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Model Y for business use in Canada - tax credits

uottawa

New Member
Dec 11, 2019
3
1
Ottawa
I am looking to purchase a Model Y standard range for business purposes, I was wondering if anyone else has gone through this process before and if they have had any trouble with CRA on this front.

The information available on CRA's website is below. It seems like Model Y should be eligible for 100% write off.

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To be eligible under Class 54 or Class 55, a zero-emission vehicle needs to meet all the following criteria:

  • You acquired the zero-emission vehicle after March 18, 2019
  • An assistance has not been paid by the Government of Canada under the federal purchase incentive
  • The vehicle has not been used, or acquired for use, for any purpose before you acquired it
  • The vehicle is essentially a motor vehicle designed or adapted for use on streets and highways (excluding a trolley bus or a vehicle designed or adapted to be operated only on rails)
  • Is a plug-in hybrid with battery capacity of at least 7kWh or is fully:
    • electric; or
    • powered by hydrogen.
An enhanced first-year CCA with the following phase-out period is available:

  • 100% after March 18, 2019 and before 2024

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So my understanding is that since this purchase is an eligible write off, the business owner should not have to pay corporate tax on this value (maximum 55,000), also if the business is collecting GST/HST from its clients the business should not have to pay back collected GST/HST on 55,000.

I hope someone else understands this topic better than I do and/or has walked this walk and can guide me or inform me on possible pit-falls.

Thanks
 
  • Like
Reactions: kpan21
I am looking to purchase a Model Y standard range for business purposes, I was wondering if anyone else has gone through this process before and if they have had any trouble with CRA on this front.

The information available on CRA's website is below. It seems like Model Y should be eligible for 100% write off.

--------


To be eligible under Class 54 or Class 55, a zero-emission vehicle needs to meet all the following criteria:

  • You acquired the zero-emission vehicle after March 18, 2019
  • An assistance has not been paid by the Government of Canada under the federal purchase incentive
  • The vehicle has not been used, or acquired for use, for any purpose before you acquired it
  • The vehicle is essentially a motor vehicle designed or adapted for use on streets and highways (excluding a trolley bus or a vehicle designed or adapted to be operated only on rails)
  • Is a plug-in hybrid with battery capacity of at least 7kWh or is fully:
    • electric; or
    • powered by hydrogen.
An enhanced first-year CCA with the following phase-out period is available:

  • 100% after March 18, 2019 and before 2024

-------------
So my understanding is that since this purchase is an eligible write off, the business owner should not have to pay corporate tax on this value (maximum 55,000), also if the business is collecting GST/HST from its clients the business should not have to pay back collected GST/HST on 55,000.

I hope someone else understands this topic better than I do and/or has walked this walk and can guide me or inform me on possible pit-falls.

Thanks
My understanding of this is that you are right .if you haven't bought any ev under this in the past you are good to go .
 

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