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An electric car as a company car? We have the info!

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An electric car as a company car? We have the info!

The switch to electric drives, which is progressing in the automotive industry, has now also reached numerous companies. More and more companies and companies prefer electric vehicles. And for companies, switching to electric vehicles is actually lucrative in many respects. On the one hand, the reputation of the company is often improved, on the other hand, thanks to tax savings and subsidies, there are also financial advantages.

Are e-cars environmentally friendly?

CO₂ emissions can be reduced by switching from classic combustion engines to electric drives. Bringing CO₂ emissions to a sustainable level worldwide requires long-term cooperation between private consumers, industry and companies. As a company, you can make your contribution by switching to electric drives. The emissions generated by electric vehicles are low compared to conventional combustion engines. If green electricity is also used, the climate friendliness is even higher.

An electric car as a company car? We have the info!

Nevertheless, even when using electric vehicles, CO₂ emissions cannot be completely prevented. In particular, the manufacture of batteries is anything but environmentally friendly. Nevertheless, electric vehicles, despite problematic battery production, produce fewer emissions than combustion engines on average. Companies also have the opportunity to benefit financially from switching to electric cars. The CO₂ tax, for example, is completely eliminated when using e-cars.

Can companies improve their reputation?

In many companies, sustainability has now become part of the company philosophy and the concept of "conserving resources" can of course also be marketed. Since then, many companies have relied on a climate-friendly concept, for example by relying exclusively on electric vehicles. Of course, the companies also want to show this to their customers, for example by adding lettering to their company cars. sticker, with "We rely on electric drive", is a common sight on the road and companies use it to improve their public image. But the climate-friendly orientation of a company can also be advertised directly on the company website. In terms of image and marketing, a conversion to electric vehicles can therefore pay off.

An electric car as a company car? We have the info!

Are electric vehicles lucrative for companies?

Switching to electric vehicles can make financial sense for companies. Through certain tax advantages and subsidy programs, even employees can benefit from it themselves. Some of these benefits are:

  1. there are funding programs directly from the federal government
  2. there are regional funding programs
  3. lower pecuniary benefit
  4. the vehicle tax does not apply for a period of 10 years
  5. then only 50% of the conventional motor vehicle tax

Can tax savings be expected from the private use of an e-car company car?

Although company cars are intended for business use, in practice the vehicles are also used privately. And that also benefits the environment. If a company car is also used privately, a second car is usually not bought. However, one should not forget the pecuniary advantage that company owners and employees have to offset and tax. With normal combustion engines, one percent of the list price of the vehicle must be claimed from the time of initial registration.

For electric vehicles, on the other hand, only 0,25% is taken into account, which is a significant saving. However, this only applies to a list price of up to €60.000. If the purchase price of the e-car is higher than €60.000, 0.5 percent will be deducted, which is still only half. Employees in particular benefit from the tax advantages, since the monetary advantage must be claimed as wages. However, company owners and the self-employed also benefit from the discounts, as the monetary benefit is lower.

How is the motor vehicle tax made up here?

Usually the Road tax calculated based on displacement and actual CO₂ emissions. This means that the lower the CO₂ emissions, the less taxes have to be paid. However, this is different for electric vehicles, as there are no vehicle taxes in the first 10 years after initial registration. After the first 10 years, the vehicle tax due is calculated based on the weight of the vehicle. However, as has already been stated, at 50% it is just half of the vehicle tax that is incurred for a vehicle with a combustion engine.

Is the federal government subsidizing the use of e-cars in companies?

The federal government is also promoting the purchase of an electric vehicle. The prerequisite for this, however, is that it is also a vehicle listed by the federal government, which is eligible. If this is the case, the environmental bonus applies. The environmental bonus from the federal government can amount to up to €9.000 per vehicle. In contrast to purely electric vehicles, the purchase of a plug-in hybrid is also funded. However, the maximum amount of funding here is “only” €6.750. Practical for entrepreneurs: The environmental bonus can be easily applied for online. If a vehicle has already been registered, you can contact the Federal Office of Economics and Export Control to apply for the environmental bonus. The application will then be processed there.

The federal government currently states that the said environmental bonus only until the end of this year is valid. Although there will still be a bonus in the new year, this will be adjusted and only apply to vehicles that are proven to be environmentally friendly. It can be assumed that the environmental bonus will then increasingly only be aimed at electric vehicles. Another change will also apply to consumers from September 1st next year. From this date, the environmental bonus will only apply to private individuals who buy a new electric vehicle. As an entrepreneur, you should therefore submit your applications for the environmental bonus before this date. It remains to be seen whether this planned rule change will actually be implemented and whether something will change.

An electric car as a company car? We have the info!

The website of the Federal Office of Economics and Export Control is a good place to go to get regular information about current developments and potential changes. In addition, KfW is currently offering funding aimed at charging stations, insofar as these are used to charge electric vehicles within a company. Up to €900 in subsidy money awaits entrepreneurs for each charging point set up. It should be noted, however, that the bonus payments are drawn from a subsidy amount. This is limited and the banks expect that the funding will be used up by the end of the year. So if you still want to benefit from the support from KfW, you should act quickly. At this point it should be said that the KfW funding program is only available for entrepreneurs.

What support programs are offered at regional level?

There are also various funding programs at regional level, which are then offered by the individual federal states and cities.

  1. The federal state of North Rhine-Westphalia offers a subsidy of up to €8.000 for the purchase of an electric vehicle. It is important to note that this subsidy also applies to leasing and rental cars. However, certain conditions must be met here.
  2. There is a subsidy of up to €3.000 in Baden-Württemberg. Taxi and rental car companies, among others, can benefit from the funding here.
  3. There is a subsidy for all light electric vehicles for companies and companies in Munich. Free advice on all aspects of e-mobility can also be requested here.
  4. Owners of electric vehicles can look forward to free parking in many cities in Germany, including in the city centre. E-vehicle owners do not have to apply for anything, as it is sufficient to have a valid e-license plate.

An electric car as a company car? We have the info!

Since the various funding programs at federal and city level often change or expire, as an entrepreneur you should always inform yourself individually and promptly. This means that if you, as an entrepreneur, are about to purchase an e-company car and do not want to forego any subsidy programs, you must contact your responsible city or state. Consultations, which are often offered by the city offices, also save you the time-consuming research of your own.

Can companies take advantage of several funding programs at the same time?

The various funding programs can sometimes also be combined with one another. However, entrepreneurs should make sure that they do not lose track of the various requirements that apply to the individual support programs. With the environmental bonus, for example, you can still get it even if you have already bought an electric vehicle. For other funding programs, on the other hand, the application must be submitted before the purchase. So if you want to secure the greatest possible financial advantage, you should inform yourself accordingly.

Electric vehicles and environmental zones - these advantages exist!

Currently, it is becoming more and more common for environmental zones to be set up in various cities in Germany. This means that vehicles with a diesel engine are no longer allowed to drive within these zones. Since these zones are constantly being expanded, this is another reason why the purchase of electronically operated company cars can be worthwhile. Zones of this type can of course simply be bypassed by choosing a different route. However, this is by no means possible everywhere. Environmental zones are more common in larger cities than in small towns and remote areas. There is often no other way to reach the destination. These and other problems are eliminated with the use of electric vehicles.

An electric car as a company car? We have the info!

Is it worth investing in e-cars now?

A new law will take effect as early as 2035, meaning that vehicles with combustion engines will no longer be permitted. So far, however, the law only applies within the EU and does not affect vehicles that were registered before that date. However, the EU decision means that companies and businesses must rely on electric vehicles or other climate-friendly vehicles from this point onwards when purchasing new company cars. It is therefore not wrong if companies and companies are already dealing with the changeover. Thanks to various federal and state funding programs, it should currently be easier for companies to gradually expand the necessary infrastructure for the use of electric vehicles. It can therefore be worthwhile to start making the switch now.

An electric car as a company car? We have the info!

Which electric vehicles are suitable for my company?

Which type of electric vehicles are best suited for your business must always be considered individually. Various factors play a role here, such as the distance that the vehicles have to cover as part of the company's activities. A lot has happened in recent years in terms of the range of electric vehicles, but this is still far away from what we are used to from combustion engines. In itself, a not too large range of electric vehicles would not be a problem if the necessary infrastructure for charging stations were available. However, this has not yet been the case across the board and the charging process itself also takes a relatively long time. However, those who regularly have to travel long distances can (still) rely on plug-in hybrids.

An electric car as a company car? We have the info!

These are vehicles that have both an electric drive and a combustion engine. As soon as the energy is used up, the vehicle automatically switches to the combustion engine. In fact, hybrid vehicles are also subsidized by the federal government. However, if your company is not dependent on vehicles that constantly have to travel long distances, the market now offers a large selection of different electric vehicles. And apart from classic cars, there are now also trucks and e-limousines available from various manufacturers. But which type of electric or hybrid vehicle is the right one for you and your company depends on the individual circumstances.

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About Thomas Wachsmuth

Thomas Wachsmuth - He has been an integral part of tuningblog.eu since 2013. His passion for cars is so intense that he invests every available penny in them. While he dreams of a BMW E31 850CSI and a Hennessey 6x6 Ford F-150, he currently drives a rather inconspicuous BMW 540i (G31/LCI). His collection of books, magazines and brochures on the subject of car tuning has now reached such proportions that he himself has become a walking reference work for the tuning scene.  More about Thomas

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