Discussion revolves around vacation accommodations, bedding accessories, and financial enhancements among countries
The German Federal Council has approved a significant tax investment programme on July 11, 2025, aimed at strengthening Germany as a competitive business location. The initiative, known as the Federal Council's Investment Package, offers tax-related incentives to encourage investment within the country.
Key elements of this package include the reintroduction and increase of declining balance depreciation for movable fixed assets acquired between June 30, 2025, and January 1, 2028. This allows for accelerated depreciation rates of up to 30%, or three times the straight-line depreciation rate.
Another significant aspect is the extension and increase of the research allowance. A new flat-rate surcharge of 20% on overheads and operating costs has been introduced, and the maximum assessment basis has been raised from €10 million to €12 million per year. This potentially increases the maximum research allowance to €3 million annually, or up to €4.2 million for eligible small and medium-sized enterprises (SMEs).
However, the reactions from states and municipalities regarding potential tax losses due to these incentives are not explicitly stated in the search results. Given the nature of tax investment incentives, it is likely that these local governments may express concern about short-term fiscal impacts due to decreased tax revenues. Such concerns typically arise because local governments rely on tax income to fund services and infrastructure.
In the context of the Federal Council's Investment Package, states and municipalities might worry about potential tax revenue losses in the near term while balancing expectations of longer-term gains from increased economic activity and job creation.
Meanwhile, the IHK Region Stuttgart has welcomed the decision of the Federal Council, with CEO Susanne Herre stating that a lack of care offers is a reason for many employees to work part-time. The Federal Council aims to make it easier for municipalities to provide full-day care for primary school children from the school year 2026/2027. Children in grades 1 to 4 will have a legal claim to full-day care on workdays for up to eight hours, including during school holidays.
The details about how this holiday care will be funded or implemented are not provided in the article. Approximately eight million mattresses are disposed of in Germany annually, and the Federal Council advocates for a circular economy for mattresses. However, the article does not provide any information about the cost or details of the Federal Council's mattress recycling initiative.
The FDP faction leader, Hans-Ulrich Rülke, calls for the state to support the "investment booster". The states welcome the federal government's plans for a tax-based investment quick program. It is noteworthy that a Staatsanzeiger subscription is required to subscribe to topics and save articles.
The Federal Council's decision is based on Resolution Document 208/25. The states and municipalities are expected to bear two-thirds of the tax losses of €30 billion from this program. This issue particularly affects women, according to Susanne Herre. If Germany fails to relieve the economy of taxes during economically crisis-ridden times, it would be a financial political capitulation of public budgets across the board.
Recycling of mattresses is already practiced in France and Benelux countries, and in the future, mattress manufacturers should ensure the recycling of old sleep systems. This article serves as a comprehensive overview of the Federal Council's Investment Package, though specific reactions from states and municipalities to this initiative are not directly covered in the search data.
- Municipalities and states might face financial concerns as they could potentially lose revenue due to the tax incentives offered in the Federal Council's Investment Package, which may impact their abilities to fund services and infrastructure.
- The enactment of the Federal Council's Investment Package, which includes measures such as increased declining balance depreciation and extended research allowances, could have a significant impact on the finance and business sectors, particularly for small and medium-sized enterprises (SMEs).
- The Federal Council's decision to support full-day care for primary school children and initiatives towards a circular economy for mattresses could positively influence education-and-self-development and general-news sectors, respectively, although the details regarding funding, implementation, and reactions from local governments are not yet fully disclosed.
