Bonus for switching to electric vehicles

Greenhouse gas emissions from road traffic are almost as high as they were in 1990. To promote electric mobility, the Federal Government and the car industry increased the buyer’s premium, the "Umweltbonus" (environmental bonus) – for e-cars: as of the beginning of November 2019 a grant of up to €6,000 has been available for newly registered electric or fuel cell cars. The funding also applies to young electric used cars.

In order to provide support during the coronavirus crisis, the state subsidy share of the environmental bonus was doubled in the economic stimulus package. As a result, buyers of pure e-vehicles are able to benefit from an innovation bonus of up to €9,000 up until the end of 2021. Applications can be submitted to the Federal Office for Economic Affairs and Export Control.

Tax breaks for e-vehicles

Better tax support for the purchase and use of electric service and delivery vehicles has been in place since the beginning of 2020. For example, up until the end of 2030, employees can charge their electric or hybrid vehicles tax-free in their employers’ underground car parks.

Up until 31 December 2020, newly registered pure e-vehicles and modified vehicles will be motor vehicle tax-free for 10 years. This regulation was already extended in 2016.

A million charging points for electric mobility

A million public charging points are to be made available throughout Germany by 2030. 50,000 of these are to be available by 2022. For this purpose, the Federal Government adopted its “Masterplan Ladesäuleninfrastruktur” (master plan for charging station infrastructure) in November 2019.

The Federal Government is providing an additional €50 million in funding for private charging facilities for the first time in 2020. Charging points at customer parking spaces will also be funded.

The car industry wants to install at least 15,000 additional public charging points by 2022 and 100,000 charging points on its business premises and at affiliated dealers by 2030. In future, charging battery-powered vehicles is to be possible at all petrol stations.
The Federal Government has also introduced new regulations for building and home owners: in future, bigger car parks belonging to buildings must be fitted with charging infrastructure and installation must be permitted. In future, renters will be able to request permission from their landlords to install an electric charging station, if the renters pay for the installation.

The Federal Government will massively boost research funds for new technological opportunities and integrated mobility strategies.

Passenger and heavy goods vehicles generate around 94 percent of the greenhouse gas emissions of the transport sector. Of this, around 59 percent is attributable to petrol and diesel cars and 35 percent to corresponding HGVs. Road traffic has increased significantly since 1990. New vehicles are considerably bigger, heavier and more powerful than before. 91 percent of new registrations are still for petrol and diesel engines. In 2019 only two percent of vehicles were registered with liquid or natural gas, electric or hybrid engines.