The Czech Republic will provide substantial subsidies to entrepreneurs for the purchase of electric vehicles in 2024

In 2020, the Czech Republic committed to achieving net-zero greenhouse gas emissions by 2050, and a number of subsidy programs were implemented to help achieve this target. Among these is an electric car subsidy for businesses and individuals (self-employed), which they can take advantage of this year and next. The subsidy starts at 200,000 Czech crowns (about 8,000 euros) and goes progressively. What are the conditions for receiving it? Where and how may one apply for help purchasing an electric vehicle or charging station?

As part of the National Recovery Plan, 1.65 billion Czech crowns from European funds have been allocated to support the purchase of electric vehicles, with an additional 300 million crowns set aside for the acquisition and building of charging infrastructure. To use the EU fund’s resources for electric car support, the Czech Republic’s businesses must purchase at least 4,555 electric vehicles. By the end of March 2024, Czech subsidy applicants will be able to submit their first applications.

The subsidy amount for electric vehicles for firms and self-employed individuals (OSVČ)

Companies of any size and individual entrepreneurs can apply for support for the purchase of passenger and freight vehicles with electric and hydrogen engines, as well as for the construction of charging stations, subsidies for which are provided only for the purchase of vehicles without harmful emissions.

State support is provided in the form of a portfolio bank guarantee for a commercial loan from a leasing company or commercial bank, as well as a financial contribution, i.e., a subsidy component. The National Development Bank (Národní rozvojová banka, NRB) provides the guarantee to the business owner as part of a loan for the purchase of a vehicle or charging station.

The guarantee can cover up to 70% of the principal amount of the guaranteed loan, and in the case of purchasing a passenger car, the guarantee can be provided for an amount ranging from 300,000 to 1.5 million Czech crowns. The guarantee period is up to 5 years. According to the official document “Záruka Elektromobilita – I. výzva,” the financial contribution can be up to 200,000 crowns for passenger cars and up to 300,000 crowns for trucks or hydrogen vehicles.

“A subsidy of up to 50,000 crowns is available for the purchase of alternating current (AC) charging stations and up to 100,000 crowns for direct current (DC) charging stations with a capacity of up to 40 kilowatts. A subsidy of up to 150,000 crowns is available for the purchase of more powerful direct current stations. The overall amount of assistance for a vehicle and charging station should not exceed the minimal rate of state help, which is 200,000 euros for one company over three years,” according to a Ministry of Industry and Trade document.

Subsidies for electric vehicles for private individuals

Unfortunately, if you’re a private individual looking to receive a subsidy for an electric vehicle, such a program does not exist at the moment. The “New Green Economy” program’s maximum subsidy is designated for the installation of charging stations, not for the purchase of electric vehicles by individuals.

Application period for electric vehicle purchase subsidies

The initial plan was to open the subsidy application window from January 1 of this year until September 30, 2025. However, this timeline has been adjusted. The National Development Bank is now slated to start accepting applications in the latter half of March.

Eligibility and requirements: who is entitled to subsidies?

All companies, regardless of size, and all individual entrepreneurs (OSVČ) are eligible to receive subsidies. The condition is that the entrepreneurs must operate in the following sectors:

• Manufacturing and construction,
• Retail and wholesale trade,
• Transportation and storage,
• Monetary transactions and insurance,
• Cultural, entertainment, and recreational activities, among other industries.

Conversely, entrepreneurs must not be engaged in activities in the following sectors:

• Production of weapons and ammunition (CZ-NACE 25.4),
• Gambling, casinos, and betting offices (CZ-NACE 92),
• Sectors bring people together to promote common interests (CZ-NACE 94).

Additionally, enterprises owned by local authorities are not eligible to apply.

Additional conditions for receiving an electric vehicle subsidy

To be eligible for electric vehicle subsidies in 2024 and 2025, the legal entity applying must:

• Be a small, medium, or large enterprise.
• Have registered beneficial owners in the Registry of Beneficial Owners in accordance with Act No. 37/2021 on the registration of beneficial owners.
• Have a permit to conduct business in the Czech Republic in the economic activity sector for which the project is implemented.
• Be an entity for which the provision of assistance does not contravene Act No. 253/2008 Coll., on certain measures against the legalization of proceeds from crime and the financing of terrorism, as amended, and other relevant regulations.
• Have completed at least the two most recent reporting periods.

Furthermore, the enterprise must not:

• Be bankrupt according to the provisions of Section 3 of Act No. 182/2006 Coll., on Insolvency, as amended (in the case of a branch of a foreign enterprise—in accordance with the legislation of the country in which the enterprise has its registered office).
• Have overdue liabilities to individual institutions and support providers from programs co-financed by the European Union budget; a deferred payment of liabilities or an agreement on debt payment is considered a settled liability.
• Have salary debts to its employees.
• Be subject to enforcement proceedings in relation to the enterprise’s property.
• Be in the process of liquidation.
• Being a business that has been declared bankrupt according to Article 136 of Act No. 182/2006 Coll., on Insolvency, as amended (if the business is a branch of a foreign company, according to the laws of the country where the company’s main office is located); if the business follows the court’s decision to reorganize, it is not considered bankrupt.
• Have a monetary debt arising from an enforcement order issued following a previous decision by the Commission that the aid was illegal and incompatible with the internal market.
• Be subject to prohibitory injunctions imposed by a court or administrative body concerning the conduct of trade.
• Be an enterprise in difficulty, as defined in Article 2(18) of the General Block Exemption Regulation (GBER).
• Have a conflict of interest concerning its person as defined in Article 61 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018, laying down financial rules for the general budget of the Union (“Financial Regulation”).

Where can I find a sample application for an electric vehicle subsidy?

The National Development Bank expects to start accepting applications in the second half of March this year. At the same time, all necessary forms, as well as a list of collaboration partners to which applications can also be submitted, will become available on its website.

How to apply for an electric vehicle subsidy

As Marian Piecha, the Chief Director of the EU Funds Department, reported last December, the application process will be very simple. All branches and regional offices of the National Development Bank will accept applications for support.

The application for support must include:

• A duly completed application form for assistance,
• A properly filled-out “Project Assistance Application” attachment,
• A copy of the credit agreement that includes the provision of the NRB’s bank guarantee as the necessary security and the presentation of the guarantee agreement as a condition for granting the loan.

Source

https://www.e15.cz/dotace-elektromobil-2024-2025