Turbo depreciation: Companies can invest now until July!

Turbo depreciation: Companies can invest now until July!

The federal government is planning to introduce turbo depreciation for movable assets. This project aims to enable companies to claim investments for tax purposes more quickly. According to the German craft newspaper This regulation is expected to come into force from July 1, 2025 to December 31, 2027.

Companies should plan their investments in movable goods by July 1, 2025 at the latest to benefit from the new regulation. Before this date, acquisition costs can only be depreciated using the straight-line method. However, turbo depreciation only applies to movable assets such as furniture, machinery and vehicles, while real estate, goodwill and customer data can still only be depreciated on a straight-line basis.

Details about the depreciation rule

The introduction of declining balance depreciation means that companies can immediately claim up to 30% of the acquisition or production costs for tax purposes. For investments made during the year, declining balance depreciation is granted proportionately. A practical example shows: If a craft business buys a machine for 30,000 euros (net) on July 10, 2025, it can deduct 4,500 euros in the first year, which corresponds to a depreciation of 30% over six months.

The advantages of this regulation are obvious. Compared to linear depreciation, which only yields 1,500 euros in the first year and 3,000 euros in the second year, the declining balance method enables significantly higher depreciation in the first few years. This leads to faster tax relief for companies.

Tax policy measures in the coalition agreement

The coalition agreement of April 9, 2025 sets the tax policy direction of the new federal government. A central focus is on creating tax relief for companies and private individuals, investment incentives and strengthening local finances. Loud Ecovis KSO The government is also aiming to reduce bureaucracy and close tax loopholes.

Specifically, the coalition agreement stipulates that corporation tax will be reduced by 1 percentage point annually from 2028, so that an overall reduction of 5 percentage points is planned by 2032. In addition, the aim is to increase the minimum trade tax rate from 200% to 280% in order to strengthen municipal finances.

Further changes in the area of ​​income tax are also planned. In particular, small and medium incomes should be relieved in the second half of the legislative period. These measures also include the automatic linking of child benefit and child allowance as well as an increase in the relief amount for single parents.

With the introduction of turbo depreciation and other tax policy measures, the federal government is underlining its intention to improve the economic situation for companies and stimulate investment. These reforms could be crucial for the competitiveness of the German economy in the coming years.