LIFESTYLE - MONEY

Some changes as electric, hydrogen, hybrid subsidies extended



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A Luxembourg resident plugs in his electric vehicle to charge. Photo: Mike Zenari 

Luxembourg has extended its state subsidies for the purchase of an electric, hybrid or hydrogen-powered vehicle or electric bike until 31 March 2022, with some changes.

On Wednesday, the government adopted regulation to extend the “clever fueren”--or smart driving--scheme in a bid to ease the shift to electric and low-carbon mobility.  

The €8,000 euros “Neistart Lëtzebuerg” boost for 100% electric cars is maintained, provided that their electric energy consumption does not exceed 18 kWh/100 km, a value met by about 75% of newly registered pure electric cars in 2020. For more energy-intensive/less energy-efficient cars, whose electric energy consumption exceeds the above-mentioned threshold, the amount of the bonus is capped at €3,000.

In order to take into account the needs of large families, an €8,000 subsidy will be granted for cars with seven or more seats, regardless of their electrical energy consumption, provided that the applicant is part of a household of at least five people.

For 100% electric vans, the amount of the premium remains unchanged at €8,000. The same applies to hydrogen fuel cell cars and vans.

These new provisions will apply to vehicles ordered between 1 April 2021 and 31 March 2022 and whose first entry into service takes place before the end of 2022, in order to take into account delivery times.

For plug-in hybrid electric cars and vans, the financial aid amounts to €1,500 euros. In accordance with the guidelines adopted by the government as part of the Integrated National Energy and Climate Plan, the bonus applies only to vehicles purchased and put into circulation for the first time between 1 April and 31 December 2021.

For other 100% electric vehicles (quadricycles, motorcycles and mopeds), the financial aid offered (50% of the cost excluding value-added tax of the vehicle, but not exceeding €1,000), revised upwards under the “Neistart Lëtzebuerg” programme, remains unchanged.

The minimum ownership period of seven months remains applicable for all vehicles subject to registration. The applicant for financial aid, provided that they are natural person who owns the vehicle, will now be able to submit his application for financial aid as soon as the vehicle is registered in their name.

Vehicles not subject to registration

Financial aid for bicycles and pedal cycles, the amount of which was doubled under the “Neistart Lëtzebuerg” programme (50% of the cost of the vehicle, excluding value added tax, but not exceeding €600), also remains unchanged. The new provisions will apply to bicycles and pedal cycles purchased between 1 April 2021 and 31 March 2022.