German SPD party wants to introduce tax incentives for EVs made in Germany

In its election manifesto, the SPD is campaigning for tax incentives to boost electric car sales. The incentives should only benefit electric cars ‘made in Germany’. The Social Democrats are also in favour of better depreciation conditions and changes to company car taxation.

The SPD is switching into election campaign mode and also has proposals for reactivating the electric car market up its sleeve. This was reported by the German Handelsblatt newspaper and the Reuters news agency with reference to the SPD’s election programme already available to them. According to the programme, a “temporary tax deduction” is to be introduced to promote the purchase of electric cars produced in Germany. “This is simple and straightforward to implement: buy it, declare it for tax purposes and receive the subsidy directly into your account,” reads a passage in the programme. According to the SPD, the EU Commission should be brought on board to the extent that it should “present a corresponding initiative for the entire European Union in the short term or authorise such a German solution.”

The incumbent chancellor’s party also considers changes to depreciation rules and company car taxation for electric cars to be further levers. However, she is not yet going into detail here. However, the motor vehicle tax exemption for electric cars is to be extended until 2035 in any case. The SPD is also committed to the plans to improve research funding again and to help the hydrogen economy get back on its feet.

In other passages of the election programme, the SPD also outlines its broader industrial policy. For example, the debt brake is to be loosened, allowing the federal and state governments to invest more again. In contrast to the CDU/CSU and FDP, who are seeking general tax cuts for companies, the SPD wants to help the sluggish economy with ‘targeted’ support for companies. Specifically, a ‘Made in Germany’ investment premium and a Germany fund are to be introduced. The latter is intended to mobilise public and private capital in order to boost investment, for example in the nationwide charging network.

The SPD want to adopt and present their election programme on Tuesday. Other parties have already presented some of their eMobility proposals: Green chancellor candidate Robert Habeck, for example, is putting together a package to help “modernize the German automotive industry.” The Green party wants to give buyers of electric cars a charging credit for publicly accessible charging points, but also utilise tax incentives.

handelsblatt.com (in German), reuters.com