Overview
- The measure would keep newly registered or converted battery-electric cars free of motor vehicle tax through 31 December 2030, with relief lasting up to ten years but ending for all vehicles by 31 December 2035.
- The government intends the change to take effect on 1 January 2026 to avoid a lapse in the current scheme, pending passage in the Bundestag.
- A separate €3 billion purchase-support program targeted at lower- and middle-income households is planned to run until 2029, financed by the Climate and Transformation Fund and the EU Social Climate Fund.
- An existing corporate “Investitionsbooster” allows companies to deduct 75% of the purchase price of eligible electric cars up to €100,000 in the year of acquisition.
- The Finance Ministry projects foregone revenue of about €50 million in 2026, rising to roughly €370–380 million by 2030, as EV registrations climb yet surveys show only 16% of drivers would choose a fully electric car.