The Canadian Trudeau government’s latest budget has set aside $CA435 million ($A458 million) to help accelerate the transition to cleaner vehicles, and its target for all new vehicles to be zero-emission vehicles by 2040.
Under the plan to ensure a transition to zero emissions transport, purchasers of an electric or hydrogen car under $CA45,000 ($A47,400) will receive $CA5,000 ($A5,270) assistance as well as a tax deduction for companies that opt for these vehicles.
The 3 year, $CA300 million ($A315 million) financial incentive measure will become effective this year and will allow all Canadians to benefit from assistance to “go electric” – currently, only residents in two provinces are able to access assistance.
The British Columbia government currently offers $CA5,000 ($A5,270) as an incentive to purchase a zero emissions vehicle while in Quebec, residents can access $CA8,000 ($A8,430) financial assistance.
Companies will also receive a full tax deduction for the purchase of non-polluting vehicles in the first year of commissioning, up to a value of $CA55,000 ($A58,000), including sales tax.
The incentives are in line with a recent interim report from the Canadian Climate Action Advisory Council which recommended an incentive of up to $ 5,000 for zero-emission vehicles or plug-in hybrids for at least two years.
“The incentive should be available for at least a two-year period to help close the gap between the upfront costs of electric vehicles relative to gasoline or diesel models, making electric vehicles more affordable for middle- and lower-income Canadians,” says the report.
The budget also sets aside $CA130 million ($A136 million) to be directed to the Natural Resources Canada over five years for the deployment of EV charging stations starting in 2019-20.
An additional $5 million ($A5.3 million) will be set aside for to enable Transport Canada to work with automakers to put in place zero emissions vehicle sales targets for vehicles with a manufacturer’s list price of less than $CA45,000 ($A47,400).
Bridie Schmidt is lead reporter for The Driven, sister site of Renew Economy. She specialises in writing about new technology, as well as using her technical skills in managing our websites.
