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Bundestag Extends EV Car Tax Break With 2035 Cutoff

The government plans to reintroduce purchase incentives next.

Overview

  • EVs first registered by 31 December 2030 remain exempt from motor-vehicle tax for up to ten years, with all exemptions ending on 31 December 2035.
  • A vehicle registered at the end of 2030 would receive only five years of relief because of the fixed cutoff date.
  • The governing coalition estimates about €1 billion in lost revenue from the change, and AfD was the only parliamentary faction to vote against it.
  • Industry groups praised the measure as an effective purchase incentive, while environmental organizations criticized possible inclusion of plug-in hybrids in future grants.
  • Berlin also plans to press the EU for flexibility on the 2035 rule requiring zero CO₂ from new cars to allow certain mixed powertrains.