Are you in the market for a new vehicle? The Government of Canada has come up with tax incentives to steer taxpayers towards purchasing zero-emission vehicles in efforts to reduce greenhouse gas emissions in Canada.
What is a Zero-emission vehicle?
The CRA has defined zero-emission vehicles into the following categories.
- Plug-in hybrid
- Electric
- Powered by hydrogen
Not only will you be saving our beautiful country from greenhouse gases, but you will also be saving on your tax bill too. For business owners, the incentive is huge and adds up quickly if you have a fleet of vehicles. Here is how it works.
Zero-emission vehicles may qualify for a 100% CCA write-off in the year of acquisition up to a maximum cost of $55,000 plus sales tax.
Also, a new federal purchase incentive of up to $5,000 will be available for zero-emission vehicles with a selling price less than $45,000 for 2019-20.
Contact Argento CPA if you have any questions about the tax implications of purchasing or leasing zero-emission vehicle!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
