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Canadian PM introduces off-road electric vehicle tax credit Metal Tech News Weekly Edition – March 4, 2020
Prime Minister Justin Trudeau introduces tax incentives for off-road electric vehicles during a March 2 speech at the Prospectors & Developers Association of Canada annual mining convention in Toronto.
This electric bus transports workers at Teck Resources' steelmaking coal operations in British Columbia. Earlier this year, Teck announced plans to be carbon neutral by 2050 (click photo for a Feb. 12 Metal Tech News article).
Prime Minister Justin Trudeau has rolled out plans to get more electric vehicles into and less carbon dioxide emitting from Canadian mines in the coming years.
To help Canada achieve its climate goals and keep its mining sector and other industries competitive, the federal government plans to include off-road vehicles to the current zero-emission incentive for electric vehicles on Canadian highways.
Trudeau introduced the plan during a March 2 speech at the Prospectors & Developers Association of Canada's annual mining convention in Toronto.
"Electric vehicles are not only for city streets. They are also for cleaner mining operations that protect the health of mineworkers and the environment," Trudeau said.
Since last March, Canadian businesses have been able to claim 100% of the cost of the purchase of on-road passenger vehicles up to a limit of C$55,000 per eligible vehicle purchase.
Under this new incentive, businesses will be able to write off 100% of the costs for zero-emissions mine trucks, loaders, tractors and other equipment put to work prior to 2024. This deduction would drop to 75% off-road EVs that are available for use in 2024 and 2025, and 55% for 2026 and 2027.
"Building on measures announced in budget 2019, this new incentive would make it easier for more businesses to be a part of the clean economy and invest in the technologies of the future," said Canada Minister of Finance Bill Morneau. "By supporting businesses to convert to zero-emission fleets and equipment, we can ensure they will have more money to invest and create jobs."
The federal government estimates that the off-road program will cost around C$62 million over the next five years.
"We are supporting businesses that are making investments today to help protect our environment for future generations," said Trudeau. "By making it more affordable for Canadian businesses to make the switch to zero-emission technologies, we can help accelerate our transition to a low-carbon, clean-growth economy and create good middle-class jobs."
The Prime Minister expects that incentivizing the implementation of EVs in Canadian mines will create a multiplying effect on his administration's commitment to achieve net-zero carbon emissions in Canada by 2050.
"To produce high-density batteries and wind turbines, you need copper, nickel and cobalt," Trudeau told the mining delegates at PDAC. "To build a solar panel, you need 19 metals and minerals – Canada is home to 14 of them."
He hopes the off-road EV tax incentives will reduce the carbon dioxide exhaust emitting from Canadian mines as they supply the increasing quantities of metals demanded by a growing global renewable energy sector.
With more than 16 years of covering mining, Shane is renowned for his insights and and in-depth analysis of mining, mineral exploration and technology metals.
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