Canada’s Department of Finance has announced a consultation on draft legislative proposals on 21 February 2025 to implement Budget 2024’s Electric Vehicle Supply Chain Investment Tax Credit (EVSC-ITC).
Canada’s 2024 Budget announced a refundable EV Supply Chain investment tax credit equal to 10% of the capital cost of eligible building property used in qualifying electric vehicle supply chain segments.
The EVSC-ITC is a refundable tax credit for taxpayers investing in buildings and structures for EV assembly, battery production, or cathode material production. The EV Supply Chain investment tax credit would apply to property acquired and made available for use on or after 1 January 2024. The credit would be reduced to 5% for 2033 and 2034 and would no longer be in effect after 2034.
The government invites all interested Canadians and stakeholders to email their comments to consultation-legislation@fin.gc.ca by 14 March 2025.
