Purchase grant for private buyers of electric vehicles ("Innovationsprämie")
In order to accelerate the shift toward direct zero-emission vehicles, the Federal Government has doubled the share of the state-funded buyer's grant for electric vehicles until the end of 2021, a so called "innovation bonus" ('Innovationsprämie") that supplements the environmental bonus already in place since the launch in 2016 of the National Development Plan for Electric Mobility and extended until the end of 2025 . Plug-in hybrid electric vehicles and hybrid and fully electric second-hand vehicles also benefit from this premium under certain conditions, while combustion engines are excluded. The subsidy rates for electric vehicles with a net list price of less than 40'000 euros are up to 9'000 euros for a purely electric drive (battery electric or fuel cell vehicle) and up to 6'750 euros for a hybrid electric vehicle that can be charged externally (plug-in hybrids). The subsidy rates for electric vehicles over 40'000 euros net list price are up to 7'500 euros for a purely electric drive (battery electric or fuel cell vehicle) and up to 5'625 euros for a hybrid electric vehicle that can be charged externally (plug-in hybrids). For comparison it was previously 4'000 euros for a purely electric drive and 3'000 euros for plug-in hybrids. In addition, anyone who buys a new electric car is exempted from vehicle tax for ten years from the date of initial registration. This tax exemption runs until the end of 2030 (see article in Motor Vehicle Tax Act, § 3d Absatz 1 Satz 2 KraftStG). Parallel to the extension of the environmental bonus, the installation of an acoustic warning signal specifically for low-noise electric vehicles will be introduced. The subsidy for this is a flat rate of 100 euros. To further promote e-mobility, charging an e-car at the employer's premises is tax-free. Although this saves on electricity costs that would otherwise be incurred, the "tank filling" is exceptionally not taxed as a non-cash benefit. This is different from other employer benefits, such as company cars or meal vouchers.
With around 3 billion euros dedicated to subsidies for purchasing an electric car, the Federal Government is sending a clear message to private consumers. The subsidy encourages private purchase of electric vehicle and promote low-emission passenger car in Germany.
