Electric cars in a tax frenzy: 75% deduction for buyers from July 2025!

Electric cars in a tax frenzy: 75% deduction for buyers from July 2025!

The federal government is planning far-reaching tax incentives to encourage the purchase of electric cars. How wochenblatt.de reported that buyers of a new electric car can deduct up to 75% of the cost from tax in the year of purchase. This regulation applies to purchases made between July 2025 and December 2027.

After the first year of purchase, 10% of the costs can be deducted. In subsequent years, the possible deductions decrease: 5% in the second and third years, 3% in the fourth year and 2% in the fifth year. This initiative is part of the “Law for an immediate tax investment program to strengthen Germany as a business location”, which not only promotes electromobility.

Additional measures and support for companies

The tax benefits are not just limited to private buyers; insideevs.de highlights that the new measures are also strongly targeted at commercial users. This is intended to support the automotive industry and its employees in switching to e-mobility. Companies must be able to claim investment costs for newly registered, zero-emission vehicles more quickly for tax purposes.

An important component is also the new special depreciation, which makes it possible to write off purchases over six years at a rate of 40%. This regulation is limited to purchases between July 2024 and December 2028.

Another step to promote electromobility is the expansion of company car taxation for electric vehicles. The tax advantage for employees who use an electric company car privately is reduced, and the maximum limit for the gross list price has been raised from 70,000 euros to 95,000 euros. This new regulation applies to company cars purchased from July 2024.

Long-term goals of the government

Finance Minister Lars Klingbeil announced the “investment booster”, which applies not only to the e-car market, but also to companies as a whole. Movable goods, such as machines, should be tax deductible at up to 30% in the period from 2025 to 2027. The government also plans to reduce corporate tax from the current 15% to 10% in 2032 in order to give companies long-term planning security.

These comprehensive measures aim to promote investments in Germany and expand tax support for research in order to further strengthen research and development. The final resolutions on the measures already mentioned are planned for November 2024, and the approval of the Bundestag and Bundesrat is required in order to implement these far-reaching changes.