7 October 2016 APFF Roundtable Q. 5, 2016-0652861C6 F - Véhicules électriques - rabais -- summary under A

The Quebec government subsidizes electric vehicle purchases through the payment of a rebate directly to a participating car dealer., this assistance is actually a deposit paid or to be paid to the dealer on the purchase or lease. What is the incidence of the subsidy on CCA where the pre-tax cost of the vehicle is $25,000, $35,000 or $45,000? After noting that such assistance did not reduce the cost of the vehicle for purposes of s. 6(2), CRA went on to find that it reduced the capital cost of the vehicle to the purchaser for CCA purposes under s. 13(7)(g), stating that "the capital cost of the electric vehicle will be the same whether the amount of assistance is paid directly to the participant or the participant authorizes the government to pay the amount of the assistance to a partner dealer."