Credit: Clever Fueren

The Luxembourg government has begun accepting applications for financial aid for zero or low-carbon vehicles.

Following the publication in the Official Journal of the Grand-Ducal Regulation of 7 March 2019 introducing financial assistance for the promotion of zero or low-carbon road vehicles, applications for financial aid for bicycles and pedelecs25 may now be introduced.

In order to further promote electromobility and soft mobility, the government has decided to replace the old model of tax incentives with a new model of targeted subsidies, including allowances for bicycles and pedelecs25 and a premium for self-propelled vehicles.

Regarding the former, the financial allowance is allocated for new bicycles and pedelecs25 (pedal-assisted bicycles with a power not exceeding 0.25 kW) for which the invoice was issued in 2019. The assistance is reserved for natural persons residing in the Grand Duchy and at least 18 years of age at the time of purchase of the bike or pedelec25 for their personal needs. Only one financial aid per person for either a bike or a pedelec25 will be granted within a period of five years. The amount of the allowance is 25% of the VAT cost of the bike or pedelec25, but not more than €300. Requests for bicycles and pedelecs25 can now be submitted to the Environment Administration via a form available on www.guichet.lu.

The main terms and conditions for granting financial aid for self-propelled vehicles, which covers cars and vans as well as quadricycles, motorcycles, light motorcycles (125 cm3) and mopeds (scooter and pedelec45), can be found on the website www.clever-fueren.lu. Financial assistance is reserved for vehicles first put into circulation between 1 January and 31 December 2019 inclusive and which have not yet been registered abroad. Applications for self-propelled vehicles may be made no earlier than seven months after the date on which the vehicle was registered in the name of the applicant for financial assistance. The application form will be made available in due course.