Tax relief for companies: The traffic light coalition is committed to measures to stimulate the German economy.

Tax relief for companies: The traffic light coalition is committed to measures to stimulate the German economy.

According to a report by www.t-online.de, the Bundestag passed the Growth Opportunities Act to stimulate the German economy. The law provides tax relief of seven billion euros for companies and was approved by the votes of the traffic light factions SPD, Greens and FDP despite criticism from the CDU/CSU, the Left Party and the AfD.

The tax relief should amount to seven billion euros annually and apply until 2028. The key points of the law are a bonus for investments in climate protection, tax incentives to promote housing construction and additional tax incentives for research purposes. In addition, companies' energy efficiency measures should be subsidized with direct financial support.

Despite its adoption in the Bundestag, the Bundesrat's approval is on shaky ground, as the states criticize that they and the municipalities have to bear two-thirds of the tax relief. It is expected that the law will go to the mediation committee of the Bundestag and Bundesrat.

As a financial expert, one must analyze the impact of this law on the market and the financial industry. The tax relief could help companies increase their investments and thus stimulate economic growth. However, the criticism from the states and the uncertainty regarding approval by the Federal Council could lead to uncertainty and reluctance in the economy. It is therefore advisable to keep an eye on further developments in order to be able to accurately assess possible effects on the financial market.