Federal government brings investment boosters for electric trucks and tax relief!

Federal government brings investment boosters for electric trucks and tax relief!

On June 9, 2025, the Federal Cabinet decided on an important immediate tax investment program that is intended to strengthen the competitiveness of Germany as a business location. The focus is particularly on tax relief and the promotion of electromobility in the area of ​​commercial vehicles. The measures are designed to offer companies incentives to invest and thus make Germany a future-proof business location. Federal Finance Minister Lars Klingbeil emphasizes that this program is crucial for job creation and the country's economic strength. The bill is already making its way through the legislative process, with a hearing in the Finance Committee of the Bundestag on June 23, 2025 and the planned adoption in the Bundestag on June 27, 2025 and the approval of the Bundesrat on July 11, 2025, as trans.info reported.

The immediate tax investment program includes several central measures that are primarily intended to promote electromobility. A key component is the introduction of a new, declining-balance depreciation (Depreciation) for movable assets, also known as an “investment booster”. This includes significant depreciation of 75% in the year of purchase for newly acquired all-electric vehicles purchased between July 1, 2025 and December 31, 2027. The depreciation period extends over six years and is gradually reduced to 2% at the end. But this regulation only applies to new, battery-electric vehicles, which also include electric trucks, electric vans and buses.

Promotion of electric vehicles

Another crucial step is raising the gross list price limit for the taxation of electric company cars to 100,000 euros, which represents an increase from the previous 70,000 euros. Higher-quality electric vehicles continue to benefit from the 0.25 percent rule, provided they are operated purely electrically. The Association of the Automotive Industry (VDA) welcomes these measures as important progress for electromobility and especially for commercial vehicles, but points out the need for additional measures. These include, among other things, improved tax treatment of leasing contracts as well as the extension of the vehicle tax exemption for electric vehicles until 2035 and the reduction of the electricity tax rate.

In addition, the law provides for corporate tax to be reduced in several stages from 2028 from the current 15% to 10% by 2032. This means that the total tax burden for companies will fall to just under 25% by 2032. This goal is in line with the intention to get Germany back on a growth path and to create timely planning security for investment decisions, such as bundesfinanzministerium.de explained.

The federal government emphasizes that the expansion of research funding is also part of the program. For this purpose, the assessment basis for the tax research allowance will be increased from 10 million euros to 12 million euros for the period from 2026 to 2030. This initiative aims to not only strengthen electromobility, but also to promote the research landscape as a whole.