Advancing e-mobility: subsidies and tax aspects

E-mobility currently appears as a basic building block for the turnaround in energy policy in order to sustainably reduce environmental pollution. The available range covers e-bikes, electric motorbikes, e‑cars, e-buses and e-trucks. With regenerative/renewable solutions for electric energy, e-mobility should become low-emission; traffic-related emissions and air pollutants as well as noise could decrease and ultimately reduce the dependency on fossil fuels.

The legislator is therefore promoting a transition to e-mobility with subsidies and tax benefits. The most important measures and their consequences are presented in the PDF below.

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Content

I. Grants

1. Environmental bonus and innovation premium
2. Commercial and income tax treatment of grants

II. Tax incentives

1.Income tax

a) Commercial electronic utility vehicles or bicycles: special depreciation pursuant to § 7c EStG
b) Private use of company electric and hybrid electric vehicles
c) Tax exemption for electric charging (§ 3 No. 46 EStG)
d) Tax exemption for an electric bicycle (§ 3 No. 37 EStG)
e) Reimbursement of expenses for electricity costs (§ 3 No. 50 EStG)
f) Additionality criterion

2. Trade tax
3. VAT
4. Motor vehicle tax