Location Promotion Act: New Leeway for Investment Funds

The so-called Location Promotion Act (Standortfördergesetz, StoFöG) was published in the Federal Law Gazette on 9 February 2026, with its main provisions came into force on 10 February 2026. It provides for a number of measures intended to increase the competitiveness and attractiveness of Germany as a financial centre. These measures include significant changes to investment regulatory and tax law which are aimed at creating a legally secure and European competitive framework for fund investments in renewable energies and infrastructure. Our briefing discusses both the changes to investment regulatory law and the new investment tax regulations. The changes are largely welcome and are also of great relevance beyond fund investments in renewable energies.