Tax Credit for the Acquisition or Lease of a New Energy-Efficient Vehicle

A qualifying person that acquires or leases on a long-term basis (for a period of at least 12 continuous months) a recognized energy-efficient vehicle can claim a refundable tax credit, provided the vehicle is purchased or leased after December 31, 2008, and before January 1, 2012.

Who can claim the credit?

This tax credit can be claimed by:

• an individual (other than a trust) who was resident in Québec at the end of December 31 of the year or who, if the individual died in the year or ceased to reside in Canada, was resident in Québec immediately before his or her death or immediately before the moment he or she ceased to be resident in Canada
• a corporation that has an establishment in Québec and that is not a corporation exempt from income tax for the year, a Crown corporation, or a subsidiary wholly-owned corporation of such a corporation

Recognized energy-efficient vehicle

A vehicle will be recognized as an energy-efficient vehicle if it is a vehicle with four wheels (other than an off-highway vehicle) and if it satisfies all of the following conditions:

• the vehicle is one of the following:
  • a vehicle powered entirely or partly by gasoline or diesel or, if it is a hybrid vehicle, partly by one of these fuels and partly by electricity, and the weighted fuel consumption rating is no more than 5.27 litres per 100 kilometres for a vehicle using gasoline and no more than 4.54 litres per 100 kilometres for a vehicle using diesel
  • a vehicle powered by a source of energy other than fuel
  • a plug-in extended-range hybrid vehicle that has a battery capacity of 16 or more kilowatt hours (kWh) and was acquired or leased after March 17, 2011
• the vehicle is registered or deemed registered (This link will open a new window) for the first time in Québec and was never registered outside Québec, unless it was registered outside Québec with a temporary in-transit registration so that the vehicle could be brought into Québec immediately after possession of the vehicle was transferred
• if the vehicle is acquired or leased on a long-term basis by a qualifying person, it is registered in the name of that person, who may be the owner, co-owner or long-term lessee of the vehicle
• if the vehicle is acquired or leased on a long-term basis by a partnership, it is registered in the name of one of the partners

Amount of the tax credit that can be granted

Long-term lease

If the recognized energy-efficient vehicle is leased, the amount of the tax credit that appears in the above table must be multiplied by a rate of 25% to 85%, depending on the duration of the lease.

Member of a partnership

The percentage interest in the partnership determines the amount of the tax credit to which a member of the partnership is entitled with respect to a vehicle aquired or leased on a long-term basis by the partnership.

How to claim for the credit

To claim this tax credit, complete form TP-1029.8.36.EC-V, Tax Credit for the Acquisition or Lease of a New Energy-Efficient Vehicle, and enclose it with your tax return. 

Notes

• Do not enclose any supporting documents, but keep them in case we ask for them.
• The credit must be claimed for the year in which the qualifying person acquired or leased the vehicle. If the vehicle was acquired or leased by a partnership of which the person is a member, the credit must be claimed for the taxation year that includes the end of the fiscal period in which the partnership acquired or leased the vehicle. In order to claim the credit, the qualifying person must have been a member of the partnership at the end of the aforementioned fiscal period.