Unlocking Growth: How the 30% Super Depreciation Boosts Green and Digital Investments

The 30% super depreciation offers companies a time-limited opportunity to reduce their tax burden while investing in green and digital technologies.

What you need to know:

• What is it? In addition to standard depreciation, companies can deduct an extra 30% of investment costs—specifically for sustainable and digital technologies.
• Timeframe: Applies from 2025 to 2027 for movable assets.
• Benefits: Tax relief, increased liquidity, and incentives for ESG goals and modernization.
• Examples: Investments in IoT, AI software, energy-efficient machinery, or electric vehicles.

Companies that act now benefit not only financially, but also secure competitive advantages and strengthen their position in the sustainable market.

How the 30% Super Depreciation Works

Who Can Benefit and When?

The 30% super depreciation is available to companies from 2025 to 2027 that invest in movable assets. It serves as a time-limited incentive to boost investments. This measure creates clear advantages for companies that implement their investment plans during this period. According to a 2023 KPMG report, similar accelerated depreciation measures in other countries have led to a 12% increase in capital expenditure on qualifying assets, suggesting that German companies could experience a comparable surge if they act within the window.

How Does the Tax Calculation Work?

In addition to the usual depreciation rates, companies can claim 30% of acquisition costs as special depreciation in the first year of use. This additional amount reduces taxable profit in the year of acquisition, providing direct relief. Standard depreciation methods remain in place and are supplemented by this bonus. For example, if a company invests €500,000 in eligible digital infrastructure, it can immediately deduct €150,000 in the first year, improving cash flow and freeing up capital for further innovation.

Business Transformation Through New Opportunities

More Liquidity and Lower Investment Risk

The 30% super depreciation has the potential to fundamentally change how companies assess investments. Studies show that green and digital investments can increase by 10 percentage points as a result. This is especially exciting for projects that require high upfront investments—such as new technologies or sustainable solutions that typically have longer payback periods. The shortened tax depreciation period makes such projects significantly more attractive. Additionally, according to economic researchers, the expanded loss carryforward channels 10% more risk capital into research and development. In short: The super depreciation creates financial leeway, enabling companies to pursue transformation projects that might otherwise have been put on hold. At the same time, it facilitates strategic realignment towards ESG goals. The International Energy Agency (IEA) notes that such targeted fiscal incentives can accelerate the adoption of clean technologies, with countries like the UK and US reporting up to 15% higher investment rates in sectors benefiting from bonus depreciation schemes (IEA Energy Technology Perspectives 2023).

ESG Goals and Climate Protection in Focus

With the super depreciation, sustainable business practices become not only more attractive but also more tangible. Companies can specifically invest in energy-efficient systems, emission reduction technologies, and digital control systems. Studies show that tax relief through accelerated depreciation measurably improves companies’ ESG performance. These investments have far-reaching effects—from better working conditions and optimized supply chain management to increased environmental protection. For instance, a Harvard Business Review analysis found that firms integrating tax incentives with ESG initiatives reported a 20% improvement in sustainability ratings and a 12% reduction in operational emissions within three years (Harvard Business Review).

Another advantage: the connection to the CSRD reporting obligation. Companies investing in sustainable technologies benefit not only from tax relief but can also achieve their compliance goals and reduce capital costs. ESG-compliant practices demonstrably lead to better financing conditions and create strong incentives to drive green innovation. The combination of financial relief and ESG focus also strengthens competitiveness, especially in the technology sector. According to McKinsey, companies with robust ESG strategies and transparent reporting enjoy up to 10% lower cost of capital and greater investor confidence (McKinsey ESG Value Creation).

Technology Adoption as a Competitive Advantage

Germany is known for its pioneering spirit in technology and sustainability—ideal conditions for linking tax incentives with forward-looking technologies. The super depreciation gives companies the opportunity to invest in innovations that will secure their market position in the long term. IoT technologies, in particular, play a key role here. Intelligent energy management systems, predictive maintenance solutions, and optimized supply chain systems are just a few examples of how companies can cut costs while positioning themselves as responsible market leaders. According to a 2022 Statista survey, 68% of German manufacturers plan to increase IoT investments in the next three years, citing tax incentives as a key driver (Statista).

It’s also interesting to look at start-ups: Around one-third of German start-ups are already active in the green economy. Established companies can benefit from this innovation lead. With the super depreciation, green technologies can be implemented more quickly, accelerating transformation and opening up new market opportunities. Companies that act now secure a clear competitive edge in an increasingly sustainability-oriented market.

Benefits for Start-ups and SMEs

Capital Efficiency for Early-Stage Companies

Start-ups and small businesses often face the challenge of using their limited financial resources wisely. The 30% super depreciation offers an attractive way to optimize capital planning. While larger companies already benefit from this regulation, new opportunities arise for young companies to specifically strengthen their growth financing. The European Investment Bank highlights that targeted tax incentives can increase early-stage tech investments by up to 18% (EIB Economic Investment Report 2023).

The tax package planned by the federal government, totaling 46 billion euros for the years 2025 to 2029, could be a real game changer for start-ups. Companies have the opportunity to deduct 30% of their investment costs each year over a three-year period. For a start-up investing, for example, 100,000 euros in technology, this means a tax relief of 30,000 euros in the first year—a significant advantage during a critical growth phase.

In addition, expanded research funding amplifies this effect. Start-ups with high R&D expenses, in particular, can thus afford ambitious projects. Alongside improved liquidity, investment-ready assets create new opportunities to drive innovation.

Eligible Investments and Equipment

The super depreciation covers investments in digital infrastructure and sustainable technologies. This includes, for example, cloud servers, AI software, or IoT sensors that help companies implement innovative business models.

Another example: Companies can immediately depreciate 75% of the purchase price of electric vehicles. This means that an electric van worth 50,000 euros enables a depreciation of 37,500 euros. For start-ups in delivery services or craft businesses, this significantly reduces the costs of modernizing their vehicle fleets.

Energy-efficient machines and systems are also a focus of the funding. Manufacturing companies can thus switch to climate-friendly technologies more quickly while meeting ESG requirements, which are increasingly important for financing and business relationships.

Strengthening Germany’s Innovation Landscape

In addition to direct financial benefits, there is also a strategic dimension: The super depreciation is part of a broader location strategy. The Federal Ministry of Finance emphasizes:

"From 2032, the overall tax burden for companies will be just under 25% instead of the previous 30%. This is an important signal internationally for Germany as a business location."

This long-term perspective not only offers companies planning security, but also strengthens Germany’s overall economic position. The planned reduction of corporate tax from 15% to 10% between 2028 and 2032 creates additional incentives for sustainable growth.

The super depreciation is a direct response to current economic challenges. It enables start-ups and SMEs to invest in new technologies more quickly, create jobs, and develop innovative solutions. Green start-ups in particular benefit, as they can scale their sustainable business models more quickly with government support. This not only strengthens their market position but also contributes to Germany’s climate goals. By combining tax benefits and sustainable growth, Germany becomes more attractive to investors and talent, further energizing the start-up ecosystem.

Combining Tax Benefits with Sustainability Consulting

Uniting Tax Savings and ESG Strategy

The 30% super depreciation not only brings short-term liquidity benefits but also plays a central role in linking tax policy and ESG goals. Governments are deliberately using tax incentives to promote responsible action. At the same time, stakeholders are increasingly paying attention to how tax aspects factor into a company’s risk assessment and strategic direction. This shows how tax relief and sustainable alignment go hand in hand to support the transition to more responsible business practices.

Additionally, ESG reporting gives companies the opportunity to present their tax strategies as a positive contribution to corporate management. The Global Reporting Initiative (GRI) recommends integrating tax and sustainability disclosures to enhance transparency and stakeholder trust (GRI Tax Standard).

Measuring and Making Impact Transparent

Once tax-saving models are linked with ESG goals, it’s crucial to make their impact measurable. Companies need clear approaches to assess and communicate the sustainability effect of investments that fall under the super depreciation. Already, over 10,000 organizations in 100 countries use the GRI standards, which also include tax reporting. Sustainability reports should be integrated into the regular reporting cycle and aligned with global development goals. This involves economic, environmental, social, and institutional indicators.

A practical approach could include benchmarks for CO₂ reduction, energy efficiency, or resource conservation. Such benchmarks help companies continuously evaluate their progress and transparently present their results to external auditors. The World Economic Forum highlights that transparent ESG and tax reporting can lead to a 15% increase in stakeholder engagement and brand value (WEF ESG Tax Transparency).

"Looking at tax reporting through an ESG lens can help businesses build trust and demonstrate their commitment to sustainability and social responsibility." – PwC

The Role of Fiegenbaum Solutions

Fiegenbaum Solutions combines the tax benefits of the 30% super depreciation with targeted sustainability strategies. Their consulting services include the development of ESG strategies, lifecycle assessments (LCA), and support for compliance with standards such as CSRD and CBAM.

The process begins with a detailed analysis of investment opportunities and their potential for sustainable development. Data-driven decision-making processes are introduced that consider both tax benefits and long-term ESG goals. In addition, Fiegenbaum Solutions helps companies assess climate risks and develop net-zero strategies.

A key part of the consulting service is impact modeling. This enables companies to precisely quantify and transparently communicate the effects of their investments—a crucial step as companies increasingly need to establish processes and controls for tax reporting.

Fiegenbaum Solutions helps companies align their tax strategy with their corporate strategy and clearly communicate their tax measures. This helps avoid misunderstandings and build trust. Given that the EY Green Tax Tracker has identified over 1,850 sustainability incentives in 45 countries, this integrated consulting offers a clear advantage for companies aiming for sustainable innovation.

Conclusion

Act Now for Transformation

The 30% super depreciation presents a crucial opportunity to advance the German economy. Companies can also benefit from a 15% climate protection investment premium—up to 30 million euros—as well as annual R&D funding of up to 3 million euros.

Studies show that such tax incentives can significantly boost investments in qualified capital. The estimated elasticity is between 6 and 14, underscoring the effectiveness of these measures. These figures highlight how strongly current incentives can support transformation. According to the OECD, countries with similar bonus depreciation schemes have seen up to 14% increases in private investment (OECD Tax Incentives).

But these measures are just the beginning—the outlook shows that even bigger steps are ahead.

Outlook for Future Developments

Germany is pursuing ambitious climate goals: By 2045, climate neutrality is to be achieved, and after 2050, even negative emissions. The Renewable Energy Act of 2023 sets clear targets, including increasing the share of renewable energy in electricity consumption to 80% by 2030—a significant rise compared to the original 65%.

With measures such as the 2022 "Easter Package," which provides for higher auction volumes and accelerated approval procedures, investments in sustainable technologies are actively promoted.

Germany has ambitious climate targets with the aim to reach climate neutrality by 2045 and achieve negative emissions after 2050

These ambitious targets make it clear that companies must set a course for transformation early on. Given national debt of 2.3 trillion euros, the possibilities for government funding are limited. Future measures will therefore be even more focused on efficiency and precision. Those who lay the foundation for sustainable transformation today will benefit in the long term from the combination of climate protection and economic success.

The combination of tax incentives, ESG goals, and digital innovation forms the foundation for this change. The 30% super depreciation marks the beginning of a new era in German economic policy—an era in which sustainability, profitability, and technological progress go hand in hand.

FAQs

How can companies strategically use the 30% super depreciation to advance their ESG goals at the same time?

How Companies Can Make the Most of the 30% Super Depreciation

To use the 30% super depreciation effectively while supporting environmental and social (ESG) goals, a strategic approach is essential. Companies should direct their investments specifically toward sustainable technologies. This includes renewable energy, energy-efficient machinery, or digital infrastructure. Such measures not only help reduce operating costs in the long term but also make a significant contribution to achieving climate targets.

Another step is to directly anchor ESG goals in the corporate strategy. This means defining concrete measures to reduce CO₂ emissions and promote social responsibility. To reduce the financial burden of such projects, companies can draw on government funding programs and tax incentives. With careful planning, tax benefits can be fully leveraged while achieving sustainable progress.

How can start-ups and SMEs use the 30% super depreciation to drive innovation and growth?

The 30% Super Depreciation: A Boost for Innovation and Growth

The 30% super depreciation opens up an attractive opportunity for start-ups and small and medium-sized enterprises (SMEs) in Germany to facilitate investments in new technologies and infrastructure. With this regulation, 30% of investment costs for digital infrastructure, machinery, or other technologies can be deducted for tax purposes within the first three years. This provides noticeable liquidity relief and reduces the financial pressure that often comes with modernization projects.

For SMEs and start-ups, this means they can realize necessary investments more quickly to remain competitive and future-proof their business models. Whether it’s launching sustainable projects or adapting to an increasingly digital economy—the super depreciation helps achieve these goals by lowering financial barriers.

But the benefits go beyond the purely financial aspect. This regulation is a strategic tool that helps companies actively drive transformation and growth. It paves the way to a stronger market position and helps meet the demands of a modern, climate-friendly economy.

How does the 30% super depreciation support companies in adopting sustainable technologies and strengthen their competitiveness?

The 30% Super Depreciation: A Powerful Incentive for Companies

The 30% super depreciation offers companies an attractive way to invest in future-oriented technologies and sustainable solutions. The key: 30% of investment costs—whether for machinery, buildings, or digital infrastructure—can be deducted for tax purposes within the first three years. This significantly eases finances, improves liquidity, and lowers the entry barriers for projects focused on innovation and sustainability.

Another advantage of this regulation is that it accelerates modernization and sustainable initiatives. Companies can respond more quickly to market changes, strengthen their innovative capacity, and secure their competitiveness in the long term. The 30% super depreciation is thus a decisive lever for actively supporting the transition to a climate-friendly and digitalized economy.