Hildegard Müller, Präsidentin des Verbandes der Automobilindustrie e.V., Verband der Automobilindustrie e. V. Foto: VDA
Following the abrupt end to state subsidies in December 2023, sales of e-cars plummeted. In July, the traffic light coalition agreed on a “growth initiative” as part of the budget negotiations. The German government wants to boost the sluggish sales of electric cars with new tax benefits. Specifically, this involves stronger tax incentives for e-cars as company cars. The cabinet recently launched the planned measures. In the draft bill submitted to the German Press Agency, it states that the federal government has set itself the goal of significantly advancing electromobility in Germany. One of the measures is tax incentives for e-cars as company cars. Retroactive to July 1, 2024, a special depreciation allowance is to be introduced for companies for newly registered fully electric and comparable zero-emission vehicles. In addition, the so-called cap on the gross list price for company car taxation for e-vehicles is to be raised from 70,000 euros to 95,000 euros.
VDA President Hildegard Müller on tax incentives for e-cars:
“We welcome the measures adopted by the Federal Cabinet to strengthen e-mobility. This is an important and correct signal that is urgently needed, especially in view of the abrupt discontinuation of the environmental bonus at the end of last year and the current weaker demand for electric vehicles. In particular, the increase in the assessment basis for the reduced company car tax (from 70,000 euros to 95,000 euros) for purely battery electric vehicles will help to accelerate the ramp-up of e-mobility in Germany. As a result, the used car market for fully electric cars will also be strengthened, as company cars will be available as used cars at a favorable price at the end of the leasing period, which is usually three years. The planned introduction of accelerated depreciation for newly registered all-electric vehicles for companies can also support the ramp-up of electromobility. It is now important that the Bundestag and Bundesrat swiftly adopt the new measures in the parliamentary process. Lengthy negotiations, delays and a watering down of the package, as with the Growth Opportunities Act, must be avoided. The federal states must also make a clear commitment to promoting e-mobility so that value creation and jobs can be secured in Germany.”
