Growth Opportunities Act passed by the Federal Council

Following the Bundestag, the Bundesrat has also approved the Growth Opportunities Act, meaning that it can now be promulgated and enter into force.

At its meeting on March 22, 2024, the Federal Council approved the Growth Opportunities Act, thereby confirming a compromise proposal by the Mediation Committee. Numerous amendments were made to the law at the suggestion of the Mediation Committee, including

• Introduction of declining balance depreciation for residential buildings of 5 %,

• Introduction of declining balance depreciation on movable assets for 9 months,

• a four-year increase in the loss carryforward to 70 percent (excluding trade tax) and

• Expansion of tax incentives for research.

The originally planned climate protection investment premium is no longer part of the Growth Opportunities Act. In its slimmed-down form, the law is expected to lead to tax relief amounting to 3.2 billion euros. You will find all the details on the final version of the law in one of the next issues.