In the case of taxation of private use of electric vehicles or hybrid electric vehicles with externally rechargeable batteries, the list price shall be reduced by the cost of the battery system contained therein. If the costs for the battery system are not included in the gross list price, this is used without deduction for taxation. For vehicles registered for the first time before 31 December 2013, the list price is reduced by 500 euros per kWh of battery capacity. This amount shall be reduced by 50 euro per kWh of battery capacity per year for vehicles purchased in subsequent years. The reduction in the list price is a maximum of 10,000 euros per vehicle. This maximum amount is reduced by EUR 500 per year for vehicles purchased in subsequent years.
As of January 1, 2019, the tax base for the taxation of private use of electric vehicles, plug-in hybrid vehicles and fuel cell vehicles as company cars purchased or to be purchased after December 31, 2018 will be halved. This will halve the tax on the private use of the company car and on journeys between home and work. Plug-in hybrid vehicles, however, may only emit a maximum of 50g CO2 per kilometre or must have a purely electric range of at least 40 kilometres. The regulation was initially shall be limited to vehicles purchased up to and including 31 December 2021. It applies to both new and used vehicles. The reduction of the gross list price by the cost of the battery system shall not apply in cases where the tax base is halved.
On 7 November 2019, the German Bundestag passed a law providing for an extension of this regulation. Beneficiaries are all electric vehicles purchased up to and including 31 December 2030. In order to benefit from halving the assessment basis even after 31 December 2021, plug-in hybrid vehicles may have a maximum CO2 emission of 50g per kilometre or must have a purely electric minimum range of 60 kilometres from 1 January 2022 to 31 December 2024 and 80 kilometres from 1 January 2025. In addition, purely electric vehicles with a maximum gross list price of EUR 40,000 that are purchased after 31 December 2018 and before 1 January 2031 will benefit from a further halving of the tax base for private use to 25 percent of the gross list price. The law will come into force on 01 January 2020.