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Posted 21 Jul 2020

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The purchase of a new car is usually associated with high costs. How about if you could save up to 11,000 euros when buying a car? With the innovation bonus, the German government wants to promote the purchase of electric cars and plug-in hybrids. Especially this year and has therefore doubled its previous environmental bonus!

Double environmental bonus on e-cars and plug-in hybrid cars

Topics such as shared mobility and corporate benefits have been an important part of the state's economic stimulus package, which the federal government grants to companies and individuals under certain conditions. In the wake of the current corona crisis, the federal government wants to promote the purchase of a plug-in hybrid and an electric car even more than before. So anyone planning to buy an electric car will benefit from double the environmental bonus until the end of 2021. As a so-called innovation bonus, the automobile manufacturer pays one half and the federal government the other half of the financial grant. Depending on the car manufacturer, this can even save up to 11,000 euros (Hyundai). You can get a maximum funding of 10,000 euros when buying an electric car or a plug-in hybrid car from Renault. The innovation premium for a VW, Opel, BMW or KIA is a maximum of 9,000 euros. Manufacturers like Skoda, Toyota and Land Rover are at the bottom in terms of bonuses.

How to get the innovation bonus

In order to benefit from the advantages of the innovation bonus, the car must either be a purely battery-powered or an externally rechargeable hybrid electric vehicle. However, fuel cell vehicles, vehicles that have no local CO2 emissions or with a maximum of 50 g CO2 per kilometer, are also eligible. Other prerequisites are, for example, a maximum net list price of the basic model up to a maximum of 65,000 euros and a minimum holding period of six months. In addition to at least four wheels and a maximum of eight seats, the vehicle must also be approved by the applicant.

Further tax benefits and tax saving models in 2020

When purchasing a new electric car or a plug-in hybrid car, it does not matter whether you buy the vehicle or lease it. Therefore, both private individuals and companies benefit from the new, double environmental bonus. There are also a number of other tax benefits and tax-saving models that you can still use in 2020. For example, anyone who approves a battery-powered vehicle by December 31, 2020 is exempt from vehicle tax for ten years - even if the owner changes within this time. The company car regulations for plug-in hybrids and electric vehicles that have been in force since 2019 also ensure that they only have to be taxed at 0.5 percent of the list price. In addition, the charging of such a vehicle by the employer is not considered a monetary benefit and therefore does not have to be taxed.

Whether company-owned e-bikes, electric company cars or a free usable mobility budget - government support for the promotion of environmentally friendly drives has increased rapidly in recent years.

Are you planning to buy an electric car? Best in 2020

If you are planning to buy an electric car or a plug-in hybrid vehicle, you should ideally do so this year to claim the greatest possible bonus. The purchase is currently particularly advantageous for companies that want to offer their employees special employee offers and therefore rely on e-mobility. In addition to the price savings of up to 11,000 euros when buying or leasing one or more electric vehicles, companies also have the option of giving their employees these in the form of a so-called monetary benefit. This saves both: the employer and the employee.