Germany will reintroduce an electric vehicle subsidy program in 2026, featuring stricter criteria designed to target lower and middle-income households and boost adoption of fully electric models.
The new “Umweltbonus” program, set to begin January 1, 2026, comes after a period of uncertainty and the suspension of previous purchase incentives. The initiative aims to re-accelerate the energy transition in the automotive sector.
Under the revised scheme, subsidies will cap at approximately $4,320 per new fully electric vehicle. To qualify, a vehicle’s net catalog price must not exceed roughly $48,600.
The program also introduces an income limit for applicants, with a frequently cited threshold around $4,100 in gross monthly income, prioritizing low and medium-income families. For the first time, used electric vehicles will also be eligible for subsidies.
Plug-in hybrid vehicles will be excluded from the new program, which will exclusively support 100% electric models.
Berlin intends to maintain the country’s position at the forefront of European electrification. The government aims to ensure electric vehicles become a more accessible option for a broader demographic.
The new program will be financed by Germany’s Climate & Transformation Fund and the European Union’s Social Climate Fund. Additionally, the road tax exemption for electric cars is being extended until 2035 for vehicles first registered by December 31, 2030.