Zug promotes sustainability and innovation

With the new law on location development and the associated ordinance, the canton of Zug is creating a powerful support system for sustainability and innovation from January 1, 2026. Up to CHF 150 million will be available annually until 2028, financed from the additional revenue from the OECD minimum tax.

On November 30, 2025, the Zug electorate clearly approved the Site Development Act. The cantonal government has now passed the implementation ordinance, meaning that the law and ordinance will come into force on January 1, 2026. The canton is investing the expected annual net additional revenue of around CHF 200 million from the OECD minimum tax in three areas. In social measures such as childcare, education and housing, infrastructure and innovative projects, such as blockchain and ETH collaborations or energy projects, as well as targeted subsidies to companies for sustainability and innovation.

Impact-oriented sustainability promotion
The central element of SEVO is impact-oriented promotion of climate protection in companies. Support is provided for projects that substantially reduce greenhouse gas emissions in the supply chain. The prerequisite is a saving of at least 50,000 tons of CO₂ equivalents; 30 francs are paid per ton saved. In this way, the canton rewards measurable, verifiable emission reductions instead of purely declarative climate promises and provides a clear incentive for large decarbonization projects.

Stimulus for research and development
In addition to sustainability, the program specifically addresses the innovative strength of Zug’s economy. The expenditure-based innovation promotion supports research and development activities with a contribution rate of 25% on qualifying personnel expenses, supplemented by a flat-rate infrastructure supplement of 35%. Funding is also provided for clinical studies conducted in Switzerland. In this way, the canton of Zug is strengthening both technology-oriented companies and research-intensive sectors such as pharma, medtech and deeptech.

Flexible system in the shadow of the minimum tax
The ordinance is deliberately designed to be flexible in order to be able to react to a dynamic international tax environment. The background to this is the OECD minimum tax, which affects around 400 companies in the canton. The new support system is intended to compensate for impending locational disadvantages and ensure Zug’s attractiveness as an international business location. Companies can submit applications for the first time from March 1, 2026, based on the figures for the 2024 financial year. The Directorate of Finance is responsible for implementation. The aim is an unbureaucratic, efficient system that rewards clearly measurable achievements in sustainability and innovation and positions Zug in global competition in the long term.

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