Germany's lower house of parliament approves tax relief for companies

Germany's lower house of parliament on Friday passed a multibillion-dollar tax relief package for small and medium-sized companies, aimed at unleashing new investment amid weak foreign demand and high interest rates. The package, called the Growth Opportunities Act and approved in the lower house with the votes of the three coalition parties, provides for tax relief of around 7 billion euros ($7.6 billion) a year from 2024, and a total of over 32 billion euros until 2028. ($1 = 0.9206 euros)

Germany's lower house of parliament on Friday passed a multibillion-dollar tax relief package for small and medium-sized companies, aimed at unleashing new investment amid weak foreign demand and high interest rates.

The package, called the Growth Opportunities Act and approved in the lower house with the votes of the three coalition parties, provides for tax relief of around 7 billion euros ($7.6 billion) a year from 2024, and a total of over 32 billion euros until 2028. The expected tax revenue shortfall is to be borne largely by the federal states and municipalities.

Therefore, the law is expected to face opposition in the Bundesrat, the legislative body that represents the 16 German states at the federal level, and to ultimately end up in a mediation committee to find consensus. The law provides for companies to receive a state subsidy for 15% of their total investments in climate protection measures and it gives more scope to offset losses against profits and offset depreciation costs for a limited period of time for movable assets and residential buildings. ($1 = 0.9206 euros)

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