Overview

• The plan allows companies to depreciate up to 30% of eligible investments between July 2025 and December 2027 under a temporary ’investment booster’.
• Corporate tax will fall in five annual steps from 15% to 10% between January 2028 and 2032 to provide long-term planning certainty.
• Businesses purchasing electric vehicles can write off 75% of the cost in the acquisition year, with declining allowances over the subsequent five years.
• Revenue losses are projected to grow from €630 million in 2025 to €17 billion by 2029, affecting federal, state and municipal budgets.
• The cabinet is set to debate the proposal on Wednesday, with final parliamentary approval slated for after the summer recess.