Tax bonus for skilled trades services remains in place

The tax credit for skilled trades services will remain. The coalition committee has agreed on this. However, it will be reduced from 20 to 15 percent of 6.000 euros.

This article is part of the special feature " Tax bonus for craftsmen's invoices: What you should know".

The leaders of the CDU/CSU and SPD have reached an agreement on a reform package in the coalition committee. Important news for the skilled trades: the tax credit for skilled trades services will remain, albeit slightly reduced. "The discussion about skilled trades services is off the table," said CSU leader Markus Söder , who presented the reform package with the leaders of the CDU/CSU-SPD coalition in Berlin. The tax deductibility of skilled trades services will be reduced from 20 percent to 15 percent of €6.000 . This means tax relief will decrease from up to €1.200 to up to €900 per year.

The so-called skilled trades bonus was slated for complete elimination in recent months. The German Confederation of Skilled Crafts (ZDH) had strongly advocated for its preservation and held numerous discussions.

Tax bonus: an important incentive for skilled trades

Jörg Dittrich, President of the German Confederation of Skilled Crafts (ZDH), considers the preservation of the tax bonus an important outcome for the skilled trades. "The tax bonus continues to provide a significant incentive for legal employment, energy-efficient renovations, and the prevention of undeclared work." The reduction in the subsidy that has now been implemented is a "reasonable compromise," according to Dittrich.

Private customers can claim 15 percent of the labor costs, up to a maximum of €6.000, each year for renovation and refurbishment work within their own homes. Once they reach the maximum amount, they receive a tax bonus of €900.

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Important: Only labor costs are tax-deductible, not material costs, and the money must be received in the tradesperson's account. Cash payments are not accepted.

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