New Subsidy for Electric Cars

New subsidy for electric cars

The business use of electric vehicles is currently subsidized for tax purposes in such a way that only one percent of one quarter, effectively 0.25%, of the domestic gross list price has to be taxed as a private use share when determining the amount of private use withdrawal (Section 6 (1) no. 4 sentence 2 no. 3 of the German Income Tax Act/EStG). However, according to the current legal situation, this only applies if the gross list price of the vehicle does not exceed € 70,000.00.

Higher gross list price

The federal government has now included an increase in the value threshold to €95,000 in the Tax Advancement Act, which is currently in the legislative process. The €95,000 threshold is intended to apply to electric vehicles purchased from July 2024 onward.

Planned special depreciation

Emission-free electric vehicles purchased between July 2024 and December 2028 are also to be depreciated over a period of six years, starting with a depreciation rate (AfA) of 40%.