2018-01-31 00:00:00 Expenses English Learn about Ontario's generous rebates for purchasing electric vehicles and charging stations. Review how to apply for these rebates, and... https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2018/02/Man-Happily-Driving-Electric-Car.jpg https://quickbooks.intuit.com/ca/resources/expenses/deductions-incentives-electric-cars/ Learn About Deductions and Incentives for Businesses That Purchase Electric Cars

Learn About Deductions and Incentives for Businesses That Purchase Electric Cars

1 min read

Ontario wants to reduce greenhouse gas emissions, and the province has incentives to get business owners and individuals to help. As of 2018, the province is offering rebates worth up to $18,000 if you purchase or lease plug-in hybrids or battery electric vehicles and level two charging stations.

When you buy an electric vehicle for your business, you help reduce greenhouse emissions. Beyond that, you can advertise the fact that you use electric vehicles, which can be a great addition to your corporate social responsibility statement. Additionally, as long as you get green license plates, your drivers can use the high-occupancy lane, and of course, you save money on fuel.

To qualify for the rebate, you must purchase the vehicle on or after February 10, 2016. It must be highway capable and registered and plated in Ontario. If the battery’s capacity is between 5 and 16 kilowatt-hours, the base rebate is between $6,000 and $10,000.

You receive an extra $3,000 if the battery capacity exceeds 16 kWh and an extra $1,000 if the vehicle seats five or more people. To qualify for these rebates, the manufacturer’s suggested retail price of the vehicle must be less than $150,000 for battery electric vehicles or less than $75,000 for plug-in electric vehicles. If you buy a plug-in electric with a suggested retail price between $75,000 and $150,000, you can just claim a $3,000 rebate, and all vehicles over the $150,000 threshold aren’t eligible for the rebate at all.

Both individuals and businesses can apply for this incentive. You need to complete the EVIP Individual and Business Application Form and submit it to the Ministry of Finance. As of 2018, once you receive the rebate, you can apply for an additional rebate for the purchase of a level two charging station. This rebate is worth 50 percent of the purchase cost up to $500 plus 50 percent of the installation cost up to $500.

Automobile emissions are the leading cause of greenhouse emissions gases in Ontario, and if you want to help reduce emissions, you may want to purchase an electric car or explore similar green programs. Additionally, if you place a charging station at your business, you give your employees with electric cars the bonus of being able to charge their vehicles while they work.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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