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E-mobility: Habeck wants charging credit and tax benefits

(dpa) The automotive industry is under pressure, as electric vehicle sales are lagging. The economy minister aims to support electric vehicles specifically with charging credit, tax advantages, and battery certificates. Social leasing is conceivable.

Wants to boost the sales of electric cars: With charging electricity reports, tax advantages, and battery certificates for used cars, Minister of Economy and Climate Protection Robert Habeck wants to boost the sluggish sales of electric cars. | Photo: dpa/Sina Schuldt
Wants to boost the sales of electric cars: With charging electricity reports, tax advantages, and battery certificates for used cars, Minister of Economy and Climate Protection Robert Habeck wants to boost the sluggish sales of electric cars. | Photo: dpa/Sina Schuldt
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Federal Minister of Economics Robert Habeck (Green Party) wants to boost the purchase of electric cars with charging credit and tax incentives, thereby supporting the German automotive industry. It is proposed that electric car owners receive financial support when charging their vehicles—at least for a certain period of time. 

"We want to provide a government-funded charging credit of 1,000 euros (for charging at publicly accessible charging stations) as an incentive to buy electric cars (new and used)," states a concept from the Federal Ministry for Economic Affairs and Climate Action, cited by newspapers of the Funke Media Group. 

Moreover, purchase incentives are advocated. For electric car buyers with low and middle incomes, a tax subsidy should be introduced. A certain portion of the acquisition costs should be tax-deductible, similar to the promotion of energy-efficient building renovation. For people with low incomes, the ministry also considers alternatives like a social leasing model for electric cars.

Second-hand market also in focus

Besides the new purchase of electric cars, the paper also focuses on the used car market: "To stimulate the used car market, we want to subsidize professional battery checks with 100 euros," it states. Used, pure electric vehicles that are exclusively equipped with an electric motor (BEV) especially facilitate entry into e-mobility for price-sensitive customers, it says.

The potential buyer receives certainty about the condition of the used vehicle battery and thus about the residual value of the vehicle through a professional battery check. In Germany, electric vehicles have been struggling with sales difficulties for some time. At the end of 2023, the environmental bonus for electric cars was prematurely discontinued due to the budget crisis.

Flexibly design penalties for the automotive industry

In the paper, the BMWK also proposes, in light of the current sales problems, to make possible penalties for the automotive industry from violations of fleet limits more flexible and to create the possibility to avoid penalties from the year 2025 by exceeding the targets for 2026 and 2027. However, the scope for decisions by the current red-green coalition is limited. After the breakup of the traffic light coalition, the SPD and the Greens no longer have a majority in the Bundestag.

Translated automatically from German.
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