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Germany plans new EV incentives for business EV fleets: special 75% depreciation for first year

The special depreciation for EVs should help companies renew their fleets.

Jaan Juurikas
Jaan Juurikas

Jun 5, 2025

Germany plans new EV incentives for business EV fleets: special 75% depreciation for first year

EVWire brief: Germany Federal Ministry of Finance has unveiled draft bill, “Responsibility for Germany” program with a wide range of reforms starting from July 2025, and EV industry is a small part of it: The government will introduce an “investment booster” through accelerated depreciation (degressive AfA) for equipment investments, including EVs, to stimulate fleet renewal and corporate EV adoption.

Reportedly, starting on 30th of June for EVs registered as company cars, the write-off in the year of purchase could amount to 75% of the purchase price. In the following year, 10% could be decucted, 5% in the second and third year, 3% in fourth and 2% in the fifth, last year.

Less directly, the measures that lower the energy and electricity costs have an effect on EV use as well.

This is the first EV subsidy after the government suddenly cut the environmental bonus for EV purchases mid-December 2023, which sent the EV industry into a freefall and is just recovering from this year: the May 2025 numbers are just out and we reported — EVs are up 45% compared to May 2024 and EVs make up 18% of all cars sold.

The government has also committed to simplifying regulatory frameworks, particularly for permitting and environmental approval processes. This will help accelerate the rollout of high-power charging stations, including megawatt charging systems for heavy-duty vehicles

Source: European Alternative Fuels Observatory


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