Two departments: Support for vehicle scrapping and updating in 2026, support for vehicle replacement and updating

Notice from the National Development and Reform Commission and the Ministry of Finance on the Implementation of Large-Scale Equipment Renewal and Consumer Goods Trade-In Policy in 2026 Governments of provinces, autonomous regions, and municipalities directly under the central government, ministries and commissions of the State Council, and affiliated institutions: In order to fully implement the spirit of the 20th National Congress of the Communist Party of China and the successive plenary sessions of the 20th Central Committee, and to earnestly carry out the deployment of the Central Economic Work Conference, according to the "Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Trade-In" (Guo Fa [2024] No. 7), and with the approval of the State Council, the following notice is hereby issued regarding the implementation of large-scale equipment renewal and consumer goods trade-in policy in 2026. I. Promote Large-Scale Equipment Renewal (1) Support for Equipment Renewal Projects. On the basis of continuing to support equipment renewal projects in industries such as manufacturing, electronic information, energy and power, transportation, logistics, education, cultural tourism, healthcare, facility agriculture, grain and oil processing, safety production, customs inspection, old residential elevators, and energy conservation and carbon reduction, the installation of elevators in old communities, equipment renewal in elderly care institutions, fire rescue facilities, and inspection and testing will be included in the support scope to better meet the needs of people's livelihood and safety. Support will also be provided for the equipment renewal of offline consumer commercial facilities such as commercial complexes, shopping centers, department stores, and large supermarkets. The application conditions and review processes will be optimized, further lowering the investment threshold for applying for equipment renewal projects, increasing support for small and medium-sized enterprises in equipment renewal, and expanding the coverage of the policy. (2) Support for the Scrapping and Renewal of Old Operating Trucks. Continue to support the scrapping of operating trucks that meet the National IV emission standards and below to be replaced with low-emission trucks, with a priority for replacing them with electric trucks. The subsidy standards will be implemented according to the "Notice on the Implementation of the Scrapping and Renewal of Old Operating Trucks" (Jiao Gui Hua Fa [2025] No. 17). (3) Support for the Renewal of New Energy City Buses. Promote the electrification of city buses, continue to support the renewal of new energy city buses and power batteries, with subsidy standards implemented according to the "Implementation Rules for Subsidies for New Energy City Buses and Power Batteries in 2025" (Jiao Ban Yun [2025] No. 4). (4) Support for the Scrapping and Renewal of Old Agricultural Machinery. Continue to support the scrapping and renewal of old agricultural machinery, with the scope and standards of subsidies implemented according to the "Notice on the Implementation of the 2025 Agricultural Machinery Scrapping and Renewal Subsidy Policy" (Nong Ban Ji [2025] No. 3). Regions may optimize and adjust the 12 types of agricultural machinery eligible for scrapping and renewal subsidies based on agricultural production needs and the level of agricultural mechanization development. (5) Strengthen Full-Chain Management of Projects and Funds. Strengthen the full-chain management of project reserves, applications, reviews, approvals, implementations, and fund payments and usage. Refine and improve the support conditions and review standards for projects in various fields, further strengthen review controls, and continuously improve project quality. Based on the average depreciation years of equipment in different industries, technological update cycles, and other factors, refine and improve the minimum usage years and technical indicators for obsolete equipment in various fields, making equipment depreciation and minimum usage years hard conditions for project applications. Strictly enforce equipment elimination and scrapping disposal, standardize asset management, and avoid resource waste. II. Implement Consumer Goods Trade-In Policy (6) Optimize fund allocation. Comprehensive assessment of local work effectiveness based on factors such as the number of permanent residents in various regions, regional GDP, ownership of automobiles and home appliances, as well as the implementation of the old-for-new policy for consumer goods and issues identified in audits, to reasonably determine the scale of fund allocation in various places. Focus on subsidizing categories that cover a wider population and have a stronger driving effect, emphasizing the promotion of green, low-carbon, and intelligent products. (7) Support for automobile scrapping and updating. Individual consumers who scrap passenger cars registered in their name and purchase new energy passenger cars included in the "Catalog of New Energy Vehicles Exempt from Vehicle Purchase Tax" or fuel passenger cars with a displacement of 2.0 liters or below will receive subsidies for automobile scrapping and updating, with a subsidy of 12% of the purchase price for new energy passenger cars (up to a maximum of 20,000 yuan) and 10% of the purchase price for fuel passenger cars with a displacement of 2.0 liters or below (up to a maximum of 15,000 yuan). (8) Support for automobile replacement and updating. Individual consumers who transfer passenger cars registered in their name and purchase new energy passenger cars included in the "Catalog of New Energy Vehicles Exempt from Vehicle Purchase Tax" or fuel passenger cars with a displacement of 2.0 liters or below will receive subsidies for automobile replacement and updating, with a subsidy of 8% of the purchase price for new energy passenger cars (up to a maximum of 15,000 yuan) and 6% of the purchase price for fuel passenger cars with a displacement of 2.0 liters or below (up to a maximum of 13,000 yuan). (9) Support for old-for-new home appliances. Individual consumers who purchase products with a 1st-level energy efficiency or water efficiency standard from six categories of home appliances, including refrigerators, washing machines, televisions, air conditioners, computers, and water heaters, will receive a subsidy of 15% of the product sales price, with each consumer eligible for one subsidy per product category, and each subsidy not exceeding 1,500 yuan. (10) Support for purchasing new digital and smart products. Individual consumers who purchase mobile phones, tablets, smart watches and bands, smart glasses, and other products (with a single sales price not exceeding 6,000 yuan) will receive a subsidy of 15% of the product sales price, with each consumer eligible for one subsidy per product category, and each subsidy not exceeding 500 yuan. Support for subsidies for purchasing new smart home products (including products for the elderly) will be determined by local authorities based on actual conditions. (11) Improve implementation systems. In accordance with the requirements for building a unified national market, this notice clarifies that the subsidies for automobile scrapping and updating, automobile replacement and updating, the old-for-new policy for six categories of home appliances, and the purchase of four categories of digital and smart products will be uniformly implemented nationwide. Localities should unify and standardize the management system for the old-for-new policy for consumer goods, improve the management of the list of participating business entities, product sales price filing, subsidy qualification issuance, fund review and payment, and other full-chain implementation details. Establish a pre-allocation system for subsidy funds, based on the implementation of budget arrangements, to pre-allocate part of the subsidy funds to corresponding enterprises or payment platforms according to the sales and financing situation of enterprises, alleviating the financial pressure on enterprises. Fully leverage the advantages of different sales channels, support offline physical retail; increase offline business entities in rural areas, and guide online channels to tilt towards rural areas to improve the convenience of consumption in rural areas III. Smooth Recycling and Circular Economy Network (12) Improve the recycling network for waste equipment and consumer goods. Enhance the three-tier recycling system of recycling points, transfer stations, and sorting centers for renewable resources, and facilitate the channels for the sale and purchase of waste equipment and consumer goods. Support China Resources Recycling Group Co., Ltd. in accelerating the construction of a national, functional resource recycling and reuse platform. Support the supply and marketing cooperative system in establishing a recycling network that covers grassroots levels below the county. Guide "Internet + Recycling" enterprises to expand categories and enhance the recycling capacity of waste equipment and consumer goods. (13) Regulate the trading of second-hand goods and the remanufacturing of waste equipment. Encourage the development of the "Internet + Second-hand" model. Support qualified regions in building centralized and standardized second-hand goods trading markets. Improve management systems for second-hand transactions, evaluation, and identification. Enhance the level of the remanufacturing industry for waste electromechanical equipment, automotive parts, etc., ensuring that the quality characteristics and safety and environmental performance of remanufactured products are not lower than those of new prototypes. (14) Expand the resource recycling industry. Allocate funds from ultra-long-term special government bonds to support high-level resource recycling project construction. Strengthen technological breakthroughs in major equipment for resource recycling. Promote the application of recycled materials. Enhance supervision of scrapping and recycling enterprises, improving the standardization level of waste equipment recycling. Strengthen ecological and environmental law enforcement supervision, severely crack down on environmental violations in the recycling and dismantling process. Continuously promote the implementation of the "reverse invoicing" system for resource recycling enterprises selling scrapped products to individuals and strengthen supervision. IV. Leverage Standards to Enhance Driving Force (15) Accelerate the improvement of the standard system. Benchmark against international advanced levels, enhance energy-saving and carbon reduction standards and pollutant emission standards in key industries, and strictly implement pollution control technical specifications for the disposal of waste electrical and electronic products. Strengthen the application of energy efficiency and water efficiency standards for consumer goods such as home appliances and electronics. (16) Strengthen supervision of standard implementation. Strictly enforce mandatory scrapping standards for motor vehicles and vehicle safety and environmental inspection standards, and legally eliminate old vehicles that meet mandatory scrapping standards. Encourage timely scrapping of home appliance products that reach the recommended service life. Strengthen quality supervision and random inspections of key consumer goods such as home appliances and new energy vehicles, and severely crack down on behaviors such as counterfeiting, inferior substitutes, old-for-new exchanges, impersonating qualified products, and forging or misusing energy efficiency and water efficiency labels. V. Strengthen Organizational Implementation (17) Strengthen organizational leadership. The National Development and Reform Commission (NDRC) will play the role of the leading department in the "Two New" inter-ministerial joint meeting system, working with the Ministry of Finance to arrange ultra-long-term special government bond funds to implement the "Two New" policies, enhancing overall coordination and tracking. The Ministry of Commerce, Ministry of Transport, Ministry of Agriculture and Rural Affairs, and other departments will formulate implementation details by sector according to their responsibilities and organize localities to implement relevant policies effectively. Provincial-level people's governments should organize and implement according to actual conditions, solidify responsibilities, grasp the work rhythm, strengthen coordination and promotion, and continuously enhance the effectiveness of the "Two New" policies. (18) Clarify funding channels. The NDRC, in conjunction with relevant departments, will arrange ultra-long-term special government bond funds to support equipment updates, used to implement the support policies listed in this notice's sections (1), (2), (3), (4), and (14); directly allocate ultra-long-term special government bond funds to localities to support the replacement of consumer goods, used to implement the support policies listed in this notice's sections (7), (8), (9), and (10) The overall funding for the replacement of old consumer goods with new ones arranged by local governments will be implemented according to the principle of 9:1, with the central government bearing 85%, 90%, and 95% of the costs in the eastern, central, and western regions, respectively. Provincial finances will allocate matching funds based on the distribution of central funds, and the funding-sharing method below the provincial level will be determined by provincial finances. If a region exhausts the central allocation for the replacement of old consumer goods, the excess will be supported by local funds, and the central government will no longer bear the costs. For regions with significant amounts of unpaid subsidy funds, appropriate measures will be taken to increase supervision or penalties. Any unspent central allocation for the replacement of consumer goods will be reclaimed by the central government by December 31, 2026. (19) Standardize fund usage. The National Development and Reform Commission and the Ministry of Finance will reasonably control the pace and allocate special long-term bonds to support the replacement of consumer goods to local governments in quarterly batches. Local governments should reasonably formulate balanced fund usage plans by sector and implement the replacement policy for consumer goods in a stable and orderly manner. The special long-term bonds allocated by the central government for the replacement of consumer goods will be used to implement the subsidy policies specified in this notice. Local governments will be given more autonomy; matching funds allocated by local governments for implementing the automobile scrapping and replacement, automobile trade-in, replacement of six categories of home appliances, and purchase of four categories of digital and smart products must align with the standards and implementation methods outlined in this notice. For subsidies related to the purchase of smart home products (including products for the elderly), local governments can independently and reasonably formulate specific subsidy categories and standards based on actual conditions. Additionally, local governments can autonomously and reasonably determine subsidy categories, standards, and implementation methods within the framework of the replacement policy for consumer goods, encouraging priority support for products with high energy efficiency, water efficiency, and environmental protection levels. All regions must complete the settlement of subsidy funds for the replacement of consumer goods by 2025 in a timely manner and ensure smooth transitions and orderly connections of related support policies across fiscal years. (20) Strengthen supervision and management. Relevant departments should strengthen full-chain supervision of equipment renewal projects and fund usage according to their responsibilities, coordinating online monitoring and early warning with offline inspections to prevent issues such as untimely fund allocation, slow usage, and misappropriation. Provincial governments are the primary responsible entities for project and fund management and must strictly manage special long-term bond funds, conduct regular scheduling and on-site evaluations of equipment renewal projects, and strengthen supervision of funds for the replacement of consumer goods. They must strictly implement the centralized treasury payment system, adhere to the bottom line of fund usage, and avoid fictitious expenditures, inflated expenditures, or using allocations as expenditures, to prevent fund stagnation and idleness. Local governments should enhance inter-departmental data connectivity and sharing, based on the subsidy data platforms established by the central and local governments, to create data-sharing channels among commerce, transportation, agriculture and rural affairs, finance, public security, taxation, and industry and information technology departments, achieving comparison and cross-verification of key data such as subsidy eligibility, new energy vehicle model information, vehicle registration information, invoice information, logistics information, and fiscal expenditure information. For those who do not meet the above requirements or violate financial discipline, funds will be reclaimed in a timely manner, and relevant personnel will be held accountable according to laws and regulations (21) Create a fair participation environment. All regions should treat online and offline business entities equally, as well as entities of different ownership types, registration locations, and scales participating in large-scale equipment updates and consumer goods trade-ins. Serious handling of fraudulent subsidy claims, "first raise then subsidize" and other illegal activities in accordance with the law, and transfer cases suspected of criminal activity to judicial authorities for severe investigation and handling. (22) Timely tracking and evaluation. The National Development and Reform Commission, in conjunction with relevant departments, will strengthen the evaluation and guidance of the implementation of the "two new" policies in various regions and fields, supervise the implementation of key tasks, and promptly identify problems and respond quickly to resolve them. Provincial-level people's governments should conduct self-evaluation and self-inspection on policy implementation, project execution, fund utilization, and performance target achievement, and timely report to the National Development and Reform Commission and the Ministry of Finance, while copying relevant information to the Ministry of Transport, Ministry of Agriculture and Rural Affairs, Ministry of Commerce, and other departments. The National Development and Reform Commission will summarize the performance evaluation report with the Ministry of Finance, and the evaluation results will serve as an important basis for subsequent optimization of fund arrangements. (23) Build social consensus. All regions and relevant departments should strengthen the publicity and interpretation of the "two new" policies. Fully utilize consumer rights hotlines and official platform supervision and complaint functions to respond promptly to social concerns. Through provincial-level government platforms or third-party platforms entrusted and filed by provincial governments, regularly summarize and publish information on subsidy usage, handling of violations, etc., to enhance the transparency of policy implementation and create a good social atmosphere. Risk Warning and Disclaimer The market has risks, and investment should be cautious. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at their own risk