Overview
- Lawmakers approved the extension on 4 December with broad coalition backing, while the AfD was the only parliamentary group to vote against it.
- The coalition projects roughly €1 billion in foregone revenue from the longer tax break.
- Because the relief ends on 31 December 2035, a vehicle first registered on 31 December 2030 would receive five years of exemption, creating a timing incentive for earlier registration.
- The government plans to reintroduce purchase incentives for private buyers, with reports that plug-in hybrids could be included, prompting pushback from environmental groups and support from industry associations.
- Berlin also intends to seek EU-level flexibility on the 2035 combustion-engine restrictions, a move welcomed by automakers that argue for transitional powertrains.