Electric Vehicle Supply Chain investment tax credit
Current status: Closed
To further incentivize growth in Canadian electric vehicle (EV) supply chains, Budget 2024 announced a refundable EV Supply Chain investment tax credit equal to 10 per cent of the capital cost of eligible building property used in qualifying EV supply chain segments. The details of the credit were announced in the 2024 Fall Economic Statement.
This consultation process sought comments from all interested Canadians and stakeholders on draft legislative proposals that would implement the EV Supply Chain investment tax credit. The consultation ran from February 21, 2025 to March 14, 2025.
Thank you to everyone who participated.
Key questions for consideration
This consultation sought comments and feedback on draft legislative proposals that would allow Canadian taxable corporations that invest in Canada across three EV supply chain segments (EV assembly, EV battery production, and cathode active material production) to receive a refundable investment tax credit on the capital cost of eligible building property used in those EV supply chain segments.
What's next?
Feedback collected through the consultation will be considered and will be reflected, as appropriate, in final legislative proposals to implement the EV Supply Chain investment tax credit. Those proposals will be tabled in Parliament in due course.
While this formal consultation has now concluded, Canadians are welcome to share their ideas and comments with the Department of Finance at any time.