The German government has agreed on the budget for 2025 and has integrated measures to promote electric mobility. Economics Minister Robert Habeck announced the introduction of a special depreciation allowance for electric vehicles to give the automotive industry an additional boost and support the climate targets.
Special depreciation as an incentive for companies
As part of the "growth initiative", companies are to be given the opportunity to write off electric vehicles in their fleets against tax. This measure is intended to motivate self-employed people and companies in particular to make greater use of electric vehicles. This special tax depreciation enables companies to capitalize a higher proportion of the acquisition costs right at the beginning of the vehicle's useful life to reduce their tax liability.
Economics Minister Habeck emphasized at a press conference: "There is a special depreciation allowance for electric vehicles. The automotive industry, which has been waiting for a boost, will get another push from our decisions. The climate can do with that, the German automotive industry can do with that."
Extended tax incentives
The special depreciation allowance will be introduced retroactively from July 1, 2024 and will apply to newly registered fully electric and comparable zero-emission vehicles until the end of 2028. In addition, the gross list price for company car taxation of e-vehicles will be increased from the previous 70,000 euros to 95,000 euros. This should further increase the attractiveness of electric vehicles as company cars.
Background and objectives
Following the expiry of state subsidies for the purchase of electric cars, the number of new registrations has fallen significantly. With the new measures, the German government wants to reverse this trend and boost demand for electric vehicles again. A total of around 100 billion euros is available for investment spending, including funds from the Climate and Transformation Fund and subsidies to ease the burden of electricity prices.
Conclusion
The introduction of the special depreciation allowance and the increase in the cap on the gross list price for company car taxation are key elements of the new growth initiative. They are intended to further promote electromobility in Germany and contribute to the climate targets. While the direct effect on electromobility remains to be seen, the German government is sending a clear signal for the future of e-mobility with these measures.
These steps illustrate the German government's intention to support the automotive industry and promote environmentally friendly technologies at the same time. It remains to be seen what effect these measures will have on the market and the acceptance of electric vehicles.
