Mobility
German Government Reintroduces EV Rebates with New Federal Incentive Program
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The German federal government has approved a new incentive program for electric mobility, effective retroactively as of January 1, 2026. This means all new registrations of electric vehicles and specific plug-in hybrids since the start of the year are eligible for funding—even if applications are filed at a later date.
During the presentation of the program’s key pillars in Berlin, Federal Minister for the Environment Carsten Schneider (SPD) explained that the retroactive clause was a deliberate choice to prevent buyers from hesitating and to stabilize the market early on. The program covers both the purchase and leasing of vehicles first registered in Germany on or after January 1, 2026. Eligibility is determined by the registration date, not the order date.
The German federal government has approved a new incentive program for electric mobility, effective retroactively as of January 1, 2026. This means all new registrations of electric vehicles and specific plug-in hybrids since the start of the year are eligible for funding—even if applications are filed at a later date.
During the presentation of the program’s key pillars in Berlin, Federal Minister for the Environment Carsten Schneider (SPD) explained that the retroactive clause was a deliberate choice to prevent buyers from hesitating and to stabilize the market early on. The program covers both the purchase and leasing of vehicles first registered in Germany on or after January 1, 2026. Eligibility is determined by the registration date, not the order date.
Eligibility and Incentive Amounts
The rebate applies to battery-electric vehicles (BEVs) as well as certain plug-in hybrids (PHEVs) and range-extender vehicles, provided they meet specific emission or range criteria.
Base Incentive: €3,000 for fully electric vehicles.
Maximum Incentive: Up to €6,000, thanks to a tiered social bonus based on household income and the number of children.
PHEVs & Range Extenders: A base rebate of €1,500 is available, provided the vehicles emit no more than 60 grams of $CO_2$ per kilometer or offer an all-electric range of at least 80 kilometers (approx. 50 miles).
To qualify, taxable annual household income must generally not exceed €80,000, with the limit rising moderately to €90,000 for families with children. Applications will be processed through an online portal scheduled to launch in May 2026. Notably, claims can be submitted up to 12 months after the initial vehicle registration.
Hildegard Müller, President of the German Association of the Automotive Industry (VDA), commented: "The funding program provides the necessary planning certainty for consumers and the German automotive industry. However, the focus must remain on improving the framework conditions, particularly in the area of charging infrastructure, including the associated power grids, and reducing charging prices. Key aspects of the program are fundamentally suitable for supporting the success of e-mobility in Germany. These include, in particular, the retroactive start of the program, the inclusion of plug-in hybrids, and the avoidance of price thresholds that distort competition.”