Applying for electric vehicle incentives for your fleet

The authorized applicant for the incentive is always the party to whom the vehicle is registered. This can be a private individual or also companies, clubs or foundations. Whether this is a buyer or lessee is not important. A leasing provider may only apply for the incentive when they purchase an electric vehicle for their own use.

PS Team can take care of the application and the corresponding processes once you give us power of attorney. Please note that only the registered owner is entitled to receive the subsidy in all cases.

Prerequisites for new vehicles

• In order to receive the subsidy, the purchased vehicle model must be found on the list of eligible vehicles at the BAFA (Federal Office for Economic Affairs and Export Control).
• The electric vehicle must have been registered to the applicant in Germany for at least six months. In the event that the vehicle is leased, the retention period is increased to at least 12 months for contracts with a leasing period of up to 23 months, and to at least 24 months for contracts with a leasing period of over 23 months.
• The vehicle may only have been registered for a maximum of one year at the time of application.
• For electric vehicles registered for the first time between 03.06.2020 and 31.12.2021, the federal funding for the incentive can be doubled.

Prerequisites for used vehicles

• In order to receive the subsidy, the purchased vehicle model must be found on the list of eligible vehicles at the BAFA.
• The first registration of the electric vehicle must not be earlier than 04.11.2019. The EU country where the first registration was made is not relevant.
• The used vehicle must have been registered for a maximum of 12 months and not have driven more than 15,000 kilometers in order to be eligible for the subsidy.
• For used vehicles, the maximum subsidized value is 80 % of the gross list price of the new vehicle, less the gross manufacturer’s share. In the event that the purchase price of the used electric vehicle exceeds the maximum total subsidized price of the vehicle, then no subsidy is possible.
• The electric vehicle must have been registered to the applicant in Germany for at least six months. In the event that the vehicle is leased, the retention period is increased to at least 12 months for contracts with a leasing period of up to 23 months, and to at least 24 months for contracts with a leasing period of over 23 months.
• The vehicle may only have been registered to the new owner for a maximum of one year at the time of application.
• For electric vehicles registered for the second time between 03.06.2020 and 31.12.2021, and registered for the first time after 04.11.2020, the federal funding for the incentive can be doubled.
• A prior subsidy must not have been granted for the corresponding electric vehicle.

The buyer premium was planned to run until 31.12.2021, but has been extended by the government until 31.12.2025.

The original bonus has also been doubled as an “innovation bonus” for vehicles registered after 03.06.2020.

As a result, there are the following incentives:

Leasing vehicles can also take advantage of the government subsidy. The granted amount depends on the leasing period. Vehicles with a leasing period of two years and more are eligible for the full subsidy. If the leasing period is shorter, the subsidy is only granted proportionally.

Another factor is the minimum retention period:

• For leasing periods of up to 12 months, the minimum retention period is 6 months.
• For leasing periods of between 12 and 23 months, the minimum retention period is 12 months.
• For leasing periods of over 23 months, the minimum retention period is 24 months.

A subsidy application can only be made once the vehicle is registered, both for bought and leased vehicles. Once registration is completed, the application must be made within the following 12 months.

If the application is sent to the BAFA before the electric vehicle is registered, then it will be rejected. Once an application has been rejected, it is then no longer possible to apply for the subsidy again for the same vehicle. The only option for receiving the subsidy is then to appeal against the initial rejection.

The innovation bonus can also be combined with the following subsidy programs:

• Saubere Luft program – BMU
• Sozial und Mobil fleet replacement program – BMU
• Elektromobilität incentive scheme – BMVI
• Markthochlauf NIP2 incentive scheme – BMVI
• Klimaschutzoffensive für den Mittelstand scheme (KfW)
• WELMO scheme for economic e-mobility (state of Berlin)
• Klimaschutzförderrichtlinie Unternehmen scheme (state of Mecklenburg-Western Pomerania)
• BW-e-Gutschein voucher scheme (state of Mecklenburg-Western Pomerania)
• Inklusionstaxi Berlin subsidy program (state of Berlin)

Tax breaks on purchase

In addition to the buyer premium, owners of electric vehicles can also benefit from several tax incentives. For several years, a legal provision has been in place stating that electric vehicles are exempt from vehicle tax for a period of 10 years. This provision was extended to 31.12.2030 as part of the stimulus package connected to the COVID-19 pandemic.

If the electric vehicle is sold, the new owner is also eligible for the tax exemption for the remaining period.

Please note that only fully electric vehicles are eligible for the tax exemption, and not hybrid vehicles (including PHEVs).

Tax breaks when using company vehicles

Company vehicles that can also be used privately have always been taxed as a countervailing benefit with 1 % of the gross list price per month.

Since the start of 2020, this taxation has been reduced to 0.25 % for fully electric vehicles up to a gross list price of €60,000, provided the vehicles are used for more than 50 % of the time on company business.

Fully electric vehicles with a gross list price above €60,000 can be taxed at 0.5 %.

For all plug-in hybrid vehicles (PHEV), a reduced flat tax rate of 0.5 % applies provided the vehicles can drive at least 50 km running fully on electric power or have emissions of less than 50 g CO₂/km.

Incidentally, charging the vehicles at the employer is also not subject to taxation.

Fully electric vehicles and plug-in hybrids with a minimum range of 40 km are entitled to apply for an E-license plate. In many cities, public parking is free of charge with this license plate. Anyone parking in such areas on a regular basis can quickly save a lot of money. Furthermore, an increasing number of parking spaces are equipped with charging stations that may only be used by vehicles with an E-license plate.