It would be wonderful to own one of the new electric cars that everyone’s talking about.  They are great for air quality and sales would surely boost the economy. However, their expense is well beyond this year's budget.  Fortunately for Canadians, the CRA understands this dilemma and are offering a sweet deal. 

The Government offers a write off for zero emission vehicles that are purchased or leased.  This is offered to businesses, those who are self-employed, and local governments as a motivation to reduce pollution caused by transportation vehicles.

The incentive is a 100% write off, up to $55,000, for eligible vehicles. That means if you pay $80,000 for your new Tesla, you can write off $55,000 for tax purposes. So you only really pay  $30,000, which is extremely reasonable for any vehicle today.

Zero Emission Vehicles

A zero emissions vehicle, sometimes called a carbon negative vehicle, is one that has the potential to produce no exhaust emissions, atmospheric pollutants. They must be able to operate without the use of a conventional internal combustion engine, although they may certainly be manufactured with a standard engine. Zero emissions vehicles include: 

•      Battery-electric

•      Plug-in hybrid electric

•      Hydrogen Fuel Cell 

The batter capacity must be at least 7kWh.  Of course those fully electric or hydrogen-powered are eligible. This incorporates light, medium, and heavy duty vehicles. They are perfect for short, predictable routes.  More vehicle options appear on the market all the time, so you will have a good choice for your needs.

If you need more arguments for the purchase, think about these advantages for fleet purchases: 

•      Lower cost of ownership due to the high fuel economy and low operating cost

•      Reduced maintenance

◦       Most don't need oil changes

◦       Less frequent brake service

◦       Routine tire pressure and fluid level checks are necessary

•      Fuel price stability

•      Quiet operation

•      Backup power

•      Apps to help the driver locate local recharging stations.

Experts predict that with less air pollutants like smog and soot, we can expect lower impact from fewer asthma attacks, lost work hours, and premature deaths. Pulmonary problems have been found to disproportionately affect communities of lower-income levels and those living in urban environments.

Electric vehicles will also reduce the need for petroleum, reducing the reliance on other nations to control economic advantages. They also feel the reduced climate damage will impact agriculture as well as the environment in general. As more electricity is generated through renewable sources like solar and wind power, the benefits simply increase further.

Save up to $55K!

All of this together means a great deal when you purchase an electric car.  You will save up to $55,000 right of the top, reduce maintenance costs, and help the environment.  By helping to affect better air quality, you will reduce pulmonary issues and reduce lost work and school days and positively affect the quality of life of thousands of people.

For more information about the tax benefits, contact the Canada Revenue Agency at 1-800-959-5525.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team