The 2019 Federal Budget was recently announced. Here are the highlights for making zero-emission vehicles more affordable. Canada has set a target to sell 100 per cent zero-emission vehicles by 2040, with sales goals of 10 per cent by 2025 and 30 per cent by 2030 along the way.
The Budget 2019 proposes several measures:
To expand the network of electric vehicle charging stations, by providing Natural Resources Canada with $130 million over five years (starting in 2019-20). It also proposes to deploy charging stations at workplaces, in public parkings, commercial and multi-unit residential buildings and in remote locations.
To provide $5 million over five years (starting in 2019-20), to Transport Canada to collaborate with auto makers to meet voluntary zero-emission vehicle (ZEV) sales targets. This will ensure that vehicle supply meets increased demand and Canadian needs.
To provide $300 million over three years (starting in 2019-20), to Transport Canada to encourage more Canadians to purchase ZEVs. This goes toward a new federal purchase incentive of up to $5,000 for electric or hydrogen fuel cell vehicles that have a retail price of less than $45,000.
To further support businesses’ adoption of zero-emission vehicles, Budget 2019 proposes that these vehicles be eligible for a full tax write-off in the year they are put in use.
Qualifying vehicles will include electric battery, plug-in hybrid (with a battery capacity of at least 15 kWh) or hydrogen fuel cell vehicles, including light-, medium- and heavy-duty vehicles purchased by a business. This will encourage all businesses to convert to zero-emission fleets and leave more money to be invested in other productive ways.
The Budget 2019 confirms the Government’s intention to proceed with previously announced tax and related measures, in particular:
The income tax measures announced in Budget 2016 expanding tax support for electric vehicle charging stations and electrical energy storage equipment.
Click here to read the full budget.