Rumors of Canada’s First Nationwide EV Tax Credit
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For vehicle owners in the U.S., tax credits for electric vehicles might soon be a thing of the past. Some automakers are phasing out the EV tax credit. Additionally, Trump’s latest budget proposal might eliminate the plug-in vehicle tax credit.
For vehicle owners in Canada, however, a nationwide EV tax credit might soon be a new reality. Per Green Car Reports, Liberal Finance Minister Bill Morneau recently proposed a new national budget that would include significant incentives for consumers to purchase EVs.
Canada’s vision for a greener environment
While certain Canadian provinces like British Columbia and Ontario have offered consumers EV tax credits, there hasn’t been a countrywide incentive up till now. Per Morneau, the new EV tax credit is just one step toward achieving the nation’s clean-vehicle goals. “Building a better Canada also means helping people be part of the clean economy—with energy bills that they can afford, and cleaner ways to get around.”
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The incentive and new budget
The new budget will provide Canadian car owners with a discount of up to $5,000 Canadian dollars. One stipulation is that the EV must cost $45,000, which would exclude even the cheapest Tesla vehicle (the Model 3) but include non-Tesla brands like GM.
Besides explicitly establishing the EV tax credit, the new budget also includes verbiage to set aside $300 million for the countrywide tax credits over the next three years. It also involves setting aside $130 million in government funding over the next five years. This will go towards building a new public charging infrastructure to accommodate the expected surge in EVs.
We anticipate more details in the days ahead as Canada decides whether or not to approve the new budget and the proposed EV tax credit.
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News Source: Green Car Reports
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