Germany Takes Positive Step Towards Promoting Electric Vehicles as Company Cars
This move strikes us as a bit of an unusual way of promoting electric vehicle purchases, but at least it’s something, especially for Germany—a nation that doesn’t seem to show strong support for plug-in vehicles.
German legislators voted in some rather odd tax incentives for drivers of electric corporate vehicles.
What this means is that private individuals who drive company cars, electric ones, will no longer be penalized for doing so.
It’s all a bit tricky, so we’ll turn it over to Reuters, who explains it like this:
“The private use of a company car is treated as taxable income in Germany and measured at a flat monthly rate of 1 percent of the vehicle’s gross list price. So electric cars have been at a disadvantage since their price tag can be as much as double that of a car using a conventional combustion engine.”
“According to the new law, backdated to Jan. 1, private users can offset the list price with 500 euros per unit of battery size, expressed in kilowatt hours. The maximum offset is 10,000 euros, which would equate to a powerful 20 kWh battery.”
The head of Germany’s import brands, VDIK President Volker Lange. sees this slight change in the law as a positive step:
“Finally a long overdue step is taken to make the use of electric cars more attractive for commercial customers.”
Automakers, including BMW, see corporate customers as a target group for future electric vehicles, especially since this group represents nearly one third of all demand in Germany’s automotive market.
Germany doesn’t offer subsidies on the purchase of electric vehicles, but perhaps this slight alteration in the corporate vehicle law will drive up demand for EVs.