Zero-emission vehicles in Saskatchewan
A Saskatchewan corporation buying electric vans, trucks and fleet vehicles on or after September 15, 2026 can deduct 100% of the cost in the year the property is available for use. Combined tax rates in Saskatchewan: 10.0% on small business income and 27.0% at the general rate.
Does Saskatchewan follow the federal rule? Follows the federal rule Saskatchewan calculates corporate tax on the federal tax base, so the federal deduction would flow through if it is enacted. Details and sources
Zero-emission vehicles in Saskatchewan
Worked examples
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction (small business) | Tax reduction (general rate) | NPV benefit (general) |
|---|---|---|---|---|---|
| $25,000 | $3,750 | $25,000 | $2,500 | $6,750 | $1,010 |
| $100,000 | $15,000 | $100,000 | $10,000 | $27,000 | $4,039 |
| $250,000 | $37,500 | $250,000 | $25,000 | $67,500 | $10,099 |
Saskatchewan's small business limit is $600,000, higher than the federal $500,000, and its general rate is 12%. Class 54 passenger ZEVs are capped at a prescribed cost limit. Commercial ZEVs in Class 55 are not.
What sales tax does to your deductible cost in Saskatchewan
Saskatchewan charges GST 5% + PST 6%. The federal GST is recoverable through input tax credits and stays out of the capital cost, but the provincial tax generally is not. That non-recoverable tax becomes part of what the asset cost you, so it is deductible along with the asset.
| On a $100,000 purchase | Amount |
|---|---|
| Price before tax | $100,000 |
| Provincial tax at 6%, not recoverable | $6,000 |
| Capital cost you can deduct | $106,000 |
Saskatchewan PST is generally not recoverable, so it forms part of the capital cost and is deductible with the asset. Some farm and manufacturing equipment is exempt; check before assuming the tax applies. Enter the tax-inclusive figure in the calculator to see the full deduction, not the sticker price.
See also: all assets in Saskatchewan · Zero-emission vehicles in other provinces
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