Bundestag decides investment booster: Germany on growth course!
Bundestag decides investment booster: Germany on growth course!
Deutschland - On June 5, 2025, the Bundestag debated a comprehensive law that is known as a "tax investment foal program for strengthening Germany business location". The coalition factions of the CDU/CSU and SPD presented the draft law with the Bundestag printed matter 21/323, while an application by Bündnis 90/Die Grünen (21/356) was discussed in parallel. Both templates were handed over to the committees for further advice, with the Finance Committee taking over the lead.
Federal Minister of Finance Lars Klingbeil (SPD) emphasized the need to create new jobs through targeted investments and to bring Germany back to growth. He pointed out that the planned tax measures should contribute to strengthening competitiveness. One of the significant changes is the introduction of super depreciation of up to 30% per year for mobile assets that apply from July 1, 2025.
planned tax relief
The draft law also provides for a gradual reduction in corporate tax rate. From January 1, 2028, this is expected to drop from 15% to 10% by 2032. In addition, the tax rate for retained profits from partnerships is reduced from 28.25% to 25%. Special funding also provides electromobility, because the tax depreciation for electric vehicles is to be increased to 75% by 2027, while the assessment basis for the purchase is increased to EUR 100,000.
The planned tax relief volume is estimated at a total of 2.5 billion euros for 2025 and 8.1 billion euros for 2026, and up to 12 billion euros for 2028. These funding is aimed at strengthening and increasingly supporting research in Germany by increasing the assessment basis of the research allowance from 10 million euros to 12 million euros and additional expenses are included.
criticism and concerns
Despite the positive approaches, the draft law was also viewed critically. Christian Douglas from the AfD described the current economic situation as homemade. Dr. Mathias Middelberg from the CDU/CSU pointed out the existing economic standstill and demanded urgent measures. In addition, Andreas Audretsch expressed concerns about possible tax failures for municipalities and countries.
Another application by the Greens calls for the end of tax exemption for profits from the sale of rented properties after ten years of holding time, which could generate potential tax revenue of up to six billion euros. In addition to these aspects, the party penetrates the termination of trade tax for wealthy corporations and measures against organized tax evasion.
The discussions in the Bundestag show the large number of facets that bring the proposed tax changes. However, the goal remains clear: to promote competitiveness and innovative strength of the German market through tax relief and investment incentives and to bring new impetus into business.
For further details about the current developments, you can report the reports on
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