Bëllegen Akt offers eco incentive

(JB) The government has offered a large cash incentive for home-owners to reduce their energy consumption.

As part of the Bëllegen Akt, home buyers could claim up to 20,000 euros and claim tax rebates if their property meets strict energy consumption guidelines.

As of January 2012, home buyers will automatically receive a cash bonus of 10,000 euros. Meanwhile, a second instalment, could be transferred if the property adheres to strict energy-saving criteria.

The aim is to promote energy efficiency in new developments and improvements in existing, low-performing buildings.

Finance minister Luc Frieden said: “Everyone has a responsibility for safeguarding the planet.”

For people wishing to build a property, to qualify for the funding new constructions must be rated as either category A or B in the energy saving scale.

Applicants who buy ready-constructed properties must make improvements which will bring the home up to energy class D in order to benefit from the second pot of funding.

The funding applies to all home-buyers irrespective of whether they are a first-time buyer. However, once the maximum funding has been received, applicants cannot apply for further funding, for example if they buy another property.

Property owners who plan to rent out a building will also be able to benefit from tax and VAT savings if they make energy-saving adjustments. If specific targets are met, they could receive a 10% tax saving each year for the first eight years. Meanwhile, renovations designed to save energy on a property aged seven years or older will be subject to a 3% VAT saving.