OTTAWA — The Canadian government is promising a new electric-vehicle supply chain investment tax credit in a bid to land more investments in a burgeoning sector.
Finance Minister Chrystia Freeland’s 2024 federal budget includes plans to introduce a 10 percent tax credit on the cost of buildings used in “key segments” of the electric vehicle supply chain.
After scoring big wins and so-called anchor deals with Volkswagen, Stellantis and LG Energy Solution, the move is designed to incentivize more companies to build in Canada to grow the country’s EV supply chain.
The new measure is the sixth clean economy investment tax credit on offer from the federal government. It is not a direct response meant to compete with a similar incentive offered in the United States, a senior government official told POLITICO.
