New type of vehicle - Category of depreciable
property
Revenu Canada has added new eligible Zero Emission
Vehicle (ZEV) Types in class 54 or 55.
A Zero Emission Vehicle means a vehicle owned by the
taxpayer that meets all the following conditions:
-
Is a plug-in hybrid with a minimum battery capacity
of 7 KWh or is entirely:
o
Either electric:
o
Either powered by hydrogen:
-
Is acquired and ready to be commissioned after March
18, 2019, and before 2028:
-
Has not been used or acquired for use for other
purposes before it has been acquired by the taxpayer:
-
Is a vehicle for which an amount has not been
deducted as CCA and a final loss has not been deducted by another
person or partnership:
-
Is a vehicle for which:
o
A choice has not been made to be included in category
54 or 55.
o
Assistance was not provided by Government of Canada
under the new incentive announced on Marc 19, 2019.
Category 54 includes Zero-emission vehicles that
would otherwise be included in Category 10. (Most motor vehicles
that do not fall into any other category) or 10.1 (car over $30,000
before sales taxes).
The second, Category 55, includes Zero=emission vehicles that
would otherwise be included in Category 16.
For Class 54, a limit of $55,000 (plus sales taxes) applies to
the amount of CCA applicable to each Zero-emission passenger
car.
An enhanced CCA for the first year is offered based on a
phase-out as follows:
· 100% after March 18,
2019, and before 2024.
· 75% after 2023 and
before 2026.
· 55% AFTER 2025 AND
BEFORE 2028.
We suggest that you consult the following links:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/capital-cost-allowance/classes-depreciable-properties/zero-emission-vehicles.html
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/motor-vehicle-expenses/type-vehicle-you.html
ID: 20220228103126DEX.xml
Webpage: KPA310-20220228103126DE.htm
