In view of the tripartite agreement of 31 March 2022, the Government has established a new funding scheme to assist in the purchase of zero-emission heavy-goods vehicles (categories N2 and N3). This is a time-limited aid scheme and will be reviewed when the new EU regulations on State aid are transposed into Luxembourg national law.

Aid application forms are available on MyGuichet.lu.

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Who is concerned

Any business that has obtained a business permit.

Prerequisites

Compliance with the general terms and conditions

All businesses which meet the general conditions that apply to State aid are entitled to this type of aid.

Zero-emission heavy-goods vehicles

Zero-emission heavy-goods vehicles (categories N2 and N3) are eligible. Examples include all-electric N2 or N3 vehicles, or ones which run on hydrogen fuel cells.

The costs involved in retrofitting a heavy-goods vehicle with an internal combustion engine to a zero-emission vehicle may also be covered by the scheme.

The N2 and N3 zero-emission vehicles for which the aid is being applied for must comply with the following conditions. They must:

• be used for the transport of goods;
• be registered in Luxembourg;
• be new, except in cases of retrofitting, in which case the internal-combustion vehicle being retrofitted must previously have been registered in Luxembourg;
• be used by the applicant business for a period of at least 5 years after they enter service;
• undergo an assessment to justify their use as a zero-emission heavy-goods vehicle;
• run on 100 % renewable electricity.

If purchasing an electric vehicle, it must run on 100 % renewable electricity. The businesses in receipt of this aid must ensure this is the case by signing a renewable-electricity supply contract. Alternatively, the business may, directly or through its supplier, purchase guarantees of renewable origin for amounts of electricity consumed by the vehicle.

Deadlines

Eligible businesses may submit only one aid application per year, to be sent in writing to the Minister of the Economy.

All aid applications must be submitted before any work commences – i.e. before any binding commitments are made (e.g. placing of orders/acceptance of quotes).

How to proceed

Filing an application

The aid application for zero-emission heavy-goods vehicles must be filed using an online assistant on MyGuichet.lu (see 'Forms / Online services').

As part of the process, the business must choose:

• the ‘ENV – Environmental protection’ scheme; and
• the following type of aid: ‘ENV-NOR – Investment enabling businesses to exceed EU environmental protection standards or to increase the level of environmental protection despite the absence of such standards’.

The person filing the application (the applicants themselves or their representatives) must have a LuxTrust product (e.g. Token, Smartcard or Signing Stick) or an electronic identity card (eID).

The application must be filed before the commencement of the work.

Supporting documents

The application for aid must include the following information and documents:

• the name and size of the company;
• the business's organisational chart (also indicate direct or indirect links with other legal persons);
• the annual accounts for the most recently closed financial year (those of the applicant company and those of any of its partners or affiliates);
• a bank account identification document;
• a certificate of affiliation from the Joint Social Security Centre (Centre commun de la sécurité sociale — CCSS) stating the number of employees;
• a copy of the business permit, if need be;
• the dates for the start of the works and the entry into service of the zero-emission vehicles;
• a detailed description of the project;
• the amount and intensity of financial aid required to complete the project;
• the price quotation (order not yet placed) for the zero-emission vehicle and an equivalent internal-combustion vehicle (list price);
• for retrofitting, a price quotation (order not yet placed) for the retrofitting of the vehicle in question;
• any other relevant information which would help the minister in charge to assess the qualities or the specific features of the project and its incentive effect;
• the results of a trip-by-trip assessment justifying the use of a zero-emission vehicle.

Maximum amount of financial aid

The amount of the aid is calculated based on the eligible project costs.

The intensity is calculated on the basis of the excess cost – i.e. the difference between the cost of buying a zero-emission vehicle and the cost of buying an equivalent internal-combustion vehicle, or the costs of retrofitting to make the vehicle into a zero-emissions vehicle, if applicable.

For each project, the maximum intensity of the aid is:

• for a large enterprise: 40 % of eligible costs;
• for a medium-sized enterprise: 50 % of eligible costs;
• for a small enterprise: 60 % of eligible costs.

The total amount of aid received may not exceed EUR 300,000 per group (single economic entity).

In the absence of an offer/quote for an equivalent internal-combustion vehicle, the granting authority will deduct a set amount, which depends on the vehicle in question.

Investments to be made

The purchase of zero-emission vehicles does not cover the purchase of second-hand vehicles or leasing of vehicles.

Operating costs and costs involved in complying with legal, regulatory or administrative requirements in force are not eligible.

The eligible costs do not include taxes or other deductions.

Payment of the aid

The cash subsidy is paid by the Ministry of the Economy after the completion of the project, i.e., when the new vehicle is registered.

The application for payment of the aid must be filed using an online assistant on MyGuichet.lu (see ‘Forms / Online Services’).

The person filing the application (the applicant themselves or their representative) must have a LuxTrust product or an eID card.

The application for payment must be filed before the deadline specified in the decision/agreement.

Applications for aid must include the following information and documents:

• the registration certificate indicating the type of vehicle;
• the vehicle's certificate of conformity (COC);
  
• for fully electric vehicles:
  
  • either a copy of a document issued by the electricity supplier proving that the applicant has entered into a contract with them for the supply of green electricity from 100 % renewable sources;
    
  • or evidence that the business has, directly or through its supplier, purchased guarantees of renewable origin for the amounts of electricity consumed;
• a copy of the contract of sale for the vehicle, and the receipted invoice.

Good to know

Example:

Indicative example of the purchase of 3 fully electric 16-tonne trucks (category N3) by a medium-sized enterprise [Group with: Headcount < 250, Annual turnover < EUR 50 million and Annual balance-sheet total < EUR 43 millions]

Sales tax-exclusive list price for a diesel vehicle: EUR 55,000
Sales tax-exclusive list price for a fully electric vehicle: EUR 290,000

Extra cost for a fully electric vehicle compared to its diesel equivalent: EUR 235,000
Applicable maximum intensity of aid (for a medium-sized enterprise): 50 %

Maximum subsidy per vehicle: EUR 117,500
Subsidy for 3 vehicles: EUR 352,500 (exceeds the cap of EUR 300,000 per group)

Applicable maximum subsidy for the group: EUR 300,000

Forms / Online services

Who to contact