Fiscal support for businesses: Investment tax incentives can boost employment

Abstract

"Tax incentives for business investment are commonly used to promote economic growth and employment. New empirical evidence on the German investment tax credit programme (Investitionszulagengesetz), introduced after reunification, shows that many of the expected effects do indeed materialise. Building on these findings, a model-driven evaluation of the current Investitionssofortprogramm suggests that its effectiveness will depend on whether the labour supply can meet the additional demand." (Author's abstract, IAB-Doku) ((en))

Cite article

Lerche, A. (2025): Steuerliche Förderung von Unternehmen: Staatliche Anreize für Investitionen können die Beschäftigung steigern. (IAB-Kurzbericht 26/2025), Nürnberg, 8 p. DOI:10.48720/IAB.KB.2526