Construction child benefit does not affect tax bonus for craftsmen

Although the construction subsidy is a public subsidy, it has no effect on the tax benefit for the use of craftsmen's services, which is only granted for services that are not otherwise publicly subsidized.

The tax bonus for the use of craftsmen's services is linked to the fact that these are not publicly funded measures for which interest-subsidized loans or tax-free grants are used. The Hamburg Fiscal Authority has now clarified that child construction subsidies do not affect the tax reduction, because the child construction subsidy exclusively promotes the initial purchase of residential property or the acquisition of new residential space. Craftsmen's services are not included in the subsidy.