Administered by Government of Canada · Last verified: August 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.
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.