Hunan’s Cash Subsidies for Machinery Renewal(Sep 2)

Hunan Province Subsidizes Construction Machinery "Renewal" with Real Money

Recently, the Hunan Provincial Department of Ecology and Environment, Department of Finance, and Department of Commerce jointly issued the "Hunan Province Work Plan for Phasing Out and Updating Non-Road Mobile Machinery Compliant with National Stage II and Below Emission Standards," providing tiered financial subsidies for the elimination and renewal of eligible non-road mobile machinery across the province.

The subsidy targets non-road mobile machinery within the province that meets National Stage II or below emission standards, or was manufactured before April 1, 2016 (exclusive). This primarily includes loaders, excavators, forklifts, bulldozers, pavers, and rollers. Machinery owners—including individuals, sole proprietors, enterprises, and other non-government-funded entities—are eligible to apply. Agricultural machinery, aircraft, and vessels are excluded from the subsidy scope.

The subsidy is divided into two models: elimination subsidies and renewal subsidies. Machinery owners may receive an elimination subsidy by delivering old machinery to a qualified vehicle dismantling and recycling enterprise, rendering the engine permanently inoperable, or by retrofitting the machinery with a pure electric motor and destroying the original diesel engine. A renewal subsidy is available when machinery owners retire old equipment and purchase new energy machinery within the province. Elimination and renewal subsidies may be claimed cumulatively.

Subsidy amounts are determined by machinery type, classification, and engine power, with higher power receiving higher subsidies. For example, a large excavator qualifies for an elimination subsidy of 57,000 CNY and a renewal subsidy of 230,000 CNY, with a combined maximum of 287,000 CNY. Retrofits with pure electric motors receive only the elimination subsidy, without the renewal subsidy overlay.

For the application process, machinery owners submit preliminary review materials to the local municipal or prefectural ecology and environment department. Old machinery is delivered to a qualified enterprise for dismantling, the engine block is destroyed, a scrap recovery certificate is obtained, and the machinery code is deregistered. New energy machinery must be purchased by December 31, 2028, after which subsidy application materials are submitted. Funds are disbursed following review and public notice without objection.

Subsidies are not granted to: government-funded entity owners; machinery that is naturally scrapped or scrapped due to accidents; renewals with used machinery; cases where the original engine is not scrapped after replacement; cases where key information is tampered with; or cases where machinery ownership is unclear.

According to the plan, by 2028, the province aims to phase out 60% of National Stage II and below construction machinery (including equipment with over 10 years of use and unknown emission stages). New or updated machinery at key sites will be "electrified wherever possible."

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