Electric Vehicle Supply Chain investment tax credit

The Government of Canada announced a refundable 10% Electric Vehicle Supply Chain investment tax credit on the capital cost of eligible building property used in three key EV supply chain segments (EV assembly, EV battery production, and cathode active material production) as of January 1, 2024. To be eligible, a corporation would be required to invest at least $100 million in each of the three EV supply chain segments. The credit rate would be reduced to 5 per cent for property that becomes available for use in 2033 or 2034. The credit would no longer be in effect for property that becomes available for use after 2034. The Electric Vehicle Supply Chain Investment Tax Credit is not yet legislated under Canada's Income Tax Act.

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