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Are you aware of the Incentives for Purchasing a New Electric Car?

If you have ever thought about buying or leasing a New electric car (BEV) or plug in hybrid vehicle (PHEV) now may be a great time to do so.    One of the most obvious reasons for switching to electric is the savings in energy costs.    Currently the price of a litre of regular gasoline in Toronto is about $1.20 per litre.

Based on some recent information compiled from information supplied from Natural Resources Canada the cost of energy to use the average mid-sized vehicle is about $2,390 per year to drive 20,000 km about $0.12 per kilometer,  whereas if you were to use electricity to power your vehicle the energy cost you were to would be less then 1/6 of this.   Your annual energy cost would be about $384 or $0.02 per kilometer.      A savings of over $2,000 per year.   Not only a considerable $$ savings but also substantially less greenhouse gas emissions.

Another reason to go green with your car is that currently, Ontario consumers are eligible for a rebate between $5,000 to $8,500 towards the purchase price of their new purchased or leased vehicle.     Among some of the requirements …. the vehicle must be a four wheel car and not a low speed vehicle, and must be licensed in Ontario.    If the vehicle is leased to get the full incentive the lease must be a at least 36 months.    The incentive is based on the capacity of the battery a vehicle with a battery capacity of 17 kwH or more would quality for a $8,500 rebate.

For a summary of the incentives available based on the battery electric vehicles (BEVs) and Plug in Hybrid Electric Vehicles (PHEVs) see the Ontario Ministry of Transportation.

Also if you are an early adopter of electric vehicles you may choose to get a green license plate.    Green plates will allow you to use the High Occupancy Vehicle lane until June 30, 2015 even if you are driving alone.

 

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
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Telephone: (416) 398-1700
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Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

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