Climate policy meets tax law

Climate and environmental protection in particular are fundamentally changing the rules of the game for companies. This presents both opportunities and challenges for electroplating companies.

Climate targets, fiscal framework conditions and the EU Green Deal are fundamentally changing the rules of the game for companies. Electroplating and surface technology in particular is facing a profound change. While_{CO2 taxes} and rising energy prices are increasing costs, for example, tax incentives and subsidy programs are opening up room for manoeuvre. Their strategic use can not only reduce the tax burden, but also secure competitiveness in the long term.

Tax policy as a lever for transformation

Six years ago, the EU Commission launched the Green Deal - an investment program worth billions to make Europe the first climate-neutral continent by 2050. The central element? The so-called Fit for 55 package, which includes a far-reaching reform of the Energy Tax Directive in order to achieve a stronger steering effect in favor of climate-friendly energy sources through tax incentives. Instead of levying energy taxes based on volume - for example on the basis of liters in the case of fuels - the actual energy content and the ecological footprint of the respective energy source are to serve as the basis for assessment in future. This reorientation is part of a comprehensive restructuring of minimum tax rates at European level. The planned energy tax tax ranking is considered to be a central instrument: products with a high climate-damaging potential will be taxed more heavily, while low-emission alternatives will receive tax relief. At the same time, existing tax concessions for fossil fuels are to be abolished in their current form.

Climate in the coalition agreement

National measures are also progressing in parallel with such European developments. In terms of transformation, Germany has so far relied on a combined approach of regulatory measures and investment incentives. With a view to the current coalition agreement, the CDU, CSU and SPD have opted for continuity with a sense of proportion: the declared goal remains climate neutrality by 2045, even if the political instruments are to be geared more towards economic realities, flexibility and openness to technology. For example, the Black-Red coalition wants to accelerate the expansion of photovoltaics and wind power, but with a stronger focus on system integration and economic efficiency. In view of the rapid increase in PV systems, the load on the electricity grids is increasing, so investments in grid infrastructure - estimated to cost over 500 billion euros - are to be examined in a more targeted manner.

To stabilize the grid, the future government is relying on new gas-fired power plants that can also be operated with hydrogen - even if there are no concrete timetables for conversion to date. The CDU/CSU has succeeded in ensuring that_carbon capture is also considered as a technology option alongside hydrogen - a strategy that expands the scope for emission-reducing investments, but also attracts criticism from environmental associations.

For sectors with high energy consumption - such as metal processing, chemicals or the cement industry - existing climate protection agreements are to be continued. This enables companies to secure investments in low-emission processes with state support.

The European Emissions Trading System (EU ETS) and national_{CO2 pricing} remain the central control instruments - companies and consumers have been paying 55 euros per tonne since January 2025. This approach is to be further intensified in order to ensure a market-driven transformation path in the long term.

Practical challenges

This opens up new scope for electroplating companies - for example, when investing in_low-CO2 processes, using renewable energies or through government funding programs. At the same time, the reorganization requires a watchful eye on the implementation level, as companies in this sector are particularly affected by climate regulations due to their high energy and resource requirements. The biggest challenges here are the heating of bathroom solutions, the drive of pumps and the ventilation of large halls. They account for up to 60 percent of process costs and are often still largely based on fossil fuels. At the same time, the industry is under pressure to reduce its water consumption and the burden on wastewater treatment plants. Bath and rinse water produced on a daily basis has to be pre-treated at great expense in order to avoid violating limit values. Despite modern filter and separation systems, traces of chromium, nickel or cyanides still escape into the environment, potentially causing high disposal costs in addition to direct pollutant emissions. Insufficiently insulated pipes and outdated exhaust air systems also exacerbate energy loss and reduce the efficiency of existing systems. In addition, targets such as the Carbon Border Adjustment Mechanism (CBAM) focus on the "gray energy" of imported semi-finished products and, if_{CO2 limits} are violated, not only result in price disadvantages, but also criminal and liability risks. These and other requirements make it essential for companies to consistently incorporate technical modernization, water and wastewater recycling and renewable energy concepts into their tax and investment planning in order to remain competitive and climate-compliant in the long term.

Tax relief through special depreciation allowances

To cushion the additional costs, the state provides a whole range of tax relief and funding instruments. One tried and tested means is special depreciation within the meaning of Section 7g (5) of the German Income Tax Act (EStG). Among other things, small and medium-sized enterprises (SMEs) can write off investments in climate-friendly technologies more quickly for tax purposes - up to 40 percent of the acquisition costs in addition to the regular straight-line or declining balance depreciation within five years. The prerequisites: The asset must be movable and demonstrably serve as business assets, be used predominantly for business purposes and the company's profit must not exceed 200,000 euros per year. This regulation is particularly relevant for electroplating companies that invest in modern filter systems, waste heat recovery, process heat optimization or low-emission drive technologies. Electrically powered transport vehicles and charging infrastructures can also fall under this, provided they are mobile and serve the production process.

Investment deduction: tax benefits before the investment

Even before an investment is made, SMEs can claim up to 50% of the expected acquisition costs for tax purposes via the so-called investment deduction amount (IAB) within the meaning of Section 7g (1) EStG - limited to a total of EUR 200,000. However, the three-year investment period should be observed. This provides planning security and liquidity advantages. However, the company's profit may not exceed 200,000 euros per year and profits must be determined in accordance with Section 4 (3) or Section 5 EStG. This instrument is therefore also primarily aimed at smaller electroplating companies, such as specialized contract coaters or suppliers in medical technology or microelectronics.

Degressive depreciation for movable assets

In addition, the EStG currently allows the declining balance method of depreciation for movable fixed assets again. This makes it possible to claim higher depreciation amounts in the first few years after acquisition - a clear advantage when structuring larger investments for tax purposes. Particularly in times of high energy costs and strict environmental regulations, electroplating companies can thus reduce their tax burden in a targeted manner, for example when purchasing new electroplating systems, heat exchangers or energy-efficient process control systems.

Subsidies for energy efficiency and sustainability

In addition to tax relief, the federal and state governments also offer extensive funding programs. For example, the BAFA promotes measures such as compressed air optimization, heat recovery or the conversion to electrically powered process heat as part of the "Energy and resource efficiency in industry" programme. Grants of 20 to 40 percent of the eligible investment costs are possible. The KfW program "Energy Efficiency in Production" also supports investments in modern plant technology with low-interest loans. Those planning larger projects - such as the introduction of hydrogen technology - can also take advantage of European funding instruments such as Horizon Europe, LIFE or the loan offers of the European Investment Bank (EIB). The prerequisite is usually a detailed concept for_{CO2 reduction} or an ESG-compliant corporate strategy.

Strategic planning is the be-all and end-all

In practice, companies that want to take advantage of subsidies and tax incentives need to plan well in advance. And not just because applications have to be submitted before the measure begins. A well-thought-out investment concept with reliable figures, for example on CO₂ savings, forms the basis - as does close coordination with the tax advisor. A strategic approach is economically advisable, especially for small and medium-sized companies in the electroplating and surface technology sector. This is because rising costs for energy, emissions and regulatory verifications can often only be offset by efficiency gains and subsidies. However, those who actively take on this challenge will not only secure tax advantages but also a position as a sustainable partner in an increasingly climate-conscious value chain.