Federal Canadian Budget 2024: $5,000 grant for zero-emission vehicles maintained

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Canada’s Finance Minister, Chrystia Freeland, tabled the latest version of the federal budget. Among other things, the $5,000 subsidy for the purchase of a zero-emission vehicle is maintained.

The $5,000 subsidy will continue to be available to Canadian consumers who purchase a zero-emission vehicle. The budget also announces an investment of $1 billion for the development of charging stations.

The official document, which runs to more than 480 pages, states that since the introduction of the Zero Emission Vehicle Incentive Program in 2019, the proportion of new vehicle sales has risen from 3% to 11%. This program provides a subsidy of up to $5,000 for EVs. The subsidy is $2,500 for a plug-in hybrid vehicle with a range of at least 50 kilometres.

The government adds that no fewer than 450,000 new zero-emission vehicles were purchased or leased between 2019 and last September.

Starting in 2024-2025, the Government of Canada intends to contribute the sum of $607.9 million over a two-year period to support Transport Canada with this program.

With the continuation of the subsidy, the government says it is ensuring that electric vehicles remain affordable.

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1 billion for charging stations

As part of its plan to provide a clean and safe environment for the next generation, the federal government also announced the investment of $1 billion for the construction of charging stations in Canada. The number was not specified.

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Tax credit for investment in the electric vehicle supply chain

To encourage investment in Canada’s electric vehicle manufacturing supply chain, the budget also provides for a tax credit. This incentive is expected to cost $725 million over five years. This measure will be effective from 2024-2025.

Further details on this measure will be announced in the coming days.