Expanding Tax Support for Business Investment in Zero-Emission Vehicles

Source: International Energy Agency
Last updated: 22 July 2021

On March 2, 2020, the government proposed to expand a 100 per cent tax write-off for business investments in eligible zero-emission vehicles to include a wider array of eligible automotive equipment and vehicles.


It  proposed to provide a temporarily enhanced first-year capital cost allowance rate of 100 per cent for eligible zero-emission automotive equipment and vehicles that do not benefit from the accelerated rate provided by Classes 54 and 55. These equipment and vehicles would be included in a new Class 56.


This extension of Class 54 and 55 would apply to eligible used zero-emission vehicles acquired on or after March 2, 2020, and that become available for use before 2028.

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