The government of the Swiss Canton of Lucerne has announced a public consultation on its plans for economic development on 10 March 2025. The canton aims to invest CHF 300 million annually starting in 2026 to address changes in international tax rules, such as the Pillar Two global minimum tax.
A key part of the plan is the introduction of the Lucerne Innovation Contribution (Luzerner Innovationsbeitrag – LIB), an incentive to support research and development (R&D). Businesses can receive a financial grant or a refundable tax credit through this programme.
The credit will cover 30% of R&D personnel costs, 20% for investment depreciation, and 10% for contract research. The credit can offset a company’s tax liability in Lucerne for up to four years. If the credit exceeds the tax due, the remaining amount will be refunded to the company.
“Lucerne is doing well, and this gives us the opportunity to invest in our living and economic space to remain attractive in the long term. This is the goal of this proposal,” says Government Councillor Fabian Peter, head of the Department of Construction, Environment, and Economics.
The consultation is set to conclude on 9 June 2025.
