Section 67.2 — Income Tax Act: Interest on money borrowed for certain vehicles

For the purposes of this Act, if an amount is paid or payable for a period by a person in respect of interest on borrowed money used to acquire a passenger vehicle or zero-emission passenger vehicle, or on an amount paid or payable for the acquisition of such a vehicle, then in computing the person’s income for a taxation year the amount of interest so paid or payable is deemed to be the lesser of the actual amount paid or payable and the amount determined by the formula A/30 × B where A is $250 or such other amount as may be prescribed; and B is the number of days in the period in respect of which the interest was paid or payable, as the case may be.