Parliament Slammed Through "Economic Revitalization" Bill
German parliament endorses stimulus package
Gear up, folks! The German Parliament is set to greenlight the federal government's "Economic Revitalization" package on Thursday morning. This move is aimed at pumping new life into Germany's economic scene by encouraging growth through strategic investment incentives.
The "Economic Revitalization" package is pretty impressive, chock-full of enticing measures. Here's a sneak peek at what's in store:
- At the heart of this revitalizing package is an expedited depreciation plan, letting businesses depreciate a whopping 30% of their equipment investments each year. This benefit applies to movable fixed assets acquired or manufactured from July 1, 2025, to December 31, 2027. Normally, equipment depreciation takes place over the asset's useful life, but this package offers a speedier write-off, providing immediate tax relief and boosting investment across the board.
- Did someone say electric vehicles (EVs)? The package includes a special depreciation scheme exclusively for EVs, designed to motivate fleet updates and corporate adoption of electric mobility.
- The package comes with other fiscal goodies, including steep cuts in corporate tax burdens, lower energy and electricity bills for businesses, and supportive measures for SMEs and start-ups specializing in futuristic sectors like electromobility and renewable energy infrastructure.
- And here's a sweetener for company electric vehicles: the gross list price limit for their taxation is hiked from €70,000 to €100,000 for EVs purchased after June 30, 2025. This tweak makes electric company cars more tax-friendly, giving the pricier EVs a tax edge.
The Bundesrat still has to give its approval in a meeting scheduled for July 11—considered a formality, as promised compensation to the states and municipalities for anticipated tax losses is part of the deal.
In addition to the "Economic Revitalization" package, several other bills and measures are also up for approval on Thursday: an extension of the deadline for Kita expansion funding, a couple of bills detailing data handling by the Federal Criminal Police Office, an extension of the rent cap, an amendment to the Telecommunications Act to boost broadband and mobile networks expansion, and a delay in the implementation of new regulations for animal husbandry labeling.
Rejoice, Germany! The revitalization package is coming to town. Let's hope for a prosperous future!
[1] ntv.de, AFP[2] OECD[3] The Telegraph[4] Germanwatch[5] ABI[6] Wirtschaftswoche[7] Handelsblatt
The "Economic Revitalization" package, aimed at stimulating growth and investment, includes an employment-focused policy that offers expedited depreciation for business investments in movable fixed assets from July 2025 to December 2027. Moreover, the finance minister, in considers the package, might find appealing the proposed investments in business sectors, such as electric vehicles and renewable energy infrastructure, that fall under the employment policy.
