Bundestag passes Growth Opportunities Act
It is intended to relieve Germany's economy by billions of euros: on Friday, the Bundestag passed the Growth Opportunities Act with the votes of the governing coalition. The central element is an investment premium, which is intended to promote the climate-friendly restructuring of the economy. It also makes it easier to offset losses against tax. There is also a time-limited declining balance depreciation for new residential buildings.
According to the German government, the Growth Opportunities Act will cost around 32 billion euros between 2024 and 2028. The Cologne Institute for Economic Research (IW), which is close to employers, has calculated that the measures are likely to increase investment in Germany by a total of eleven billion euros by 2028. The tax relief will amount to an average of six to seven billion euros per year.
This investment premium, a key component of the Growth Opportunities Act, is designed to encourage climate-friendly restructuring within Germany's economy. The Act's passage by the Bundestag will provide numerous growth opportunities, as businesses can offset losses against tax due to this incentive.
Source: www.ntv.de
