Germany Extends EV Tax Credit Through 2035 - CleanTechnica

Germany has announced an extension of its vehicle tax exemption for battery electric vehicles (BEVs) to encourage EV adoption, continuing the policy for at least five more years beyond the current end date of January 1, 2026. This extension aims to cover BEVs first registered no later than December 31, 2030, with some reports suggesting the exemption could last until the end of 2035, though there is some discrepancy in sources. The tax exemption, part of the Motor Vehicle Tax Act amendment, is expected to reduce federal tax revenues progressively from €45 million in 2026 to €370 million by 2030. This policy move comes amid challenges facing Germany’s automotive industry, including declining sales, competition from China, the transition to electric mobility, and trade tensions with the US. The extension is seen as a critical incentive to boost EV sales following a sharp decline after the abrupt end of direct financial subsidies in December 2023. Chancellor Friedrich Merz and other federal ministers are