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Germany Reinstates EV Purchase Bonus With Retroactive Coverage

Applications are expected in May to close a short window of uncertainty.

Overview

  • The Bundestag, which approved the law Friday, confirmed subsidies apply to vehicles first registered after January 1, 2026.
  • Households can receive €1,500 to €6,000 based on vehicle type, taxable income, and number of children, with higher amounts for full battery-electric cars than for plug‑in hybrids.
  • The online application portal is not live yet and is expected in May, and a Bundestag note says buyers remain eligible even if they signed the sales contract before applying.
  • Consumer and legal advisers urge buyers to check model eligibility and ensure contract details match the application because errors could void payments once the portal opens.
  • The measure passed with Union and SPD votes over opposition from Greens, Linke, and AfD, drew criticism for including plug‑in hybrids, and is estimated by ADAC at roughly €3 billion to support about 800,000 vehicles after a 2024 sales dip following the prior subsidy’s abrupt end.