Innovation premium for the purchase of electric vehicles: supporting the transition to electric
The German government wants to facilitate the transition to electric mobility: This applies as much to ordinary consumers buying an electric vehicle as it does to companies using entire fleets. This is why the “eco-bonus” was introduced previously. Under the stimulus package, this bonus will be doubled and paid out as an “innovation premium”. For example, this would translate into the following: For a limited period up to 31 December 2021, the federal government would double its contribution from €3,000 to €6,000 when an electric vehicle with a list price of up to €40,000 is purchased. For electric company cars, the maximum price is raised from €40,000 to €60,000, with tax set at 0.25%.
Taking electric mobility to the streets thanks to expanded charging infrastructure
If you want to travel through Germany in an electric car, you need to be able to rely on finding enough charging stations. Expanding the charging infrastructure is a necessary requirement for advancing e-mobility in Germany. For this reason, the stimulus package makes equal provisions for expanding the network of reliable, modern charging stations as well as for promoting research and development in the area of electric mobility. A standardised nation-wide payment system for charging stations is to be put in place soon. Additional investments of €2.5 billion will be put towards this goal.
A carbon-emissions-based motor vehicle tax: rewarding climate-friendly mobility
The future of mobility depends on the use of climate-friendly sources of energy that produce as few emissions as possible. With this in mind, motor vehicle tax will in future be based on a car’s carbon emissions. This means that low-emission vehicles will be subject to lower tax. Taxes for newly registered vehicles will be based on their carbon emissions per kilometre; for vehicles emitting over 95g CO2/km, taxes will increase in tiers. The ten-year motor vehicle tax exemption for fully electric vehicles, which has already been put into effect, will be granted until 31 December 2025 and extended until 31 December 2030. With these policies, the German government is sending a clear signal of support for zero-emission vehicles and sustainable mobility.
A bonus programme for the automotive industry: incentivising investments in the future
Advances in new technologies, processes and installations create the jobs of tomorrow. This is why we need manufacturers and suppliers in the automotive industry to innovate and invest. To promote exactly that, the federal government has put in place a bonus programme of €2 billion, which will give businesses that invest in the future targeted support in 2020 and 2021.
Vehicle fleet replacement programmes: supporting electric mobility on the road
Social service providers travel a lot and need affordable transport. This means that they can make a substantial contribution to lowering emissions from road traffic. To help them make the switch to electric mobility, the federal government has created the vehicle fleet replacement programme “Social & mobile”. The programme will run in 2020 and 2021 and is designed to promote electric mobility in towns and cities. The programme has a total of €200 million at its disposal. Another programme to promote the switch to electric mobility among small and medium-sized enterprises such as craft and trade businesses is also currently being prepared.
Modernising buses and HGVs for climate-friendly public transport
Public transport operators are also gradually incorporating environmentally friendly vehicles into their fleets. To accelerate this process, the federal government is investing in a programme to modernise bus and HGV fleets. Under the provisions of the stimulus package, funding for electric buses and their charging infrastructure will be increased to €1.2 billion. The programme will run until the end of 2021 and will be available to private-sector and local government transport operators.
Replacement programme for HGVs: making the roads of Europe more climate-friendly
Sustainable mobility is an issue of European significance and is especially important for transport companies. For this reason, the federal government is pressing for the swift adoption of an EU-wide “HGV fleet replacement programme 2020/21” that aims to promote future purchases of HGVs that meet the latest Euro VI emission standard: The programme would provide for a €15,000 subsidy for the replacement of Euro V HGVs with Euro VI HGVs. In the case of Euro III and Euro IV HGVs, the replacement subsidy would be €10,000. These subsidies would aim to promote more climate-friendly HGVs on European roads.
Extra equity for Deutsche Bahn: a sustainable move for Germany
Travelling by train is particularly environmentally friendly. Even before the pandemic, the German government supported Germany’s main railway company Deutsche Bahn in its efforts to advance the expansion, modernisation and electrification of its railway network. Under the Climate Action Programme 2030, the federal government is already providing an annual €1 billion in additional equity to Deutsche Bahn between 2020 and 2030. In light of the pandemic-related revenue losses, the stimulus package is expanding this financial support. Deutsche Bahn will receive additional equity of €5 billion from the federal government to keep Germany on track for a sustainable future.