
(xii) Strengthening organizational leadership. The National Development and Reform Commission and the Ministry of Finance have co-ordinated the arrangement of ultra-long-term special government bond funds and central financial funds to support large-scale equipment renewal and consumer goods trade-in, and have formulated relevant implementation plans and management methods in conjunction with the relevant departments, clarified the work requirements, consolidated the responsibilities of all parties, and refined the operational procedures. The Ministry of Transport, the Ministry of Agriculture and Rural Development, the Ministry of Commerce, etc., according to the division of responsibilities to refine the relevant areas of subsidy standards and implementation rules, and organize the implementation of the old operating vehicle and ship renewal, new energy buses and power battery renewal, agricultural machinery scrapping and renewal, automobile scrapping and renewal and individual consumer passenger car replacement and renewal, home appliances to replace the old with the new, and other support policies. The people's governments at the provincial level should formulate implementation plans and special management methods, clarify the division of tasks, refine the implementation of initiatives, strengthen coordination and promotion, give full play to creativity, and promote additional support for the renewal of large-scale equipment and consumer goods trade-in policies to achieve results.
(xiii) Strengthening project and fund management. The relevant departments, in accordance with their division of responsibilities, have strengthened local supervision and guidance, coordinated online monitoring and early-warning and offline on-site verification, and promptly alerted and urged rectification of problems such as untimely allocation of funds, delayed utilization, and misappropriation and misappropriation of funds. Provincial people's governments are the first responsible body for project and fund management, and should strictly manage the ultra-long-term special national bond funds, which shall not be used to balance local budgets, repay local government debts, local "three guarantees", and shall not raise matching funds through debt. Local development and reform departments should play a comprehensive coordinating role, and take the lead in project organization and fund allocation. Local financial departments should cooperate with local development and reform and industry authorities to scientifically and reasonably formulate funding measurement programs, grasp the pace of efforts, reasonably allocate funds, do a good job of monitoring and early warning, strengthen supervision and verification, and effectively improve the effectiveness of the use of funds. For those who do not meet the above requirements and violate financial discipline, funds should be withdrawn in a timely manner, and the relevant responsible persons should be seriously held accountable.
(xiv) Create a favorable market environment. All regions should support enterprises of different ownership systems and places of registration to participate in large-scale equipment renewal and consumer goods trade-in without discrimination. Market supervision departments should follow up in a timely manner to strengthen product quality and price supervision, strengthen product quality supervision and sampling, increase defect investigation and recall efforts, urge enterprises to implement the main responsibility for quality and safety, strictly investigate and deal with price fraud and other acts, vigorously safeguard the legitimate rights and interests of consumers. On the discovery of the existence of the use of improper means to fraudulently obtain subsidies and other illegal acts, the regions should be seriously dealt with in accordance with the law, suspected of committing a crime is transferred to the judicial authorities in accordance with the law to be severely investigated and dealt with.
(xv) Timely follow-up. The Ministry of Transport, the Ministry of Agriculture and Rural Development, the Ministry of Commerce and other departments and provincial people's governments shall carry out self-assessment and self-inspection of work promotion, project implementation, fund utilization and performance target achievement, and promptly report the use of funds and the achievement of performance targets to the National Development and Reform Commission and the Ministry of Finance. The National Development and Reform Commission, in consultation with the Ministry of Finance, will summarize and form a performance assessment report, and will take the results of the assessment as an important basis for the subsequent optimization of funding arrangements.
(p) Strengthening publicity and guidance. All relevant departments in all regions should, through government websites, government new media, government service platforms and other timely release of large-scale equipment renewal and consumer goods trade-in information, strengthen the interpretation of policies, respond to social concerns, guide the active participation of all sectors of society, and vigorously create a favorable social atmosphere. Summarize and promote advanced experience and typical practices in due course. Encourage regions and industry associations to strengthen supply and demand docking, and promote the exchange and promotion of advanced products and models.
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