Consumers will be able to apply for the German government’s electric vehicle subsidy retroactively to the beginning of the year – likely starting in May. The Bundestag passed the “Act to Promote Climate-Neutral Mobility,” providing the legal basis for this on Friday. Depending on the car model and income, the subsidy can range from €1,500 to €6,000.
Federal Environment Minister Carsten Schneider (SPD) presented the subsidy for private households with a taxable annual income of no more than €80,000 in January. According to the ministry, cars with purely electric drive can be subsidized with at least €3,000. For the purchase of plug-in hybrids and electric cars with so-called range extenders, where a small combustion engine can charge the battery, there will be a basic subsidy of €1,500.
To provide extra support for families, the Federal Ministry for the Environment announced that the subsidy amount per child will increase by €500 to a maximum of €1,000. Furthermore, households with annual incomes below €60,000 or €45,000 will each receive additional funding.
The members of parliament approved this measure as part of a draft law implementing an EU directive on consumer credit agreements. The draft law was passed with the votes of the CDU/CSU and SPD against the votes of the Greens, the Left Party, and the AfD.
A purchase incentive for electric cars already existed once: The so-called environmental bonus for private individuals and companies was introduced in 2016 and abruptly abolished by the traffic light coalition at the end of 2023. The reason at the time was the ruling by the Federal Constitutional Court that the budget was unconstitutional; the coalition therefore had to save billions. The end of the purchase incentive led to a slump in new registrations of electric cars in 2024.
AFP translated by Blackout News