Overview

• The proposal keeps newly registered pure EVs eligible for up to 10 years of Kfz‑tax relief, with all exemptions ending no later than December 31, 2035.
• Without the change, the break would lapse for first registrations from January 1, 2026, effectively ending the incentive for new battery‑electric cars.
• Klingbeil said he will present a draft law to amend the Kraftfahrzeugsteuergesetz, moving the measure into the formal legislative process.
• The finance ministry estimates federal revenue losses of up to several hundred million euros over the coming years.
• The plan is framed as one element of a broader package to be discussed at Thursday’s Automobildialog hosted by Chancellor Friedrich Merz, following industry calls from the VDA to secure the exemption.