Administered by Government of Canada · Last verified: July 2026
Businesses that purchase a qualifying zero-emission vehicle (EV, hydrogen, plug-in hybrid) can deduct 100% of the cost in the year of purchase rather than depreciating over many years.
The official program page moved or was archived. The link points at the issuing organization. Please verify program details before applying.
You claim this on your tax return, so the money comes back as a lower tax bill or a refund after you file. If you missed it in a past year, you can often still recover it by adjusting a prior return.
Take the 3-minute quiz to find out, and see every other Canadian program you qualify for at the same time.
Check my eligibilityZero-Emission Vehicle 100% Deduction is generally open to incorporated, self-employed, partnership businesses, in any province or territory. Confirm the full criteria on the official program page before applying.
The estimated value is Full vehicle cost in year 1 (up to $55,000+). The actual amount depends on your eligible costs, the program's budget, and approval.
Claimed on a return, so a missed year can usually be recovered by amending. How far back depends on whether you file personally or as a corporation; confirm the eligible years with your accountant.
1. Confirm the vehicle qualifies as a ZEV under CRA rules 2. Purchase or lease the vehicle in your business name 3. Claim 100% deduction in year of purchase 4. Track business-use percentage for ongoing deductions
Annual: claim on your tax return.