Investment Package Approved by the Bundestag Accepted by IHK Südlicher Oberrhein (South Lower Rhine Chamber of Industry and Commerce)
**"Let's talk about the buzz surrounding the freshly approved investment package by our German parliament, the Bundestag! After years of economic standstill, the IHK Südlicher Oberrhein jumps in with a sigh of relief saying 'Something's finally happening,' signaling a much-needed wake-up call to the economy.
The IHK praises the government's wise choices in focusing on investments in the digital world, infrastructure, and innovation. What's more intriguing is the expansion of depreciation benefits for machinery and electric vehicles, along with the planned reduction of the corporate tax rate starting in 2028.
Dr. Dieter Salomon, the IHK's main boss, voices his concern over the selective reduction of the electricity tax, as businesses beyond just industry face noticeable energy expenses. Hence, the IHK urges for swift implementation and stresses the urgent need for structural reforms, bureaucracy trimming, and increased predictability in plans.
Diving a bit deeper, the package provides companies with accelerated write-offs of up to 30% for machinery and equipment investments, and up to 75% for electric vehicles, encouraging short-term tax reduction and capital spending. The government is aiming for a gradual corporate tax reduction, taking it down from the current 15% to 10% over a five-year time frame, starting in 2028.
Now, you might wonder about those electricity bills that are causing town cries from all corners. While there's been some noise about addressing these high costs, concrete measures or cuts in the electricity tax itself aren't explicitly discussed in the sources we've got our eyes on.
Lastly, it's good to know that this investment package amounts to a whopping €46 billion in tax relief through 2029, with the government—along with state and municipal governments—covering significant portions of the tax revenue losses to secure broad support. The package was mothered by the Bundestag on June 26, 2025, and is expected to receive Bundesrat approval in mid-July."**
- The expansion of depreciation benefits for machinery and electric vehicles, as well as the planned reduction of the corporate tax rate starting in 2028, are elements of the investment package that have grabbed the attention of the finance sector within the business community.
- The IHK, expressed concerns over the selective reduction of the electricity tax, highlighting that businesses beyond just industry face significant energy expenses, urging for swift implementation and structural reforms, including increased predictability in plans and bureaucracy trimming.
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