According to foreign media reports, under the background that automakers such as Honda and Toyota are considering new investment in electric vehicles, Canadian Prime Minister Justin Trudeau (Justin Trudeau) will provide more tax breaks to car companies to encourage them to set up electric vehicle factories in the country.
On April 16th, the Canadian federal budget announced a new tax credit of 10% on the construction capital cost of electric car factories, but only if companies invest heavily in other parts of their supply chain in Canada.
The tax credit is expected to cost C $1 billion (US $723 million) by 2035 and add up to the 30 per cent tax cut the country announced last year on equipment costs for electric car manufacturers.
Honda, the budget document shows that the tax credit is designed to encourage companies to “choose Canada for more than one stage of production in the manufacturing process”, a move that will create more jobs and “help consolidate Canada’s leading position in this field.
” The new tax incentives highlight a strategic shift in the Canadian government, which is trying to keep pace with the US as an investment destination for manufacturers.
Last year, Volkswagen, Stellantis and Northvolt all received huge production subsidies to build battery assembly plants in Canada.
But the Canadian government will no longer provide production subsidies for Honda, which is considering investing billions of dollars in electric vehicle projects, according to people familiar with the matter.
Instead, the government hopes that tax breaks will be enough to attract Honda to invest in the country.
The budget developed by Canadian Finance Minister Chrystia Freeland also introduces other plans to promote investment in energy and natural resources projects.
One of these is a C $5 billion loan guarantee program in which the federal government will use its AAA credit rating to help indigenous groups get better terms when borrowing to buy shares in the project.
Oil and gas assets are eligible for loans, which is a major initiative, as some indigenous leaders and industry groups feared that fossil fuel investments would be excluded from loan projects.
The Canadian government is also committed to speeding up the approval of natural resources projects, especially in key mineral areas.
“when opening new mines, we should not spend more than a decade [speeding up approval] to ensure the safety of the key mineral supply chain,” the document said.
” , return to the first electric network home page >.
