Bill to Amend the Energy and Electricity Tax Act: Relief and Modernization Planned
On July 23, 2025, the Federal Ministry of Finance (BMF) published a draft bill to amend the Energy Tax Act and the Electricity Tax Act. The goal is to permanently secure tax relief for businesses while comprehensively modernizing electricity and energy tax laws.
Background of the legislative initiative
The Third Act Amending the Energy Tax Act and the Electricity Tax Act is intended to permanently set the electricity tax relief under Section 9b of the Electricity Tax Act (StromStG) at the EU minimum tax rate for over 600,000 companies in the manufacturing sector as well as in agriculture and forestry.
In addition, the Federal Ministry of Finance (BMF) addresses further points from the coalition agreement—particularly in the areas of electromobility, bidirectional charging, energy storage, the use of renewable energy sources, simplifying decentralized electricity supply, and reducing bureaucracy. The modernization of electricity and energy tax law, which was already initiated during the previous legislative period, is thus being resumed.
Key points of the draft bill
- Permanent electricity tax relief
Companies in the manufacturing sector and in agriculture and forestry are to benefit permanently from an electricity tax reduced to the EU minimum tax rate. The aim is to strengthen the competitiveness of these sectors. - Electric Mobility: End-User Presumption in Tax Law
The end-user presumption at charging points, familiar from energy industry law, will be incorporated into electricity tax law. This eliminates the need for time-consuming case-by-case reviews of complex business models within the charging infrastructure. - Rules for bidirectional charging
Clear guidelines are intended to prevent electric vehicle users from being classified as energy suppliers under tax law and thus becoming liable for tax. - Technology-neutral definition of electricity storage systems
Electricity storage systems are to be redefined to avoid double taxation during feed-in and feed-out—regardless of the technology used. - Simplification of Decentralized Electricity Generation
The previous so-called “plant grouping” will be abolished. In the future, a uniform definition of a plant will apply, based on the location of the respective electricity generation facility. This is intended to simplify the tax exemption for decentralized electricity generation. - Alignment with EU requirements and relief for renewable energy
Electricity and energy tax laws will be aligned with European requirements and streamlined. Electricity from biomass, sewage gas, and landfill gas is to be legally exempt from the electricity tax again, provided it is generated in facilities with an electrical output of up to 2 megawatts—without complex verification systems for sustainable biomass. - Reducing bureaucracy
Reporting and notification requirements will be reduced, for example in tenant electricity projects.
Implications for Businesses
For many businesses, particularly in the manufacturing sector, the permanent reduction in the electricity tax represents a significant financial relief. The planned changes in the areas of electric mobility, electricity storage, and decentralized power supply can also promote investment in modern, sustainable technologies.
Small and medium-sized enterprises in particular benefit from the simplification of regulations and the reduction of bureaucratic obligations. At the same time, the tax relief supports the transition to climate-friendly forms of energy.
Conclusion
The BMF’s draft bill provides both tax advantages and legal clarity for companies operating in the fields of energy generation, electric mobility, and renewable energy. Those wishing to benefit from the relief should closely monitor further legislative developments and factor potential adjustments into their business planning at an early stage.
