“We are supporting businesses that are making investments today to help protect our environment for future generations.” – Prime Minister Justin Trudeau
A Brief News Commentary by Niagara At Large reporter and publisher Doug Draper
Posted March 3rd, 2020 on Niagara At Large
Just as Canada’s Trudeau government did a year ago, when it moved to make up for the funding Ontario’s Ford Government cut from a province-wide program for planting millions of trees, it is now offering more in the way of financial rebates or incentives to encourage businesses to purchase zero-emission vehicles and other technologies.
One of the many environmental protecting-gutting moves that the Ontario government of Doug Ford made to please its corporate masters in the carbon fuel industry after coming to power two years ago was to quite literally pull the plug on rebates the previous government had put in to stimulate the sale of electric trucks and cars.
After the rebate was cancelled, sales of electric vehicles in Ontario plunged by more than 50 per cent, which appears to have had little impact on the thinking of a Ford government that is spinning its wheels in the middle half of the last century when it comes to transportation and to carbon-based fuels that are contributing to an escalating climate crisis.
So at a time when leading-edge vehicle manufacturers are show zero-emission vehicles for the 21st century at recent car shows in Toronto and across the border in Buffalo, New York, it is good to see Canada’s federal government step up with incentives for businesses, at least, to purchase zero-emission vehicles and other technologies.
I say this mindful of the Trudeau government’s continued costly and dangerous practice of investing billions of our tax dollars on pipelines and other infrastructure for Alberta tar sands operations few other governments or financial institutions in the world would invest another dollar in.
But at least this offering of incentives for purchasing zero-emission vehicles – as far away as it is from the same government doing a split-brain thing with its subsidizing of dirty carbon operations – is another step, however big or small, in the direction of building a 21st Century economy in Canada.
Now here is the Trudeau government’s news release on this move –
Toronto, Ontario – Canadians expect their government to take ambitious action to protect our environment, while growing our economy and creating new jobs and opportunities for workers and businesses.
To do this, we must support measures to accelerate Canada’s clean energy transition and help our businesses adopt the sustainable technologies of the future.
This March 2nd, at the global mineral exploration and mining convention hosted by the Prospectors & Developers Association of Canada, the Prime Minister, Justin Trudeau, announced that the government intends to propose a new incentive that would make it more affordable for Canadian businesses to invest in zero-emission vehicles and automotive equipment.
To help Canada achieve its climate goals and keep our industries competitive, the Government of Canada intends to extend the existing zero emission vehicle incentive to include off-road vehicles. This incentive would provide a 100 per cent write-off of the purchase cost of eligible zero-emission vehicles and automotive equipment in the year they are put in use.
This new incentive would encourage businesses, including in sectors like mining, transportation, and agriculture, to take advantage of opportunities to upgrade to newer, cleaner technologies.
“We are supporting businesses that are making investments today to help protect our environment for future generations.By making it more affordable for Canadian businesses to make the switch to zero-emission technologies, we can help accelerate our transition to a low-carbon, clean-growth economy and create good middle-class jobs.” – The Rt. Hon. Justin Trudeau, Prime Minister of Canada
“Building on measures announced in Budget 2019, this new incentive would make it easier for more businesses to be a part of the clean economy and invest in the technologies of the future. By supporting businesses to convert to zero-emission fleets and equipment, we can ensure they will have more money to invest and create jobs.” – The Hon. Bill Morneau, Minister of Finance
“Our government believes in the power of clean technology to create jobs and drive innovation. With today’s announcement, we are proud to continue helping Canadian industry seize the momentum of this clean growth century, so that Canadians can benefit from this fast-growing market now and in the future.” – The Hon. Seamus O’Regan, Minister of Natural Resources
* The Government of Canada intends to expand the temporary incentives announced in Budget 2019 for on-road vehicles, so that incentives would now also apply to off-road vehicles and automotive equipment. This proposed tax relief in support of increased investment on the part of businesses is estimated at $62 million over the 2020-21 to 2024-25 period.
* Since March 19, 2019, businesses have been able to claim 100 per cent of the cost of the purchase of on-road passenger vehicles up to a limit of $55,000 per eligible vehicle purchase.
* Under this new incentive, to be eligible for an income tax deduction of 100 per cent, vehicles would need to be available for use before 2024. The deduction allowance would decrease to 75 per cent for 2024 and 2025, and would decrease to 55 per cent for 2026 and 2027. Vehicles that are not available for use before 2028 would not be eligible for the accelerated deduction allowance.
* Zero-emission vehicles <https://www.tc.gc.ca/en/services/road/innovative-technologies/zero-emission-vehicles.html>
* Business Investment in Zero-Emission Automotive Vehicles and Equipment <https://www.canada.ca/en/department-finance/news/2020/03/business-investment-in-zero-emission-automotive-vehicles-and-equipment.html>
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