Introduction of a refundable tax credit for the acquisition or lease of a new fuel-efficient vehicle
An eligible person who, after December 31, 2008, and before January 1, 2016, acquires or leases on a long-term basis a recognized fuel-efficient vehicle may benefit from a refundable tax credit for the taxation year that includes such time.
This tax credit will be adjusted depending on the vehicle’s environmental performance and the time when new generations of fuel-efficient vehicles appear on the Québec market. For example, this credit will, depending on the year, be $2,000 for the acquisition of a vehicle with a gasoline consumption rating of 3 to 5.27 litres per 100 kilometres and $8,000 for a vehicle that uses no fuel.
The term “eligible person” for a given taxation year means:
- either an individual, other than a trust, including an individual exempt from tax for the year, who resides in Québec at the end of the day on December 31 of the year;
- or a corporation that has an establishment in Québec and that is not a corporation exempt from tax for the year, a Crown corporation or a subsidiary wholly-owned corporation of such corporation.
A vehicle will be recognized as a fuel-efficient vehicle for the purposes of the tax credit if it is a vehicle with four wheels, other than an off-highway vehicle, and if the following conditions are satisfied:
- the vehicle is
- either a vehicle powered totally or partially by gasoline or diesel or, if it is a hybrid vehicle, partially by one of these fuels and by electricity,
- or a vehicle using no fuel as a source of energy, including a low-speed vehicle;
- where the vehicle is powered in whole or in part by gasoline or diesel or, in the case of a hybrid vehicle, in part by one of these fuels and by electricity, the vehicle’s weighted fuel consumption rating is less than or equal to 5.27 litres per 100 kilometres for a vehicle using gasoline as a fuel and 4.54 litres per 100 kilometres for one using diesel;
- the vehicle is registered or deemed registered for the first time in Québec and was never registered outside Québec, unless the vehicle’s registration outside Québec was temporary, commonly known as “transit,” to enable the vehicle to be brought to Québec immediately after taking possession of it;
- the vehicle was not acquired for the purposes of resale or long-term leasing;
- if the vehicle is acquired or leased on a long-term basis by an eligible person, it is registered in the name of the latter as being 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 a partner.
The weighted fuel consumption rating of a vehicle will be established using the Fuel Consumption Guide published by Natural Resources Canada and the following calculation:
- multiply the vehicle’s city fuel consumption rating by 55%;
- multiply its highway fuel consumption rating by 45%;
- add the two results.
For further information, see page A.69 in Additional Information on the Budgetary Measures, published by the Ministère des Finances.