Taiwan started from a scooter heavy reality
Taiwan already lives on two wheels, so any transport policy hits fast. The Ministry of Transportation and Communications reported about 62.7 scooters per 100 people in April 2025. It also reported 14.662 million registered scooters in January and February 2025.
That matters because scooters shape noise, air quality, and fuel use. It also matters because scooters feel affordable, so people need a strong reason to switch. Taiwan chose a direct one, money.
The simple pitch was cash for a cleaner replacement
Taiwan did not just offer a discount on a new electric model. Instead, it linked many rewards to scrapping older engines. That design pushes the oldest, smokiest vehicles out first. It also helps the government track real replacements, not just new purchases.
The Ministry of Environment built an online matching system in 2022. The system connects owners with subsidy projects, and it also links replacement actions to carbon reduction credits.
How the national program works in practice
The Ministry of Environment lets people apply through its system after they buy a qualifying replacement. Citizens aged 18 or older can apply. Expatriates with a local residential permit can also apply. Private businesses can apply too.
Buyers must file within two years after the purchase. They also choose one scheme, and they cannot change it later. That rule matters because the system assigns the reduction credits either to the ministry or to the project sponsor.
The ministry also runs two types of support. It offers a carbon reduction purchase price offset. It also offers an air pollution reduction subsidy. In some cases, an applicant can apply for both.
What Taiwan pays for scooters and cars
The payout depends on the vehicle you scrap and the one you buy. It also depends on which scheme you use. Still, the ministry shared clear examples.
These are the headline numbers the ministry promoted in February 2026.
- Replacing a gas powered scooter with an electric scooter starts at NT$3,300. That total can include up to NT$2,000 from the carbon reduction purchase incentive, a NT$300 recycling reward, and a NT$1,000 air pollution reduction subsidy.
- Replacing a fossil fuel car can include about NT$1,000 in car recycling rewards. It can also include up to NT$16,000 in a carbon reduction purchase price offset.
- Replacing a diesel small passenger car or a light truck with an electric vehicle can reach up to NT$16,000. A hybrid replacement can reach up to NT$8,000.
- Replacing a gasoline small passenger car or a light truck with an electric vehicle can reach up to NT$13,000. A hybrid replacement can reach up to NT$6,500.
- Air pollution reduction payments for cars and light duty trucks can vary by sponsor. The ministry described a range from NT$2,000 up to NT$5,100 in some cases.
Those numbers read like a menu, and that is the point. A rider can see a minimum. Then they can see a best case. So they can decide if the paperwork feels worth it.
Here is what happened by the end of 2025
Taiwan’s Ministry of Environment reported strong use of the matching system. By the end of 2025, the system had supported 124,798 fossil fuel vehicle replacements. The ministry linked those swaps to a cumulative carbon dioxide reduction of 529,212 tonnes.
The ministry also described the supply of funding behind those offsets. It said 51 development projects nationwide must implement greenhouse gas offsets. It also said more organizations should join. In Taiwan, those sponsors can include public agencies and private entities, including Taiwan Semiconductor Manufacturing Co.
So the program does not rely on one annual budget line alone. It can pull support from offset obligations as well. That structure helps the program keep moving.
Cities add big scooter bonuses, and that changes the math
National money helps, but city money often closes the gap. That is especially true for electric scooters, where buyers watch every thousand dollars.
New Taipei City announced a 2026 subsidy plan on December 31, 2025. The city said residents can stack city and central incentives for up to NT$39,600 when buying an electric scooter. The city also raised its early bird bonus to NT$10,000 for the first 4,500 applicants. It added up to NT$4,000 for buying a new electric scooter and up to NT$10,000 for trading in an old one. It also offered an extra NT$10,000 for low and middle income households. The city said it will fund subsidies on a first come basis until the budget runs out.
Taoyuan City published a similar push for 2025, and it gave more detail on who qualifies. Taoyuan’s Environmental Protection Department said its maximum subsidy can reach NT$36,000 across replacement support and add on programs. The department said the replacement quota totals 8,500 spots. It also said the program runs until December 31, 2025, and it set an application deadline of January 10, 2026. It also allowed retroactive applications for purchases from January 1, 2025. Taoyuan said the city has over 100,000 electric scooters, which it put at a 7.21 percent market share.
Local rules can feel strict, but they keep programs targeted. For example, Taoyuan tied eligibility to residency status as of December 31, 2023. New Taipei required at least one year of local registration.
EV tax breaks keep electric cars in the conversation
Scooters dominate daily travel, but cars drive big emissions too. Taiwan also uses tax policy to make electric cars cheaper to buy.
On December 23, 2025, Taiwan’s Legislative Yuan passed amendments that extend electric vehicle commodity tax and vehicle license tax exemptions through December 31, 2030. The Ministry of Finance also explained the cap. For electric passenger cars, the tax free portion applies up to a taxable value of NT$1.4 million. The portion above that cap does not qualify for full exemption, and the law applies a partial reduction mechanism to the excess.
Those incentives cost real money, and Taiwan has been open about it. The Ministry of Finance said that, as of the end of November 2025, the EV commodity tax exemption had cost a cumulative NT$28.9 billion. It also said the EV vehicle license tax exemption had cost a cumulative NT$9.2 billion.
The adoption trend helps explain why lawmakers kept the policy. In a Ministry of Finance statistical bulletin dated August 21, 2025, the ministry reported 35,406 tax exempt full electric automobiles in 2024, or 7.7 percent of new registrations. It also reported 14,268 tax exempt electric automobiles from January through June 2025, or 7.2 percent of new registrations. The same bulletin reported refunds rising from NT$930 million in 2020 to NT$6.8 billion in 2024. It also reported NT$2.79 billion in refunds in the first half of 2025.
Why this story travels beyond Taiwan
Taiwan shows what happens when a government pays for a switch and also tracks the results. It also shows why local add ons matter. A city bonus can turn a maybe into a yes, especially for scooters.
At the same time, other places wrestle with access and equity in their own way. You can see that tension in this case study from ScooterPick, which looks at ridership growth and discount limits in a US city. Boise scooter and e-bike trips hit 900,000, but low-income discounts still struggle to catch on.
In Taiwan, the next step still looks practical. People need clear rules, simple filing, and predictable funding. So far, the government has put real numbers behind the push, and it has shown its work.
