Ever since Franziska Giffey invented her “Gute-Kita-Gesetz” as Federal Minister for Family Affairs, the search for a catchy name for a new law in Berlin’s political establishment has almost become de rigueur. Finance Minister Christian Lindner (FDP) obviously took the social democrat as an example. For his tax package, which he had repeatedly announced for months but had not yet formulated, there is now a concept and a name: “Growth Opportunities Act.”
From circles in the Ministry of Finance, it was said that the package that Lindner submitted to the internal government vote just before the summer break included a total of 50 tax policy measures. In essence, however, the project is based on three pillars: an expansion of research funding, a more favorable offsetting of losses against profits for companies and, above all, a bonus for companies that want to invest in climate-friendly technologies.
Strictly speaking, Lindner is already in arrears with its investment subsidy. In the coalition agreement, this had already been promised for the years 2022 and 2023. But then Lindner postponed the funding originally intended as a “super write-off” because of the broken supply chains and lack of capital goods as a result of the corona pandemic. Now it is to come, albeit in the form of an investment bonus.
From circles in the Ministry of Finance, it was also said that the package should strengthen Germany’s competitiveness and open up “leeway” for investments and innovations. “The aim is to supplement funding instruments despite the strained cash situation.” The reference to the tense cash situation – the government has only just been able to agree on a government draft for the 2024 budget with great effort and much argument – is particularly interesting in view of the fact that Lindner’s tax package is said to cost six billion euros. According to reports, tax revenue shortfalls of this magnitude are expected in his house every year, in the period from 2024 to 2027. However, the Greens and Social Democrats had repeatedly campaigned at least for the promotion of climate protection investments.
According to the concept that is now available, “commercial goods from the areas of energy and resource efficiency” should be eligible for funding. The idea is that thanks to the bonus, investments in climate-friendly technologies should pay off financially earlier for companies: “There is a concrete incentive for companies to switch to climate neutrality more quickly.”
In doing so, the maximum of what European state aid law allows should be exhausted. A “non-profit bonus of 15 percent of the investment” is to be granted, but no more than 30 million euros. Businesses that are making losses can also receive the premium. Investments in “movable assets” to increase a company’s energy and resource efficiency are to be promoted. The investments should also be part of an energy saving concept or an in-house energy management system.
In addition to the investment premium, Lindner is also planning significant improvements for the economy in the existing research funding, such as tripling the assessment basis. Companies should also be able to offset current losses on a larger scale against past and future profits.