Electric car funding – who, when, where and how: The most important information

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From January 1, 2026, newly registered electric cars, fuel cell electric cars, certain plug-in hybrids, and electric cars with range extenders can be subsidized if the registering person or their household falls below certain income limits. All new vehicles of vehicle class M1 first registered in Germany are eligible for funding if they meet the climate protection-relevant conditions mentioned above. This means passenger cars, light or small vehicles of class L7e or electric motorcycles will not be subsidized. The key data of the subsidy, which has been available since the beginning of 2026, has now been reconfirmed by the Federal Ministry for the Environment (BMUKN) after consultation with the Federal Court of Auditors. No changes were necessary for this.

Was Elektroautos kosten

• Elektro-SUVs und Hybride im Vergleich: Das kosten BMW iX3 und Mercedes-Benz GLC
• VW ID.3: Das müssen Sie für mehr Leistung und Reichweite bezahlen
• Was 100 Kilometer mit dem Elektroauto Ende 2025 wirklich kosten
• BMWs Kompakt-SUVs im Vergleich: Das kosten iX3 und X3
• Das kosten Audi Q4, BMW iX1 und VW ID.4
• Elektro-Kleinwagen im Vergleich: Das kosten Hyundai Inster und Mini Cooper
• Elektro-SUVs Opel Grandland und Skoda Enyaq: Ausstattung und Kosten im Vergleich
• Elektroautos für Familien: Neu- und Gebrauchtwagen bis 50.000 Euro im Vergleich
• VW-Kombis im Vergleich: Was ID.7 Tourer und Passat tatsächlich kosten
• Was 100 Kilometer mit dem Elektroauto im Sommer 2025 wirklich kosten
• Was Ford Explorer und Skoda Elroq tatsächlich kosten
• Basismodelle im Vergleich: Was VW ID.3 und VW Golf tatsächlich kosten
• Elektroautos Kia EV3 und Skoda Elroq: Ausstattung und Kosten im Vergleich
• Gebrauchte Elektroautos bis 20.000 Euro: Sieben Modelle im Vergleich
• Elektroautos von 30.000 bis 45.000 Euro: Für Familie, Langstrecke und Komfort
• Elektroautos bis 30.000 Euro: Vom Kleinstwagen bis zum Kompakt-SUV

Purchase or lease of a new car

According to this, both for the purchase and lease of a new car, a subsidy between 1500 and 6000 euros can be granted, depending on the vehicle, income, and family size. As the BMUKN wrote yesterday, the three billion euros reserved for this should be sufficient for around 800.000 funding applications in the next three to four years. The money comes from the federal government's Climate and Transformation Fund, which is financed, among other things, by the revenue from CO₂ pricing.

Applications will be processed according to the date of new registration, retroactively from January 1, 2026. The necessary online portal is still under development, but is expected to be available from May 2026. What needs to be submitted there, unlike its opening date, is, in principle, already known. The sooner an application is submitted, the sooner a decision can be made. Therefore, you can start creating the necessary prerequisites for a successful application at the latest now.

Access to the portal and general proof

Identification via BundID is a prerequisite for accessing the portal. For further processing, an ELSTER certificate or an activated online ID card (eID) is also required. Only then can the necessary documents for the application be submitted digitally.

• These are the last two current income tax assessments of the applicant and their spouse or partner living in the household, or partner in a similar de facto union, the oldest of which must not be more than three years old. For jointly assessed couples, the joint income tax assessments for both partners for the past two tax years are sufficient. The average taxable income from the last two tax assessments can then be used.
• For offspring that count towards the amount of funding, the child benefit proof from the family benefits office must be uploaded.
• If a PHEV is to be subsidized, its EU certificate of conformity must also be submitted as proof of its eligibility for funding, as such cars must not emit more than 60 grams of CO₂ per kilometer or must have an electric range of at least 80 km.

Who is eligible to apply?

• Individuals and households with a total income of 80.000 Euros before tax. It is irrelevant whether the income comes from permanent employment, self-employment, side jobs, parental allowance, Bafög, basic security, mini-jobs, pensions, or other income, or a combination of several of the aforementioned benefits. The same applies to de facto unions whose combined income falls below this limit.
• The e-car funding can only be granted once per applicant and thus per holder. Funding for multiple vehicles for the same person is excluded.
• However, within the same household, each eligible person can receive the funding. For two adults with a common primary residence, a de facto union is assumed by default, even if they are not married and do not have a registered partnership. Proof that they are permanently living separately must then be credibly demonstrated by means of a so-called self-declaration if necessary.
• Members of shared housing communities (Wohngemeinschaften) who are assessed separately for tax purposes can each individually apply for the vehicle registered in their own name. WGs are therefore not considered a "household" in this sense.
• Foreign nationals are also included, as long as they have their primary residence in Germany. Germans with primary residence abroad are excluded.

How do children affect the amount?

For the premium to be counted, a child must be a minor and eligible for child benefits at the time of the car's new registration. This also applies to foster and adopted children. If the child lives in multiple households according to the so-called "Wechselmodell" (shared custody model), the household to which the child benefit is transferred will receive the funding.

What applies to purchase and sale?

• The applicant and the vehicle holder must be identical. The subsidized vehicle must remain registered in Germany in the owner's name for at least 36 months. If the vehicle is sold before this period or registered abroad due to a move, the funding must be repaid.
• Only new cars are eligible for funding. Subsidies are no longer possible after pro forma registrations to dealers, so-called day registrations. If the new car was purchased abroad, the funding can be applied for without restriction upon first registration in Germany.
• Car dealers may apply for the funding on behalf of their customers, but only with their authorization.

Regarding used cars, heise/Autos asked the BMUKM: "Subsidies for used cars are not part of the funding starting in 2026. After the funding begins, we will continuously review possible changes to the program."

What else could change?

1) Stricter conditions for PHEVs

From early 2026 to mid-2027, PHEVs and those with range extenders are eligible for funding if their CO₂ emissions do not exceed 60 g CO₂/km or their electric range is at least 80 kilometers. From mid-2027, these values could be replaced by CO₂ emissions in real-world operation. This potential tightening is currently still under review by the federal government.

2) Limiting funding to cars produced in the EU

An exclusive funding of EU vehicles does not seem necessary at present; the ministry points out that around 80 percent of newly registered electric cars in Germany today are produced in Europe. Nevertheless, EU preference rules are currently under review, as it is possible that the situation could shift so drastically that exclusive funding of European cars would seem sensible. The Federal Ministry for the Environment wants to provide information in good time so that those eligible for funding can make timely decisions. The current background is the "Industrial Accelerator Act" proposed by the EU in March, a legislative package that aims to include European electric cars in public funding programs, alongside CO₂-low products such as steel, cement, aluminum, and clean tech. However, it usually takes years for such proposals to become law.

(fpi)