VDA President Hildegard Müller regarding Immediate Investment Program

"The draft legislation for the immediate investment program sends important signals for investments in electromobility. The planned tax incentives for promoting electric vehicles can provide valuable and sustainable impetus for the market development of e-mobility. In particular, the planned 75% depreciation in the year of purchase of an electric business vehicle can provide effective support here. It is expressly welcomed that these depreciation options will also apply to electric commercial vehicles. From the VDA's perspective, the general tax framework for leasing electric vehicles should also be improved.

We also welcome the increase in the cap on the gross list price for company car taxation for pure electric vehicles. Company cars are an important driver of e-mobility in Germany. This measure will also strengthen the used car market for pure electric cars, as company cars will be available as used cars at a favorable price after the lease period expires.

In general, good framework conditions with charging and H2 refueling infrastructure and affordable charging prices are crucial for the ramp-up of electric vehicles. Therefore, the reduction in the electricity tax rate announced in the coalition agreement must be implemented promptly. The following principle must apply to further purchase incentives promised in the coalition agreement: A prolonged debate about subsidy measures leads to purchasing reluctance, so consumers need rapid clarity about potentially intended measures.

Also important: The coalition partners must now promptly extend the current vehicle tax exemption for electric cars until 2035, which they agreed on in the coalition agreement.

In addition to the measures in the area of e-mobility, the immediate investment program provides further relief for companies. The planned expansion of the research allowance is an important step that should be implemented promptly. However, it would be desirable to further strengthen the research allowance by increasing the funding volume, raising the funding rate to an internationally comparable level of at least 30% for all companies, and simplifying the application process.

The investment booster regulation (declining balance depreciation) for movable fixed assets manufactured or acquired from June 30, 2025, is also fundamentally positive. However, retroactive application to the entire year 2025 would be appropriate. The reduction in the corporate tax rate, as announced in five steps starting in 2028 by one percentage point each, is clearly too late given international competitive pressure. In addition to the measures provided for in the immediate action program, further structural reforms, particularly in the area of corporate taxation, are urgently needed to strengthen the international competitiveness of the location.

Despite the above-mentioned suggestions for improvement, it is now important that the immediate investment program is adopted without delay in the parliamentary process."