Toyota Tacoma, Lexus and other Toyota and Lexis vehicles will get $1,000 in tax incentives, the first of its kind in Canada, as part of a pilot project to help fuel Canadian manufacturing.
The tax credits are available to new and existing vehicle owners in Ontario, Alberta and British Columbia.
They are available for any new and used vehicles manufactured in the three regions between May 1, 2020 and July 31, 2020.
The province and the federal government also announced a $2.1-million cash grant for the Toyota and Toyota Camry to help support the development of new vehicles in the industry.
“We are pleased to be the first in Canada to offer tax credits to a major Canadian manufacturer, but it’s not enough to make our businesses successful,” said Mark Williams, president and CEO of the Toyota Motor Corporation.
“Toyota is one of the world’s largest car companies and a leader in vehicle technology.
By making the Toyota Tacoma the first to receive tax credits, we’re providing support to our Canadian workers and expanding our global manufacturing footprint.”
The tax credit is part of an effort by the Canadian government to support the automotive industry.
It will help fund a variety of incentives for companies that invest in Canada and create new jobs, including those in Canada.
“Canada has been a leader internationally in creating high-tech manufacturing jobs and supporting Canadian companies,” said Transportation Minister Lisa Raitt.
“This pilot project will help us continue to expand our automotive innovation capacity, supporting our Canadian partners and strengthening the automotive manufacturing sector.”
Toyota Tacoma owner Mike Bickmore says the tax credit will allow him to buy a Toyota Camro instead of a Lexus.
“It’s going to be a nice little tax savings for me,” he said.
“I can get my Camry and Lexion and I’ll still have to buy another Toyota.”
Toyota says it has received more than 2,000 applications from Canadian companies seeking tax credits.
The incentives are available through the Canada Business and Investment Council, which helps support Canadian businesses.
Toyota said it expects the tax credits will cost the company between $50,000 and $100,000.
“The Toyota Tacoma is a great vehicle and the price is great, but we have a very competitive marketplace,” Williams said.
The program will start in 2019, with the first vehicle eligible for the tax incentives scheduled to arrive in 2020.
It is not the first time the tax benefits have been offered to companies.
In 2016, Toyota paid $400,000 to a company in Saskatchewan who made its first Camry vehicle.
Toyota also announced last week it will offer up to $5,000 tax credits for each new vehicle it makes in 2019.
The government will also help cover the costs of a provincial tax credit program that was established by the provincial government in 2014 to help small businesses in the automotive sector.