Tax Cuts as Part of the Immediate Investment Program
Federal Minister of Finance Lars Klingbeil plans comprehensive tax cuts for companies, amounting to a total of 17 billion euros by 2029. These measures are part of a draft law known as the “tax investment immediate program to strengthen Germany as a business location” and are based on agreements in the coalition treaty between the Union and the SPD.
Measures and Effects
Investment Booster
Special Depreciations: Companies can utilize special depreciations of 30 percent for investments made between June 30, 2025, and January 1, 2028. These measures are intended to promote investment activity and strengthen the competitiveness of the German business location.
Reduction of Corporate Tax
After the three years with special depreciations, a reduction in corporate tax is planned to enhance Germany’s attractiveness as a site for investment in the long run.
Depreciations for Electric Cars
New depreciations for electric cars are intended to encourage companies to invest in environmentally friendly technologies.
Impact on Investors and Economic Policy
Investors: The measures could attract investors as they increase the profitability of investments in Germany. More investments in research and development could strengthen the country’s innovative power.
Economic Policy: These steps are part of a comprehensive economic policy aimed at positioning Germany as an attractive location for companies. The promotion of electric cars also emphasizes environmental friendliness.
Overall, these measures aim to strengthen the German economy and make the location more attractive for investors.