Berlin, April 17, 2026 The Bundestag has passed legislation introducing a tiered subsidy program for electric vehicles, with incentives ranging from €1,500 to €6,000 depending on household income and family size, set to take effect in January 2026.
Subsidy Structure and Income Thresholds
The new E-Auto-Prämie (electric vehicle premium) establishes a base subsidy of €3,000 for fully electric cars, with additional adjustments based on income and the number of children in a household. Households earning up to €60,000 annually qualify for €4,000, while those with incomes below €45,000 receive €5,000. The income cap rises to €80,000 for single applicants and €90,000 for families with two children.
For plug-in hybrids and vehicles with range extenders, the base subsidy drops to €1,500. Each child in a household increases the subsidy by €500, capped at a maximum additional €1,000. The program aims to incentivize lower- and middle-income families to transition to electric mobility while phasing out support for higher-income buyers.
Political Debate and Implementation
The legislation sparked heated debate in the Bundestag, with Till Steffen of the Greens defending the income-based approach. "Je nach Fahrzeugart und persönlichen Umständen liegt sie zwischen 1.500 und 6.000 Euro," Steffen noted during the parliamentary session, emphasizing the need to target subsidies where they are most effective. Critics argued the income caps could exclude middle-class buyers, while proponents highlighted the program’s focus on affordability.