Under the previous government (Vivaldi), as you know, the tax deduction for cars was tinkered with heavily. Only 100% electric cars still stood out. In fact, electric cars purchased in 2025 and 2026 remain 100% deductible for their entire lifetime.

For a later purchase, a lower percentage will apply that drops over the years (95% for a 2027 purchase, 90% for a 2028 purchase, … to 67.5% for a purchase starting in 2031).

That same government did not like hybrid. Hybrid cars, on the other hand, were lumped in with fossil-fuel cars by Vivaldi. That means that if you buy such a car in 2025, there is still a (limited) tax deduction based on the gram formula until the end of 2027. Starting in 2028, the hybrid car is no longer deductible at all. If you purchase the car after 2025, there is no tax deduction even from the beginning.

Arizona plans are hybrid though….

The coalition agreement of the new federal government explicitly states that it is an illusion to think that everyone will already be able to drive 100% electric.

Therefore, they want to revive hybrid cars for tax purposes and it would be as follows:

if such a car is or will be purchased between July 1, 2023 and December 31, 2027, it will be 75% deductible throughout its life; for a purchase in 2028, it will be 65% and for a purchase in 2029, it will be 57.5%.

More so, if the gram formula would result in a more favorable rate for a non-fake hybrid, you may even apply it until the end of 2027. Then again, the fuel costs of hybrid cars would remain deductible at 50% until the end of 2027.

But …

The commitments of the government statement still need to be legislated and only then will we have certainty about the concrete details.