Polish KPO Revisions Expand Green Investment and Zero-Emission Vehicle Subsidies

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The Council of Ministers announced a formal decision to amend the KPO with additional funding across several sectors, including energy efficiency and agriculture. The government also confirmed that the tax on combustion engine cars would be removed and a subsidy scheme for zero emission vehicles would be introduced.

The revision of the KPO is described as a response to delays and payment arrears left by the previous administration, with the aim of speeding up ongoing reforms.

Allocated resources will support the green transformation of the economy, bolster technological development, expand digital solutions, and improve the availability and quality of healthcare services.

– the official statement noted.

The proposed changes target improved execution of activities in several areas, including green transformation, smart and sustainable economic growth, healthcare, digital transformation, and policies affecting children and young people.

Key financial adjustments include boosting investments in energy efficiency for multifamily housing from €100 million to €240 million. The plan also increases funding for diversifying and shortening the supply chain for agricultural and food products to €600 million, bringing total support to farmers and rural areas to €2.5 billion, as stated in the announced measures.

Funding for the development of long term care will rise through the modernization of medical facility infrastructure in poviats, with the budget increasing from €150 million to €300 million.

Changes in investments

Major investment updates include expanding the laptop voucher program to reach teachers in broader groups, and the construction of an additional technical terminal in Darłowo to support wind farm development. Beginning January 1, 2026, a senior voucher will be introduced for people over 75 who require assistance with daily activities. Outpatient specialist care will be supported through cooperative centers within the National Oncology Network. There is also a push to accelerate electronic document management and to raise the digitalization level across National Tax Administration services and processes.

The amended KPO eliminates the plan to impose a tax on combustion engine cars. A new financial instrument will assist individuals in purchasing zero-emission vehicles. A subsidy will be available for the purchase, leasing, or long-term rental of electric vehicles.

For used vehicle subsidies, aid will cover part of the price, up to PLN 40,000 for a natural person. When leasing or long-term rental is chosen, aid will not exceed the initial compensation. An additional 10 percent boost applies if the applicant presents a demolition certificate showing a combustion vehicle has been owned for at least three years. A further 10 percent boost applies if the applicant’s income in the year before the subsidy submission was under PLN 135,000.

To avoid over-subsidizing the most expensive electric cars, price caps are set at PLN 225,000 for new vehicles and PLN 150,000 for used ones, with used vehicles not older than four years accepted for subsidy eligibility.

End of statement.

Source: official government announcements and briefings. Attribution: Ministry of Finance and responsible government bodies provide the details of the revised KPO measures.

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