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FOR IMMEDIATE RELEASE
March 28, 2024 

Canada’s best kept EV secret: The Capital Cost Allowance for zero-emission vehicles  

MONTREAL – Five years ago, on March 19th, 2019, the Government of Canada announced that zero-emission vehicles (ZEVs) would qualify for the Federal Capital Cost Allowance (CCA), benefitting small business owners and self-employed workers. This tax write-off could save thousands of dollars. The problem: This financial perk is as well-known as your cousin’s garage band. 

The amount a self-employed worker or a small business owner can get in return when claiming an electric vehicle (EV) or a plug-in hybrid electric vehicle (PHEV) depends on the price of the vehicle, the province, the tax year and a net revenue. “As of 2021, there were 2.7 million self-employed workers and 1.2 million entrepreneurs in Canada. Those millions of hard-working Canadians may be missing out on a lot of money due to the lack of awareness surrounding the Capital Cost Allowance for ZEVs”, claims Daniel Breton, President & CEO of Electric Mobility Canada. “It’s important that accountants and car sales teams understand how this benefit works for the sake of Canadian entrepreneurs”. 

Electric Mobility Canada (EMC) has created a reference tool that will assist small business owners in determining approximately how much they can expect to receive from claiming their ZEV on their tax returns. Although those who are self-employed were able to claim 100 per cent of their ZEV purchase from 2019 to the end of 2023, they can now claim 75 per cent for purchases made between in 2024 and 2025. Those who purchase ZEVs in 2026 and 2027 will be able to claim 55 per cent.  

“The Capital Cost Allowance for ZEVs paired with provincial incentives, if applicable, is available to help small business owners breathe a little easier both literally and figuratively. Not only does this tax break benefit the owner’s bottom line, it also benefits our environment and health by putting fewer polluting vehicles on the road”, says Breton.  

Electric Mobility Canada  

Electric Mobility Canada Electric Mobility Canada is the unifying and authoritative voice for the transition to electric transportation across Canada. Founded in 2006, EMC is the national industry association that enables and accelerates the transition to sustainable electric mobility through advocacy, collaboration, education, and thought leadership, with the ultimate goal of creating a cleaner, healthier, and more prosperous future for all Canadians.  

Media Contact  

Anna Schuett  

Director of Communications  

Electric Mobility Canada  

anna.schuett@emc-mec.ca  

(514) 787-2757