The German government withdrew incentives for plug-in hybrids at the end of 2022 and has phased them for private buyers of battery EVs on Sept. 1, 2023. Over the next two years incentives will also go for fleet buyers.
Until then, the government temporarily contributed an “innovation bonus” of up to €9,000 to each purchase for BEVs and fuel cell EVs priced up to €40,000, and €7,500 for those priced over €40,000. EVs are still immune from vehicle taxes for up to 10 years.
Another tax bonus is also offered based on the car’s battery size. The list price of the car is discounted by €200 per kilowatt-hour battery capacity, and the discount applied for up to €10,000 in 2019, lessening the list price as well as the amount due for income tax. This total is reduced each year by €50 and is expected to apply until 2022, although extensions may be possible.
In 2020, the German government passed a bill that will abolish the vehicle tax for EVs by the end of 2030. The bill also supports a transition to electric fleets for German organizations, and wants to increase the demand for electric buses. It also mandated that every gas station in the country include electric charging stations.
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