Investitionsfreibetrag 2026: the doubled allowance until year-end
20 % instead of 10 %, 22 % for green investments, a base of up to one million — and four conditions that are easy to overlook.
This is a rare case where a tax benefit has an expiry date. The investment allowance has been temporarily doubled — and the window closes at the end of 2026. After that, the rate reverts to its previous level.
How much exactly
For investments made from November 2025 through the end of 2026, the general rate is 20% instead of the usual 10%, and for green investments — 22% instead of 15%. The maximum base is one million euros per year per company, meaning up to 200,000 euros in additional deductible costs against profit.
The key detail: this benefit does not reduce the depreciation base. You depreciate the equipment as usual — and additionally deduct one fifth of its value as an expense. That is why it is meaningful even in a year with moderate profit.
Four conditions that are easy to overlook
Only new depreciable tangible assets with a useful life of at least four years. Only if recorded in the fixed asset register. Only upon actual commissioning within the eligible period. And — a four-year retention requirement: selling earlier means the benefit is clawed back.
The green category is defined by a separate regulation: electric vehicles and bicycles, charging infrastructure, renewable energy installations, and others. The difference between a standard and a green classification within a single purchase can amount to several thousand euros — so the classification should be agreed with the supplier in advance.
The most costly mistake in this area is buying the right equipment in January 2027. The calendar matters more here than the amount.
What to do this year
Review your 2027 procurement plan and consider what makes sense to bring forward to this year. Check whether the benefit conflicts with the investment income allowance — only one of them applies to the same purchase. And make sure the equipment is not merely paid for, but actually commissioned before the end of the year.
We handle filings for FOP and small companies — from a first EAR to Basispauschalierung. This rubric breaks down what the Finanzamt checks most often.