The budget provides for a scrappage scheme that will run from 1 January 2010 to 31 December 2010. This scheme provides for VRT relief of up to €1,500 on registration of a new passenger car with CO2 emissions of not more than 140g/km when another passenger car, more than 10 years old, is scrapped. The old car, which must have been registered for at least the previous 18 months in the name of the person registering the new car, must be scrapped at an Authorised Treatment Facility and a Certificate of Destruction issued. Other conditions relating to the scheme are available on the Revenue website.

The VRT exemption in relation to Electro Vehicles and Plug In Hybrid Electro Vehicles is extended for a further 2 years to 31 December 2012.