Incentives and Legislation | European Alternative Fuels Observatory

The incentives and legislations section is updated for beginning of 2024, as of 23rd April 2024.

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.

If you know of other national or local incentives that should be included in this section, please send us an email, or use the button on the right, and let us know.

Ownership tax benefits

Low annual road taks (SEK 360) for zero-emission vehicles and PHEVs

Company tax benefits

In Sweden, where cars are not subject to registration taxes, the application of this approach would favour ICE over electric cars, given their comparatively lower purchase price. The Swedish legislation allows reducing the value of the benefit represented by the private use of company cars if they are electric*, and therefore reduces the amount of income taxes that needs to be paid on it. Thanks to this, the monthly cost of leasing an electric car is lower than that of an equivalent ICE for the employee, even if the car is still more expensive for the company (Wikström, 2018). In Sweden, this measure, combined with complementary activities to stimulate response from corporate social responsibility programmes, proved to be effective in stimulating the adoption ofelectric cars. In November 2017, company cars accounted for approximately 70% of the new electric car sales (Wikström, 2018).

Since July 2021, luxury car supplement is removed, company cars costs more than 650.000 SEK (63.000 EUR) will be cheaprt to operate.

Purchase subsidies

Sweden has introduced a new subsidy from 13th February 2024 for light electric commercial vehicles, termed the 'climate premium' (Klimatpremie), targeting companies, municipalities, and regions.

As of 8th Novermber 2022 the Climate bonus is no longer available, there is no purchase subsidy available for electric cars registered after this date. This used to be:

"Climate bonus" (Klimatbonus). This means that cars and light trucks/buses newly registered from 1 July 2018 having a CO2 emission of maximum 60g/km (NEDC value) received a bonus of up to SEK 60,000 (BEVs), depending on the CO2 emission. From 1 January 2020 the CO2 limit for new registrations to receive a climate bonus has been increased to 70g/km measured according to WLTP. CNG cars and light trucks/buses will receive a bonus of SEK 10,000 independent of the CO2 emission. For electrical vehicles (BEV) with zero CO2 emission the bonus is SEK 60,000 and plug-in hybrids (PHEV) with CO2-emission of 70g/km receive a bonus of SEK 10,020. The climate bonus must not exceed 25% of the new car price.

On 1 April 2021, the maximum bonus amount for the purchase of an electric car or hydrogen car will change from SEK 60,000 to SEK 70,000.At the same time, the limit for climate bonus is lowered from 70 to 60 grams. The bonus amount for a car that emits 1 gram of carbon dioxide amounts to SEK 45,000. Thereafter, the bonus is reduced by SEK 583 per gram up to the breaking limit of 60 grams, which gives a bonus of SEK 10,000.

From 1 April 2021, the limit will also be lowered for when an increased vehicle tax is levied from 95 g / km to 90 g / km. Vehicles that emit 90-130 g / km receive a vehicle tax of SEK 107 / km and then SEK 132 / g for the emission that exceeds 130 grams. Vehicles that emit 60-90 g / km do not receive a bonus or suffer a higher tax. 2021

Electric buses and trucks: Public transportation authorities buying new electric buses can receive a premium of maximum 20% of the purchase price of the electric bus. The premium must not be higher than the difference in price of the electric bus and that of the corresponding diesel bus. Plug- in hybrid buses receive half of the premium amount. Private companies buying new electric buses can receive a premium of 40% on the difference between the price of the electric bus and corresponding diesel bus. Buyers of new electric trucks will also be eligible to receive a premium. The details for this premium have not yet been decided upon (February 2020)

Other financial benefits

Reduction in company car taxation: for electric and plug-in hybrid vehicles, the taxable value of the car for the purposes of calculating the benefit in kind of a company car under personal income tax is reduced in two steps. Firstly, the benefit value is reduced to the benefit value of a comparable petrol or diesel car. Secondly the calculated benefit value is reduced by 40% (maximum SEK 10,000). The first reduction is permanent and not time limited. The second step with a 40% reduction is valid up to and including 2020, unless there will be a political decision to prolong it.

BEVs pay lowest amount of road tax, appx. € 32.

Local incentives

Municipalities around the country will introduce environmental zones in three different steps from 2020.

AF infrastructure incentives

Projects from Klimatklivet assigned to EVSE for 2018-20 (Wikström, 2018). For 2018-20, additional SEK 700 million (EUR 67 million) have been assigned and the budget proposal for 2018 includes provisions to increase this amount. Implementation of support scheme for private charging (Government of Sweden, 2017c). Between 2018 and now, SEK 90 million (EUR 8,7 million) will be annually allocated to support home chargers with up to 50 % or SEK 10 000 (EUR 960) for hardware and installation costs.

Interesting links

ed policy changes (effective later in 2024 and after)

Replacement of the super green car rebate in 2018 by a cost neutral bonus-malus scheme. Bonus for low emissions cars (< 60 gCO₂/km) to be set at SEK 10 000 (EUR 960) and bonus for zero emission cars to be set at SEK 60 000 (EUR 5.800). The malus will take the form of a higher circulation tax, instead of a higher purchase tax.(Government of Sweden, 2017b).

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Inform about incentive

The incentives and legislations section is updated for beginning of 2024, as of 23rd April 2024.

Incentives and legislation that aim to increase uptake of alternative fuels vehicles and infrastructure.

If you know of other national or local incentives that should be included in this section, please send us an email, or use the button on the right, and let us know.