GE - Draft law to promote investments by funds in renewable energies and infrastructure

30/07/2024

On May 21 2024, the Bundesfinanzministerium (Federal Ministry of Finance) published a discussion draft of a law to promote investments by funds in renewable energies and infrastructure. The draft is intended to enable the fund industry to channel urgently needed capital from private investors such as pension funds and private individuals into the financing of infrastructure projects within a secure legal framework.

The draft enables real estate funds to construct and operate so-called rooftop systems without restriction, both under regulatory and tax law, as well as to make investments in infrastructure project companies whose business object is limited to renewable energies – as an addition of up to 15 percent of the fund's value. In addition, the draft also creates legal certainty in tax law for investments in infrastructure project companies.

The new laws described are to be implemented from January 1 2025 and apply to income received by an investment fund after December 31 2024.