Bundestag passes investment booster: An upswing for Germany!

Bundestag passes investment booster: An upswing for Germany!

On Thursday, June 26, 2025, the Bundestag will adopt a comprehensive package of federal government measures aimed at improving the economic situation in Germany. The draft law provides tax relief for companies and provides new incentives for investments. The meeting starts at 9:00 a.m.

A central element of the package is an immediate tax investment program that offers a relief volume of 2.5 billion euros in the current year. This plan, which is supported by the coalition factions of the CDU/CSU and SPD, provides for further relief of 8.1 billion euros in the coming year as well as 11.8 billion euros in 2027, 12 billion euros in 2028 and 11.3 billion euros in 2029. stern.de reports that the Federal Council must approve the package at its meeting on July 11th, but this is considered a formality.

Details of the bill

The draft law includes various measures to strengthen Germany as a business location. This includes reintroducing and increasing the declining balance depreciation options to 30 percent for movable assets. In addition, the corporate tax rate will be reduced from 15 percent to 10 percent from 2032, starting on January 1, 2028. For partnerships, the tax rate on retained profits will fall in three steps from 28.25 percent to 25 percent.

Further measures include greater tax support for electric vehicles and the expansion of the tax allowance for research. These changes are intended to particularly help small and medium-sized companies that are under pressure due to the uncertain economic situation. bundestag.de highlights that the federal government has also promised the states and municipalities compensation for the expected tax losses in order to reduce their financial burden.

Other bills

In addition, other laws will also be decided during the meeting. This includes an extension of the funding period for daycare expansion as well as two laws on how the Federal Criminal Police Office handles data. The extension of the rent cap and changes to the Telecommunications Act to accelerate the expansion of broadband and mobile networks are also on the agenda. The entry into force of new requirements for animal husbandry labeling will also be postponed.

These diverse measures reflect the Federal Government's desire not only to promote economic stability, but also to create long-term framework conditions that can attract investment and secure jobs.