ifo Schnelldienst 08/2025: Immediate Tax Program for Investments

Immediate tax program for investments: Does this step strengthen Germany as a business location? 

The black-red coalition government has ambitious plans for German tax policy: it wants to make it a “guarantor of a competitive and growing economy.” The first step is the “investment booster.” Other points include subsidies for electric cars used for business purposes, tax breaks for retained earnings, and an expansion of the subsidy allowance to facilitate innovation activities by medium-sized companies. Our cover story discusses the potential effects of these measures and other sensible proposals.