Canada tax write-off for mining EVs welcomed by MAC
The Mining Association of Canada (MAC) declared support for the government’s commitment to write-off the full cost of clean energy equipment.
The Canadian government will extend the business tax deduction for zero-emission vehicles and equipment to cover mining operations, Prime Minister Justin Trudeau announced Monday, as he believes the sector has an important role to play in the fight against climate change.
First introduced in 2018, the government’s Fall Economic Statement specified that clean energy equipment be eligible for immediate expensing.
With this change, the cost of specified clean energy equipment became eligible for a full tax write-off the year it is put in use in the business, but the measure did not include most electric mine vehicles when first announced.
“This announcement is welcome news for Canada’s mining sector and responds to one of MAC’s specific budget requests,” said Pierre Gratton, MAC’s President and CEO.
“Last year, Canada opened its first all-electric mine, and the deployment of electric vehicles across Canada is accelerating. Nonetheless, such equipment has a significant cost premium, so the announcement will help de-risk such purchases and accelerate the adoption of electric vehicles at more mines.”
Electric vehicles reduce ventilation requirements, reduce mine waste through smaller drifts, improve air quality for workers and eliminate GHG emissions that contribute to climate change.
“Just as miners know their materials are essential to the transition to a low-carbon economy, we also know we must reduce our own operational footprint,” said Brendan Marshall, vice president of economic and northern affairs for MAC.
“This announcement underscores the government recognizes this and is committed to a sustainable extractive sector as a key component of Canada’s economy.”