Save Taxes on Transportation
Did you know?
By taking advantage of all of provincial tax rebate programs and the BC Scrap-It Program, you could save money on fuel efficient transportation options.
Please note: The federal ecoAUTO Rebate Program ended on December 31, 2008. To qualify to receive the $2,000 tax rebate from the federal government, eligible vehicles MUST have been purchased prior to December 31, 2008 and all applications must be received by March 31, 2009. Also, while 2009 vehicles are eligible for provincial rebates, they are not included in the federal ecoAUTO rebate.
Provincial exemptions that apply to automobiles are applied right at the point of sale. All you need to do is decide which carbon-smart choice is right for you:
- PST reduction for certain conventional fuel efficient vehicles that meet the fuel efficiency criteria set out in the federal government’s ecoAuto rebate program. The tax reduction is $1,000, $1,500, or $2,000, and is based on fuel efficiency and vehicle type.
- PST reduction for hybrid electric vehicles of 100% of the tax payable up to a maximum of $2,000.
- PST exemption for non-motorized two wheel bicycles.
- PST reduction for hydrogen fuel cell buses of 50% of the tax payable up to a maximum of $10,000.
- PST reduction for 50% of the tax payable to a maximum of $5,000 for alternative fuel shuttle buses and $10,000 for alternative fuel passenger buses.
- PST exemption for biodiesel fuel, including the portion of biodiesel fuel used in a furnace oil blend, when used for heating or other non- motive uses.
- Biodiesel and ethanol classified as alternative motor fuels for all purposes and are exempt from tax.
- PST reduction for electric motorcycles.
- PST exemption for kits to convert vehicles to operate on natural gas or propane or to operate exclusively on electricity.
- Motor Fuel Tax exemptions for natural gas and alcohol-based fuels (blends of gasoline or diesel fuel and at least 85% ethanol or methanol) when purchased to propel a motor vehicle.
- Motor Fuel Tax exemptions for the ethanol portion, including denaturant, of an ethanol/gasoline or ethanol/diesel blend if the ethanol portion is not less than 5% or more than 25% of the volume of the blend.
- Motor Fuel Tax exemptions for biodiesel, including the biodiesel portion of any blend of biodiesel fuel and diesel fuel and pure biodiesel.
- Motor Fuel Tax preferential tax rate (2.7¢/litre) for propane purchased for use in operating a motor vehicle or stationary engine.
- PST exemption for certain aerodynamic devices purchased for use on commercial motor vehicles.
- Exemption from passenger vehicle rental tax for rentals of eight hours or less.
New Tax Incentives in Balanced Budget 2008 let you choose how you want to save.
Green Transport:
- Exemption from passenger vehicle rental tax for rentals of eight hours or less.
- PST exemption for electric power-assisted two and three wheel cycles* and non-motorized adult-sized tricycles.
- PST reduction for electric motorcycles of 50% of the tax payable to a maximum of $1,000.*
- PST exemption for certain aerodynamic devices purchased for use on commercial motor vehicles.
Fuel Savings:
- PST reduction for certain conventional fuel efficient vehicles that meet the fuel efficiency criteria set out in the federal government's ecoAuto rebate program. The tax reduction is $1,000, $1,500, or $2,000, and is based on fuel efficiency and vehicle type.*
- PST reduction for hydrogen fuel cell buses of 50% of the tax payable to a maximum of $10,000.*
- PST exemption for biodiesel fuel, including the portion of biodiesel fuel used in a furnace oil blend, when used for heating or other non- motive uses.
- PST applied to coal and coke, except when purchased for use in a residential dwelling unit.
- Biodiesel and ethanol classified as alternative motor fuels for all purposes and are exempt from tax.
* Measures have a sunset date of March 31, 2011.
Existing Tax Incentives Supporting Climate Action:
Green Transport:
- PST reduction for: hybrid electric vehicles of 100% of the tax payable to a maximum of $2,000;
- PST reduction for eligible alternative fuel vehicles (e.g. operate on ethanol, natural gas or propane) of 50% of the tax payable to a maximum of $1,000.
- PST reduction for 50% of the tax payable to a maximum of $5,000 for alternative fuel shuttle buses and $10,000 for alternative fuel passenger buses.
- PST exemption for purchase of and charges to install kits to convert motor vehicles to operate on natural gas or propane, or to operate exclusively on electricity.
- PST refund on parts and labour to convert shuttle buses and passenger buses to operate as hybrid electric vehicles or to operate on HCNG (a blend of hydrogen and compressed natural gas).
- PST exemption for non-motorized two wheel bicycles.
Fuel Savings:
- Motor Fuel Tax exemptions for natural gas and alcohol-based fuels (blends of gasoline or diesel fuel and at least 85% ethanol or methanol) when purchased to propel a motor vehicle.
- Motor Fuel Tax exemptions for the ethanol portion, including denaturant, of an ethanol/gasoline or ethanol/diesel blend if the ethanol portion is not less than 5% or more than 25% of the volume of the blend.
- Motor Fuel Tax exemptions for biodiesel, .4including the biodiesel portion of any blend of biodiesel fuel and diesel fuel and pure biodiesel
- Motor Fuel Tax preferential tax rate (2.7¢/litre) for propane purchased for use in operating a motor vehicle or stationary engine.
