Status: In the Mediation Committee
Initially, the German Bundestag passed the "Act to Strengthen Growth Opportunities, Investment and Innovation as well as Tax Simplification and Tax Fairness" (Growth Opportunities Act, Wachstumschancengesetz) in its session on 17 November 2023, in the version recommended by the Finance Committee. On 24 November 2023, the Bundesrat addressed the Act – and initially withheld its approval. It convened the so-called Mediation Committee with the aim of a fundamental revision of the Act. The focus is likely to be on measures with significant implications for public budgets. The basis for negotiations is the Act as passed by the Bundestag.
The Wachstumschancengesetz contains a large number of new provisions, the main purpose of which is to relieve the burden on businesses. At the time this client information was prepared, the Wachstumschancengesetz was still in the legislative process. Although the Bundesrat has registered several requests for amendments, the Federal Government intends to pursue the draft bill largely unchanged. We have summarised the key points of the nearly 300-page draft below. Most of the provisions apply to fiscal periods after 31 December 2023.