30 December 2021
Canada's Department of Finance issued a release on 23 December 2021 announcing the 2022 automobile deduction limits and expense benefit rates for businesses.
Government announces the 2022 automobile deduction limits and expense benefit rates for businesses
December 23, 2021 - Ottawa, Ontario - Department of Finance Canada
Today, the Department of Finance Canada announced the automobile income tax deduction limits and expense benefit rates that will apply in 2022.
The following changes to limits and rates will be taking effect as of January 1, 2022:
These changes reflect recent increases in the Consumer Price Index (CPI). The maximum allowable interest deduction for new automobile loans will remain at $300 per month for 2022 as it continues to be appropriate to prevailing interest rates.
Eligible zero-emission passenger vehicles include plug-in hybrids with a battery capacity of at least 7 kWh and vehicles that are fully electric or fully powered by hydrogen.
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