Member States may make provision for financial incentives that apply to vehicles in series production which comply with this Regulation and its implementing measures.

Those incentives shall be valid for all new vehicles offered for sale on the market of a Member State which comply at least with the emission limit values in Table 1 of Annex I in advance of the dates set out in Article 10(3); they shall cease on those dates.

Financial incentives that apply exclusively to vehicles which comply with the emission limit values in Table 2 of Annex I may be granted for such new vehicles offered for sale on the market of a Member State from the dates set out in Article 10(3) in advance of the dates set out in Article 10(5); they shall cease on the dates set out in Article 10(5).

Member States may grant financial incentives for the retrofitting of in-use vehicles and for scrapping vehicles which do not comply.

For each type of vehicle, the financial incentives referred to in paragraphs 1 and 2 shall not exceed the additional cost of the technical devices introduced to ensure compliance with the emission limits specified in Annex I, including the cost of installation on the vehicle.

The Commission shall be informed in sufficient time of plans to institute or change the financial incentives referred to in paragraphs 1 and 2.