Department of Finance Canada opened consultation on draft legislative proposals for the Electric Vehicle Supply Chain investment tax credit.
Budget 2024 proposed the credit as a refundable investment tax credit equal to 10% of the capital cost of eligible building property.
The credit would apply to qualifying electric-vehicle supply-chain segments, including specified EV assembly, battery production, and cathode active material production activities.
The policy goal is to support capital investment in Canada's EV supply chain by lowering the after-tax cost of qualifying facilities.
Finance Canada invited comments on the draft legislation and explanatory notes by March 14, 2025.
The consultation matters for manufacturers and investors because draft legislation defines the boundaries of the credit: which property qualifies, which activities count, and when a project can rely on refundable tax support.