Investment premiums, research funding, tax breaks: Finance Minister Lindner is planning measures for companies to boost the economy. Overall, the legislative package is expected to bring relief of six billion euros a year.
Because the German economy has been developing rather weakly for a long time, Federal Finance Minister Christian Lindner wants to introduce tax relief for companies. The entire legislative package should have a relief effect of around six billion euros a year, like that ARD Capital Studio learned from circles of the Federal Ministry of Finance.
“The economy needs stimuli – this has rarely been as urgent as it is now,” wrote Finance Minister Lindner on Twitter. The new “Act to Strengthen Growth Opportunities, Investments and Innovation as well as Tax Simplification and Tax Fairness”, or Growth Opportunities Act for short, is intended to make German companies more competitive.
investment premium and research funding
The core element of the legislative proposal is to be an investment premium. It is intended to provide an incentive for companies to invest in more energy and resource efficiency. “With the investment premium, investments in climate-friendly technologies also pay off financially much earlier,” said the ministry. “There is a concrete incentive for companies to switch to climate neutrality more quickly.”
The profit-independent premium of 15 percent of the investment, capped at 30 million euros, for assets in the areas of energy and resource efficiency is to be granted in the period from 2024 to 2027. The credit is to be made against income tax.
In addition, research is to be promoted from a tax perspective by tripling the previous assessment basis and expanding the eligible expenses, according to sources within the Ministry of Finance. Companies should also be able to offset losses against profits from other financial years more than before. In the case of low-value assets, more immediate write-offs should be possible.
Project now in the departmental coordination
In addition to these measures, the Ministry of Finance plans to simplify tax procedures and modernize tax law. Tax fairness is to be promoted, among other things by making electronic invoices mandatory.
It is still unclear whether the coalition partners – SPD and Greens – will go along with the plans. According to information from the “Frankfurter Allgemeine Zeitung”, Minister of Finance Lindner has now submitted the legislative proposal to the departmental vote.
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