Investment program 2025
In the summer of 2025, the Bundestag passed a series of tax changes with the law for an immediate tax investment program. The aim is to stimulate investment, promote innovation and strengthen Germany’s competitiveness as a business location.
The following changes can reduce your tax:
Depreciation becomes more attractive
Between July 2025 and the end of 2027, companies will once again be able to depreciate movable assets using the declining balance method. This means that the acquisition costs can initially be claimed for tax purposes more quickly – at up to 30% per year.
The newly introduced arithmetic-degressive depreciation for electric vehicles is particularly interesting:
➤ 75% in the first year,
➤ then falling rates over a total of five years.
This not only provides companies with liquidity advantages, but also makes investments in climate-friendly mobility more attractive.
Electric company cars: higher subsidies
There are also improvements in the private use of electric company cars: The upper limit for tax relief has risen from €70,000 to €100,000. This means that higher-value models will also benefit from tax relief in future.
Corporations: tax rate to fall from 2028
A long-term component of the program is the reduction of income taxes. The corporation tax rate is currently 15% and will be gradually reduced to 10% by 2032. The solidarity surcharge and trade tax, the amount of which depends on the assessment rate of the municipality, will also be reduced.
Example calculation (assessment rate 400 %):
➤ 2025: corporation tax 15 %, solidarity surcharge 0.825 %, trade tax approx. 14 % → Total burden: approx. 29.8 %
➤ From 2032: corporation tax 10 %, solidarity surcharge 0.55 %, trade tax approx. 14 % → Total burden: approx. 24.6 %
This will reduce the burden by around 5 percentage points – an important step towards becoming more competitive internationally.
More funding for innovation
From 2026, the research allowance will also be improved:
➤ In future, companies will be able to claim higher expenses,
➤ include additional types of costs,
➤ and benefit from a higher hourly rate for own work.
Innovative SMEs in particular will be able to secure better tax protection for their research projects.
Our conclusion
It pays to act! Anyone planning to invest in machinery, vehicles or research should include the new tax framework in their financing and tax planning now. The temporary special depreciation allowances until 2027 and the improved subsidies from 2026 offer companies attractive opportunities to conserve liquidity and drive forward future projects at the same time.