Prime Minister Luc Frieden announced on Wednesday that subsidies for various eco-friendly initiatives, including photovoltaic systems, heat pumps, electric cars, and bicycles, will be extended until the end of June.

The extension covers state subsidies for photovoltaic installations and heat pumps, both integral parts of the housing climate bonus, stretching the support period by an additional six months. Prime Minister Luc Frieden announced this development during a press briefing following the Government Council meeting.

In addition, subsidies for electric cars, bicycles, and charging stations were set to expire at the end of March but will now remain in effect until the end of June. The Prime Minister stressed that the government aims to conduct a comprehensive analysis of these measures over the next six months, exploring ways to link the subsidies to certain social criteria.

The government plans to scrutinise fiscal and procedural measures related to housing in discussions between ministers, sector representatives, and municipal authorities. According to Frieden, the objective is to ensure a unified effort from all stakeholders. A more comprehensive, large-scale discussion is scheduled for February to consolidate findings and insights.

Specific tax benefits, including accelerated depreciation and the tax credit on notarial instruments ("Bëllegen Akt"), are yet to be outlined in legislation and subsequently voted on in the Chamber of Deputies. These measures would be retroactively applicable from 1 January 2024, as emphasised by Prime Minister Frieden.