British Columbia’s (BC) electric vehicle (EV) rebate program has proven popular over the years. To the extent, it has severally run out of funds. However, this has prompted concern that perhaps the program has not been assisting ordinary citizens, but rather those that could have easily afforded such vehicles even without a rebate.
Now the provincial government is seeking to correct this issue by linking rebate eligibility to income level. According to the Ministry of Energy, Mines, and Low Carbon Innovation, only individuals with an income of up to $80,000 or households with an income of up to $125,000 will qualify for the maximum rebate.
Beyond this level, the amount a person or household qualifies for will decrease on a sliding scale. This is for a person with an income of over $100,000 or a household with incomes of over $165,000. From this level, the person or household is no longer eligible for a rebate.
The ministry noted that over 90% of BC residents qualified for an EV rebate and could realise savings as high as $9,000 on such purchases when the provincial rebate was combined with federal incentives. Minister of Energy, Mines, and Low Carbon Innovation, Bruce Ralston, stated that the improvements to the program were intended to make EVs more affordable and accessible to more families. The changes to the rebate program will complement the decision made earlier this year to exempt EVs from provincial sales tax.
In addition to linking eligibility to income, the ministry also confirmed that the maximum provincial rebate amounts would be boosted. For the purchase or lease of battery electric vehicles (BEV), fuel-cell electric vehicles (FCEV), and long-range plug-in hybrid vehicles (PHEV), the rebate amounts were increased to a maximum of $4,000 from $3,000. The maximum provincial rebate on lower-range PHEVs was also boosted to $2,000 from $1,500.
The government is also expanding the range of EVs that would qualify for rebates. Initially, there was a price cap of $55,000 on compacts and full-size cars. Now, the government intends to support families and businesses that need larger EVs by introducing a second category of EVs such as minivans, SUVs, and pickup trucks whose retail price would need to be capped at $70,000.
The government is, however, also being called upon to support the EV second-hand market. According to Clean Energy Canada, the proposed $4,000 tax credit on used EVs being considered by the US Congress could see the Canadian market lose its used EV inventory south of the border. With 60% of auto sales being in the second-hand market, the government is being advised to expand its incentives to used buyers, a move that would benefit lower and middle-income earners.
Contact Accountancy Insurance
We would love to hear from you.
About Accountancy Insurance
Thousands of accounting firms offer our tax audit insurance solution, Audit Shield to their clients. Find out why.