Extended e-car subsidy: German government relies on tax breaks
The German government has launched two new e-car subsidies. However, after the end of the environmental bonus, only commercial users will benefit.
A BMW i5 eDrive40 (test) can easily cost 80,000 euros or more. This means that the owner of such an expensive car can also benefit from tax relief. It now extends up to 95,000 euros.
(Image: Florian Pillau)
The end of state purchase subsidies initially caused new registrations of electric cars to plummet and then stagnate. This does not fit in with the climate targets of the government and the EU. In order to get more battery-powered electric cars back on the road, the government is introducing new fiscal regulations to subsidize and reduce the purchase price of electric vehicles. However, there will still be no state money for private customers: Last year, the so-called "environmental bonus" very surprisingly prematurely cashed in on the Federal Constitutional Court's budget ruling.
Background to the new registrations
Elektroautos: Neuzulassungen unterhalb der Zielmarke
Package of measures to accelerate growth
However, some tax breaks remain in place. Among other things, new electric cars are exempt from vehicle tax until the end of 2030. A planned package of measures to accelerate growth includes further subsidies. It is part of the 2025 federal budget, which the governing coalition under Economics Minister Robert Habeck of the Greens negotiated for months with Federal Chancellor Olaf Scholz (SPD) and Finance Minister Christian Lindner (FDP).
With retroactive effect from July 1 and initially until the end of 2028, companies will be able to benefit from a special depreciation permission for newly registered battery electric and comparable zero-emission vehicles. The upper purchase price limit for the gross list price of e-vehicles, also known as the "0.25 percent rule", will also be raised again to EUR 95,000. It was only in March that the government raised this limit from 60,000 to 70,000 euros with the so-called "Growth Opportunities Act".
The government hopes that all measures will make electric cars "significantly more attractive". Habeck spoke of a "demand push", specifically for the car industry. He could be right, at least the 0.25 percent regulation has proven itself over the past few years. However, they are unlikely to significantly accelerate the increase in electric cars on our roads. Above all, this would require honest information work to better address hesitant potential buyers.
(fpi)