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ARTICLE · 29 MAY 2024

Electric Vehicle Supply Chain Tax Credit

On April 16th, 2024, the Federal Government released the 2024 Federal Budget. The Budget introduced various incentives aimed at advancing the Canadian government's clean energy...

CanadaTransport

On April 16th, 2024, the Federal Government released the 2024 Federal Budget. The Budget introduced various incentives aimed at advancing the Canadian government's clean energy initiative and objective of achieving a zero-emission status by 2035. With transportation being one of the main sources of greenhouse gas emissions in Canada, this measure reflects Canada's steadfast commitment to transitioning to a sustainable transportation paradigm, with the goal of achieving 100% zero-emission vehicle sales by 2035.

Among these incentives is the Electric Vehicle Supply Chain Investment Tax Credit (the "EV Supply Chain ITC"). This new credit builds upon the foundation of the Clean Technology Manufacturing Investment Tax Credit (CTM ITC), initially introduced in Budget 2023. The CTM ITC facilitates a 30% tax credit for businesses engaged in the manufacturing of electric vehicles or their components.

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