Ontario applauds US bill proposing EV tax credit, but won’t offer incentives of its own

Fedelli said the threat of the tax credit being limited to the US did not get in the way of recent deals related to electric or hybrid car manufacturing, but halted some meetings with international auto parts makers that began before the pandemic in recent years. Went. ,

However, when asked whether the province would consider rolling back a buyer’s exemption for Ontario wanting to buy an electric car, Fedley reiterated the government’s go-to line: Right now the focus is on production and jobs for auto workers.

“That’s where we’ve decided to put our money on the supply side, while supporting the workers,” he said.

Premier Doug Ford’s recently re-elected Tory government ended electric vehicle exemptions funded by the province’s cap-and-trade system in 2018 soon after it first came to power, and has not brought them back.

pay attention to the output

Fedelli said that now the focus is on increasing production.

“The discounts that were there before, if you bought an electric vehicle in Canada and you were looking for a discount, it’s on a foreign-made car,” he said.

“We want to make cars here, so to make cars here, we need to encourage the industry and that’s where we decided to invest our money.”

Fedeli would not say whether there was a point where the government would consider rolling back the exemption once a significant Canadian supply of EVs became available.

Joanna Kyriazis, a senior policy advisor at the think tank Clean Energy Canada, argued that now is a good time to introduce discounts to Ontario buyers.

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“Premier Ford’s EV vision is really missing half the equation,” she said in an interview. He said the Ford government has done “a commendable job” in supporting manufacturing, but has fallen behind when it comes to helping residents buy cars.

“Right now, we have both an affordability crisis and a climate crisis in the province, and if the Ford government can do more to help the people of Ontario get their hands on money-saving electric vehicles, that would be for both. will provide a solution.”

The industry would also benefit from buyer incentives for Ontarians, as it would encourage more people to drive electric vehicles, which “sends the right signal” to automakers, he said. She also noted that Ontario will lag behind much of the continent on EV buyer incentives once the US bill becomes law.

Kyriazis said it is also a good time to introduce incentives as consumers are frustrated with the price of gas and may be willing to switch if the upfront cost of an electric vehicle becomes more affordable.

Bill Saved Canadian Auto

Flavio Volpe, president of the Automotive Parts Manufacturers Association, said the surprise change to the US bill effectively saved the industry in Ontario, as most cars manufactured in Canada are sold in the US and automakers are shifting their operations toward electric vehicles. .

He said his group does not oppose buyer incentives for Ontarians, but added that they are not critical to keeping the industry running because the US buyer’s market is far larger and more necessary.

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“We would support one, but … it has no impact on auto manufacturing in Canada,” he said. “Auto Manufacturing in Canada is Ready for the American Consumer.”

Daniel Breton, president of Electric Mobility Canada, which promotes electric transportation, said the government’s decision to scrap buyer incentives was a mistake.

He warned that as other jurisdictions introduce incentives and mandates, Ontario residents could be barred from purchasing locally sourced supplies.

“It is very important that we have exemptions in Ontario,” he said.