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Investment Deduction for Small Businesses (§7g EStG)

Investitionsabzugsbetrag und Sonderabschreibung (§ 7g EStG)

Deduct up to 50% of planned equipment costs from profit up to 3 years before buying (max EUR 200,000 per business), plus up to 40% special depreciation; a tax deferral, not a grant. Provided by Federal tax law (Finanzamt).

Germany (nationwide)Tax creditEquity-free
Official page

Check if you qualify for Investment Deduction for Small Businesses (§7g EStG)

Answer a few questions about you and your project. The co-pilot opens Investment Deduction for Small Businesses (§7g EStG) for you and shows what already fits, what blocks you and what to do next.

  • Concrete reasons, not a score
  • Deadline and first steps
  • Other programs that fit you
Check my fit

Key facts

Amount
Deduct up to 50% of planned equipment costs from profit up to 3 years before buying (max EUR 200,000 per business), plus up to 40% special depreciation; a tax deferral, not a grant
Duration
investment within 3 years after the deduction year
Type
Tax credit
Who receives it
Founder or team
Equity
Equity-free
Repayable
Unclear
Stages
Revenue, Incorporated
Solo founders
Yes
Full-time required
No
Company required
No
University link required
No
Application languages
DE
Location
Taxable business with a domestic establishment

Who can apply

  • Profit in the deduction year not above EUR 200,000
  • Movable, depreciable fixed assets (e.g. computers, machines)
  • Asset used exclusively or almost exclusively for business in a German establishment through the following year
  • Claimed in the tax return; no application

What usually blocks applicants

  • No taxable profit yet (pre-revenue)
  • Planned investment not made within 3 years (deduction reversed with interest)
  • Software-only or intangible spend does not qualify

Deadline and timing

Claimed in the annual tax return.

Frequently asked

How much does Investment Deduction for Small Businesses (§7g EStG) pay?

Deduct up to 50% of planned equipment costs from profit up to 3 years before buying (max EUR 200,000 per business), plus up to 40% special depreciation; a tax deferral, not a grant

Who can apply for Investment Deduction for Small Businesses (§7g EStG)?

Stages: revenue, incorporated. Solo founders can apply. You can apply before registering a company. Location: Taxable business with a domestic establishment. The full list of conditions is under Who can apply above.

When is the Investment Deduction for Small Businesses (§7g EStG) deadline?

Claimed in the annual tax return.

Where do I apply for Investment Deduction for Small Businesses (§7g EStG)?

On the official page: https://www.gesetze-im-internet.de/estg/__7g.html. Applications are accepted in DE.

Do I have to pay back Investment Deduction for Small Businesses (§7g EStG) or give up equity?

Whether it is repayable is not stated clearly; confirm with the provider. It takes no equity.

Can solo founders apply for Investment Deduction for Small Businesses (§7g EStG)?

Yes, solo founders can apply.

Sources and verification

Checked on 19 October 2026. Facts read directly from the official source. This page is orientation, not an eligibility decision.

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