New type of vehicle - Category of depreciable propertyRevenu 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:
ID: 20220228103126DEX.xml
Webpage: KPA310-20220228103126DE.htm