Tax credit for buying a clean vehicle raised to €3,000 when an old car is scrapped

Article 29 of the 2006 Amending Finance Act rewrites Article 200 quinquies I of the General Tax Code. The €2,000 tax credit applies to the new purchase or long-term lease of a vehicle running on LPG, natural gas or electricity with CO2 emissions not exceeding 200 g/km in 2006, 160 g/km in 2007 and 140 g/km from 2008, and to the LPG conversion of recent petrol vehicles. It rises to €3,000 when the purchase is accompanied by the scrapping of a car registered before 1 January 1997 and owned for at least twelve months. The scheme covers expenses paid from 1 January 2006 to 31 December 2009; the increase applies from the taxation of 2006 income, i.e. tax paid in 2007.