Notice of the General Office of Shanghai Municipal People’s Government on Transmitting the Policies and Provisions on Promoting the Development of Shanghai New Energy Automobile Industry Formulated by the Municipal Development and Reform Commission and the Municipal Economic Information Commission

(December 7, 2009)

                                                     SMPG GO G [2009] No.55

Attention: All District and County People’s Governments, all Commissions, Offices and Bureaus (administrations) of the Municipal People’s Government:

The Policies and Provisions on Promoting the Development of Shanghai New Energy Automobile Industry formulated by the municipal development and reform commission and the municipal economic information commission have been approved by the Municipal People’s Government. We hereby transmit them to you, and request you to implement them conscientiously.

Policies and Provisions on Promoting the Development of

Shanghai New Energy Automobile Industry

Chapter I  General Provisions

Article 1

With a view to carrying out the Program for the Adjustment and Invigoration of Automobile Industry promulgated by the State Council, the Opinions on Further Pushing the Scientific and Technological Innovation and Accelerating the High-Tech Industrialization made by the Municipal Party Committee and the Municipal People’s Government, and the Opinions on the Implementation of the Quicker Pushing of Shanghai High-Tech Industrialization made by the Municipal People’s Government, speeding up the lifting of the independent innovation capability and industrial competitiveness, and optimizing the innovation and development environment for Shanghai new-energy automobile industry and giving play to the important supporting role of Shanghai new-energy automobile industry in Shanghai economic development, these Provisions are hereby formulated. 

Article 2

These Provisions apply to enterprises and agencies that have their industrial and commercial registration and taxation registration in this Municipality and engage in the development, production, application and services of new-energy automobiles and their key parts (hereinafter referred to as “new-energy automobile enterprise”), as well as individual persons.

Article 3

The overall target of this Municipality’s new-energy automobile industry development is to take hybrid-powered automobiles and pure electricity-powered automobiles as the main attack direction, take “battery, motor and electricity-control” (hereinafter referred to as “3E” key parts as the breakthrough point, synchronously support fuel-cell cars and other new-energy automobiles to lower the cost and improve the properties, and speed up the occupying of a commanding height of technology and market growth so as to form an independent industry system and industrial cluster taking the lead in the country and possessing international competitiveness.  

Chapter II  Support for Research and Development in Technology and Industrialization

Article 4 

A certain amount of funding shall be arranged in the government input in science and technology to support the joint attempt of enterprises, universities and research institute to tackle the key problems in the new energy automobile industry, and quicken the breaking-through of the linchpin technical bottleneck in the“3E”field, including power battery’s positive and negative materials, battery diagrams, battery technology and battery control system, and magneto high-temperature resistant materials, power electron modules, motors and their control systems, and highly reliable controllers, sensors, actuators and energy-optimized management systems.

Article 5

Encouragement and support shall be given to new-energy automobile enterprises to apply for special supporting plans such as the 863 plan, 973 plan, sci-tech supporting plan, national key new products, national-level important scientific research facilities and bases, national-level high-tech industry development projects and the city-level major laboratories, enterprise technical centers, technical reforms, talent plan, little giant plan and new products, and financial support shall be granted according to relevant provisions of the State and this Municipality.

Article 6

This Municipality shall arrange special funds to support the integrated whole-vehicle development of new-energy automobiles and the technical breakthrough and industrialization of key parts. With respect to an industrialization project listed in this Municipality’s major projects on independent innovation and high-tech industry development, the proportion of the special fund support shall generally not exceed 10% of the total newly added investment of the project; with respect to a major industry sci-tech key-problem-tackling project including 3E key parts and public platform building project, the proportion of the special fund support shall generally not exceed 30% of the total newly added investment of the project; and the support shall be specifically granted through the modes of capital fund injection (including the follow up investment of the career-starting guidance fund), loan interest discount and investment subsidies. 

Article 7

Support shall be given to renovation and enlargement projects of new-energy vehicles, introduction projects of technology and equipment and projects of acquisition and merge of overseas enterprises and R&D institutes with core technology and with relatively controlling share rights in new-energy automobile industry, and loan interest discount or free financial aid shall be granted according relevant provisions of this Municipality.

Article 8

With respect to transformational projects of high-tech achievements with recognized independent IPR in the new-energy automobile industry, support shall be given through special funds for the translation of high-tech achievements according to relevant provisions of this Municipality.  

Article 9

Support eligible new-energy automobile enterprises to apply for the recognition of national high-tech enterprises or service enterprises with advanced technology, and therefore be entitled to enjoy preferential policies on tax as provided by the State. A new-energy automobile enterprise may, on calculating its income tax payable, have additional deduction of its R&D expenditure incurred in developing new technology, new products and new techniques; proceeds gained by new-energy automobile enterprises from technical transfer, development business and related technical consulting and service business shall be exempted from business tax.

Article 10

The input of the municipal state-asset management department in the R&D of new-energy automobiles in enterprises under this Municipality’s state-asset contribution and supervision, shall, upon examination, be construed as actualized profit at the performance checking of those property right representatives of such enterprises. 

Chapter III  Support for Application and Popularization

Article 11

Increase the government purchase of new-energy automobiles, governments shall first purchase the new-energy automobiles recognized and listed in the “Catalogue of Shanghai Independent Innovational Products”, which shall be simultaneously listed in the “Catalogue of Independent Innovation Products for Shanghai Municipal Government Procurement” and the procurement scale be expanded year after year.

Article 12

Encouragement and support shall be given to the state enterprises, public institutions and individual persons to purchase and use new-energy automobiles, and positive support be given to units in the public service field such as public transportation, taxi, public affairs, environmental sanitation and postal service to apply for the state fiscal subsidy funds for energy conservation and demonstration and popularization of new-energy automobiles.

Article 13

Strengthen the planning and construction of new-energy automobiles’ auxiliary facilities like electricity-charging and hydrogen-filling stations. The construction of related auxiliary facilities shall be included in this Municipality’s planning of corresponding specialized systems. Investment on equipment of auxiliary facilities shall be given financial support not exceeding 20% or 3 million yuan. Encouragement and support shall be given to electrical power companies and other enterprises to participate in the construction of electricity-charging stations and other auxiliary facilities.   

Article 14

Interest discount support shall be given to the enterprises engaged in the rental business of new-energy automobiles’ power batteries on the loan interest incurred in the purchase of such batteries through financing, with the maximum term of interest discount not exceeding three years.

Chapter IV  Support for Industrial Bases and Detecting Services

Article 15

Accelerate the construction of industrial bases of new-energy automobiles and key parts in Jiading and other districts/county. Encourage district/county people’s government to draw up supporting policies, establish district-level special funds for the development of new-energy automobile industry, and perfect R&D, detecting service and other public service platforms. Eligible enterprises and projects stationed therein shall be given support in such aspects as project examination and approval, funds, land, personnel and correlative industries. The planning and state land resources administration shall, in the industrial zone plot recognized by the “two Provisions”, support major projects of new-energy automobile industry in getting priority in fixing land-use plan index and balance index for occupation and compensation of arable lands.

Article 16

Strengthen the building of the capacity in detecting tests, development of common technology and such other services of new-energy automobiles. Offer eligible detecting agencies financial support of not exceeding 30 percent of the total investment in detecting equipment the agencies use for detecting test of new-energy automobiles. Offer new-energy automobile enterprises financial support of not exceeding 50 percent of the total expenditure on testing and attestation of their eligible independent R&D and innovation. Encourage the relevant district/county to give supplementary support. 

Article 17

Encourage and support new-energy automobile enterprises to translate their technical innovation achievements with independent IPR into the local and national standards. The municipal science commission, quality and technical supervision bureau, and other departments shall support and give priority to the proposal approval of the standardization projects relating to new-energy automobiles, and financial aid shall be granted from the municipal special funds for the promotion of standardization.    

Chapter V  Financial and Personnel Support

Article 18

This Municipality’s guidance fund for the career-starting investment shall, through share-holding or other ways, guide and support the establishment of career-starting agencies and funds for new-energy automobile industry. Positive support shall be given to eligible new-energy automobile enterprises to go public at home and abroad, to issue corporation bonds, short-term financing certificates and mid-term bills. New-energy automobile enterprises shall be encouraged to enhance innovations in the system and mechanism, and to further transform the operating mechanism and to raise the industrial capacity level through strategic acquisition, merge, reorganization, and other modes. 

Article 19

Encourage and direct financial institutions to support the industrial development and popularized application of new-energy automobiles. Financial institutions shall innovate their products, improve services and provide credit, guarantee and other support for eligible R&D and industrialization projects, infrastructure of industrial bases and public service platform projects relating to new-energy automobiles. Encourage financial institutions to increase their support for the consuming credit loan and insurance of new-energy automobiles. Active exploration shall be made through this Municipality’s guidance fund for the career-starting investment to provide financing guarantee for eligible projects of new-energy automobiles.  

Article 20

Actively create conditions to introduce excellent leading talents and technical teams in the new-energy automobile industry at home and abroad, with stress on carrying the “thousand-person plan” for overseas high-level talented people. The introduced persons may be given priority in settling Shanghai household registration or Shanghai Residence Permit according to relevant provisions. Establish a cooperation mechanism among enterprises, universities and research institutes, and make greater efforts to train talents for the new-energy automobile industry through cooperation between schools and enterprises or other modes. Support shall be given to higher-learning institutions and scientific research institutes to build research bases and innovation platforms of new-energy automobiles, and support shall be given to eligible colleges and universities to set up disciplines and specialties relating to new-energy automobiles.

Chapter VI  Supplementary Provision

Article 21

These Provisions shall be interpreted by the municipal development and reform commission and the municipal economic information commission jointly with relevant departments. The relevant municipal departments may draw up implementation rules according to these Provisions and their specific work needs. The relevant district/county people’s government may, in line with the actuality, draw up relevant policies and specific working schemes and pay attention to the implementation thereof.

Shanghai Municipal Development and Reform Commission

　　                 Shanghai Municipal Economic Information Commission

November 11, 2009