17 May 2021

Extended trade tax deduction – New legal provisions on e-mobility, electricity for tenants, and miscellaneous landlord services

On 22 April 2021, the German parliament (“Bundestag”) passed a modification to the so-called extended trade tax deduction (“erweiterte gewerbesteuerliche Kürzung”) with respect to the supply of electricity from renewable energies, the operation of e-charging stations, and miscellaneous services for tenants.

Under these new legal provisions, the “supply” of electricity from renewable energies and the “supply” of electricity for operating charging stations for e-vehicles and e-bikes will not prevent the application of the extended trade tax deduction provided the corresponding revenues do not exceed 10% of annual rental income. Likewise, “supplying” electricity using other generation methods (such as a cogeneration plant) and other services provided by a lessor to a lessee, especially the inclusion of operating facilities within a lease agreement, will no longer prevent the application of the extended trade tax deduction in future provided the corresponding revenues do not exceed 5% of annual rental income.


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Dr. Petra Eckl


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Dr. Dirk Koch


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Dominik Berka

Local Partner*

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Felix Schill, LL.M.


+49 69 710003-199


Stephan Wachsmuth, LL.M.


+49 89 288174-676


For reasons of better readability, we use the gender-neutral generic masculine. However, the information expressly refers to all genders.

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