Most electric vehicles have higher price tags than gas-powered vehicles. This fact is cited by many consumers as the main reason why they do not drive an EV. However, incentives for purchasing an EV are available in Canada. In this article, we’ll look at some of the incentive programs in Canada at the federal and provincial levels.
Federal EV Incentives
The rebate provided by the Canadian government is the Incentives for Zero-Emission Vehicles (iZEV) program. The iZEV has two levels of incentives:
- Battery electric, long-range plug-in hybrid, and hydrogen fuel cell vehicles are eligible for up to $5,000. *Long-range plug-in vehicles have an electric range greater than or equal to 50km.
- Shorter-range plug-in hybrid electric vehicles are eligible for up to $2,500. *Short-range plug-in vehicles have an electric range under 50 km.
To be eligible for the program, the vehicle must meet the following requirements:
- For Battery electric or plug-in hybrid cars, the MSRP must be less than $55,000. More expensive versions of the vehicle must not have an MSRP exceeding $65,000.
- Station wagons, pickup trucks, SUVs, vans/minivans, or special-purpose vehicles must have an MSRP of less than $60,000. Expensive versions of the vehicle must not have an MSRP over $70,000.
- Only new electric vehicles are eligible for the iZEV program. In other words, the vehicle has never been driven before. EVs that have been test-driven are considered new vehicles as long as the odometer reads less than 10,000 km.
You can find a list of eligible vehicles here, as well as the incentives for varying lease times.
Incentives from the iZEV program will be applied at the point of sale by the dealership, consumers do not have to apply to the program. The amount will appear directly on the bill of sale or lease agreement on eligible electric vehicles on, or after, the eligibility date. The dealer will submit the documentation required for reimbursement under the iZEV program. The federal incentive will also be applied on top of any provincial or territorial incentive offered.
The iZEV program is scheduled to last until March 31, 2025, or until available funds are exhausted.
The second rebate offered by the Canadian government is the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV). Some examples of medium and heavy-duty vehicles include coach buses, utility vans, and semi-trailer trucks. To be eligible for the iMHZEV program, a vehicle must:
- Be a zero-emission vehicle: battery electric, plug-in hybrid, or hydrogen fuel cell
- Have a gross weight rating greater than 8,500 lbs
- Meet all of Canada’s Motor Vehicle Safety Standards
- Be available for order/purchase/lease in Canada.
- Be intended for use on public streets, roads, highways, or other paved surfaces
- Where applicable, be registered in Canada in the eligible recipient’s name
- For Class 2B and Class 3 vehicles, be a medium duty or passenger vehicle (MDPV) with an MSRP equal to or below $100,000, or a commercial vehicle.
- To be considered a commercial vehicle, the vehicle must meet one or more of the following criteria:
- Have a seating capacity of 9 passengers or more
- Have a cargo area (e.g., pick-up truck bed) of at least 183 cm in interior length
- Be a truck with container attachment capabilities
- To be considered a commercial vehicle, the vehicle must meet one or more of the following criteria:
Certain vehicles may be excluded from the program, such as transit buses, school buses, RVs, or off-road vehicles.
You can find further info on eligible vehicles here, as well as incentives for various lease times.
There are several incentive amounts available under the program. They are as follows:
Source: Government of Canada
*Class 2B and Class 3 vehicles must meet the iMHZEV criteria for commercial vehicles to be available for the above incentives. If not, they will be considered medium-duty passenger vehicles and are eligible for the following incentives:
Source: Government of Canada
Just like the iZEV program, rebates under the iMHZEV program will be applied at the point of sale by the dealership or other authorized sellers. The amount will appear directly on the bill of sale or lease agreement.
EV Incentives by Province
British Columbia
The CleanBC Go Electric light-duty vehicle rebate program offers rebates on eligible EVs up to:
- $3,000 for the purchase or lease of a new battery-electric vehicle, hydrogen fuel cell vehicle, or longer-range plug-in hybrid electric vehicle
- $1,500 for the purchase or lease of a shorter-range plug-in hybrid electric vehicle.
This incentive is “stackable”, meaning you can combine the provincial and federal rebates together for a maximum of $8,000.
The CleanBC Go Electric Fleets Charging Program assists public and private organizations in transitioning their vehicle fleets to EVs. Under the program, the following rebates are available:
- Fleet Suitability Assessment: financial assistance at 50% of the cost to install telematics equipment to a maximum of $50,000. Assessments without telematics are eligible for up to $3,000 in rebates.
- Infrastructure and facility assessment: rebates for 50% of costs, up to a maximum of $5,000.
- Electrical work and service upgrades: rebates for 30% of costs up to $20,000 per site (max of four).
- Level 2 charging infrastructure: reimbursements for eligible equipment and installation costs to 75% or up to $5,000 per new charging station, to a maximum of $50,000 per applicant. *Note: these amounts are for a limited time only. Once the period is over, amounts will revert to 5-% up to $2,000.
- DC Fast Charge charging infrastructure: reimbursements for eligible equipment and installation costs, to a max of $20,000 per station up to 49kW, or up to $75,000 for stations 50kW or more. *Note: These amounts are for a limited time only. After the period is over, the amounts will be capped at 50% of costs up to $20,000 and 50% up to $50,000, respectively.
The SCRAP-IT program offers up to $6,000 for drivers who swap their gas-powered vehicles for an EV or other low-carbon vehicle. The incentive applies to the purchase of new and used EV.
Manitoba
The Manitoba Government has launched its Electric Vehicle Rebate Program, which provides rebates of $4,000 for the purchase of a new eligible electric vehicle, $1,000-$4,000 for leasing an eligible EV, and $2,500 for the purchase of pre-owned eligible EVs. The rebate amounts are also stackable with the federal iZEV program. The program is retroactive for drivers who purchased an EV between August 1, 2023 and July 1, 2024. Tesla models costing $70,000 or less and purchased outside of Manitoba from Aug.1, 2023, and May 2, 2024, also qualify. Residents can apply for the rebate on the Manitoba Public Insurance website.
Eligible vehicles must be purchased or leased from Manitoba dealerships with a maximum MSRP of $70,000 for new EVs or a maximum of $70,000 MSRP for used EVs. Only one rebate will be awarded per vehicle and per owner.
Ontario
Ontario offers incentives for used EVs via the non-profit organization Plug’n Drive. Under the program, drivers can receive:
- Up to $1000 is provided towards the purchase of a used fully electric car by the Used EV incentive program.
- Up to $1000 is offered towards the purchase of a used fully electric or plug-in hybrid electric car when you scrap your old gas-powered car via the Scrappage Incentive Program.
However, this is not an official incentive from the provincial government. Previously, Ontario drivers could receive up to $14,000 in EV rebates.
Québec
Québec currently has the highest-paying EV rebate program in Canada. The provincial government is offering individuals, businesses, organizations, and Québec municipalities a rebate of up to $7,000 on the purchase or lease of a new electric vehicle. The following table outlines the current rebate amounts:
Source: Government of Québec
On March 12, 2024, the Québec government announced the phase-out of rebates for electric vehicles and plug-in hybrids. The program will end completely in 2027. 32
New Brunswick
The government of New Brunswick has the following incentives available under the Plug-In NB program:
- New Battery Electric Vehicle (BEV): $5,000
- New long-range Plug-in Hybrid Electric Vehicle (PHEV): $5,000
- New PHEV: $2,500
- Used BEV: $2,500
- Used PHEV: $1,000
- Electric Vehicle Home Charging Stations: $750
The price cap for this program is the same as the federal iZEV program, with maximum MSRPs between $55,000 and $70,000 depending on the vehicle type and trim.
Nova Scotia
The Electrify Nova Scotia Rebate Program offers incentives of up to $3,000 for long-range BEVs and PHEVs. Shorter range PHEVs qualify up to $2,000. Used BEVs are eligible for $2,000, while all used PHEVs, regardless of range, are eligible for $1,000. Only EVs priced between $55,000 and $70,000 are eligible for this EV incentive program.
Prince Edward Island
The government of Prince Edward Island offers $5,000 to residents who purchase a new or used EV. The government also offers $2,500 to those who buy a plug-in hybrid. The price cap for eligible vehicles lies between $55,000 and $70,000. Additionally, residents who utilize the PEI incentive program (both BEV and PHEV) will receive a free Level 2 charger (installation costs are not covered). PEI dealerships will offer a point-of-sale rebate. EVs purchased outside of PEI are eligible for a rebate once the vehicle is registered in the province. However, the vehicle must have been purchased on or after January 1, 2023.
Newfoundland and Labrador
With the NL Hydro EV rebate program, drivers can receive incentives from $2,500 to purchase a new or used BEV, and $1,500 for a new or used PHEV, regardless of its range. Leased EVs still qualify, but the lease must be a minimum of 48 months. There is no price cap on eligible vehicles. Once you have purchased your EV, you can submit your application package, which must include:
- A completed and signed rebate application
- A copy of the final bill of sale or lease contract from the dealership, indicating the date of purchase
- A copy of the vehicle registration permit
The program will accept applications between April 1, 2023 and March 15, 2024. Rebates are available on a first-come, first-served basis or until funding is depleted.
Yukon
In the Yukon, drivers can receive a $5,000 rebate for new zero-emission vehicles. Additionally, the Yukon government offers $3,000 for any new plug-in hybrid vehicles with a battery capacity of less than 15 kilowatt hours. The rebate amount is applied automatically at the time of purchase.
EV Charging rebates
British Columbia
Under the CleanBC Go Electric program, residents can apply for various EV charging rebates.
The Home EV Charger Rebate offers a rebate of up to 50% of the purchase and installation costs of an eligible Level 2 charger, to a maximum of $350. This incentive applies to single-family homes, duplexes, and townhouses with a private garage or dedicated parking space.
Apartment and condo buildings looking to add charging stations can apply for the EV Ready rebates program. The standalone EV charger rebate offers up to $2,000 per charger to a maximum of $14,000 towards the purchases and installation of a Level 2 charger. Residents can also apply for rebates sequentially:
- A rebate of up to $3,000 to start the EV Ready plan – a program for a building to make at least one parking space per residential unit.
- A rebate of up to $600 per parking space, to a maximum of $80,00 to install the electrical infrastructure to support charging stations.
- A rebate of up to $1,400 per charger, to a maximum of $14,000, to purchase and install a Level 2 charger.
The Workplace EV Charging Rebate provides workplaces with $2,000 to purchase and install Level 2 charging stations for their employees. The maximum amount is $14,000.
The FortisBC Go Electric rebates offer:
- For a single detached home, a rebate of up to 50%, to a maximum of $350, of the purchase and installation costs of a Level 2 charger.
- For multi-unit residential buildings/workplaces built before August 31, 2020, a rebate of up to 50% of eligible purchase and installation costs, up to $2,000 per charging station, with a maximum of $14,000 per application.
Indigenous communities are eligible for a rebate of up to 75% of the purchase and installation costs of an EV charger. The following are the maximum amounts:
- Up to $750 for a single-family home
- Up to $4,500 per EV charger for apartment and condo buildings
- Up to $4,000 per EV charger for workplaces
Indigenous communities are also eligible for increased rebates for some Fleet Charging Programs offers:
Local Incentives
EV charging rebates are available at the regional level. The Regional District of Nanaimo, with help from the provincial government and BC Hydro, offers residents up to $500 toward the purchase and installation of a Level 2 charging station.
The district of Saanich offers multiple rebates for home charging. Residents living in a single family can receive up to $350. Those living in apartments or condos can receive up to $1,400 per charger. Lastly, workplaces can receive up to $2,000 per charger.
In Vicotria, residents can top-up the provincial Level 2 Ev charger rebate for apartments/condos with an additional $2,000. There is no separate application for this program. Simply apply for the provincial EV charging program, and if approved, the top-up will automatically be added.
Ontario
Ontario does not have an EV charging rebate program. However, residents of Toronto can use the city’s Home Energy Loan Program to cover the cost of purchasing and installing a charging station. The program provides a low-interest loan of up to $125,000 to cover the cost of home energy upgrades, and EV chargers are included in this.
Québec
The Home Charging Rebate offers drivers up to $600 toward the purchase and installation of an EV charging station. The Multi-Residential Charging Rebate can receive 50% of the costs, to a maximum of $5,000 for the purchase and installation of EV charging stations. The maximum amount an apartment or building can receive is $25,000. Businesses, municipalities, and organizations looking to install charging stations can receive the following amount:
- 50% of eligible expenses
- $5,000 per wireless charging station
- $5,000 per connector
For the rental and installation of a charging station, applicants can receive:
- $500 per wireless charging station
Or
- $500 per connector
And
- 50% of eligible expenses related to the installation
The maximum amount of financial assistance granted per eligible building and financial year (April 1 – March 31 the following year) is $49,000.
Local Incentives
There are charging rebates available in several Québec cities.
- The City of Berthierville: A subsidy by-law of $100 for the purchase and installation of a home charging station.
- Coaticook: Up to $250 to reimburse the cost of installing a charger by a licensed electrician.
- Dorval: 50% rebate, up to a maximum of $500 to cover the cost of buying and installing a Level 2 charging station.
- East Agnus: A grant of $100 for purchasing a Level 2 charging station.
- Granby: 25% of purchase and installation costs, up to a maximum of $250.
- Joliette: 25% of purchase and installation costs, up to a maximum of $250.
- L’Assomption: Residents can receive various rebates. For homeowners, a rebate of $150 is available for a single EV charging station. Condo owners are eligible for a rebate of $100 per charging station upon written confirmation from their syndicate of co-ownership. There is a limit of 2 EV chargers per property with six homes, resulting in a rebate of $300, and a limit of three EV chargers per property with seven homes or more for a rebate of $450.
- Lavaltrie: A rebate of $150 per residence for the installation of a Level 2 home charging station. Only one charging station per home can be subsidized and a maximum of five charging stations per multi-unit building.
- Magog: A rebate of $250 per EV home charging station.
- Marieville: A rebate covering 25% of purchase and installation costs with a maximum amount of $250 per charging station.
- Mont-Joli: For home or condo owners, a rebate covers 50% of costs, up to $200.
- Sherbrooke: A rebate of up to $300 to cover the cost of installing an EV charging station by a licensed electrician.
- Thetford Mines: Residents can receive a maximum of $250 in rebates for buying and installing an EV charger. The program operates on a first-come, first-served basis.
- Vaudreuil-Dorion: A rebate of $150 for charging stations purchased after January 1, 2022.
- Waterloo: A $100 rebate for residents looking to buy an EV charging station. Applicants must present an invoice until the program’s budget ($2,000) is depleted.
Nova Scotia
In Nova Scotia, the EV Boost program helps organizations implement Level 2 chargers. The program aims to deploy and install 250 chargers throughout the province. Eligible locations for charging stations include:
- Workplaces
- Multi-unit residential buildings (MURBs)
- Public places
- On-street parking spots
New Brunswick
The Home Charging Station Rebate offers to cover 50% of the cost (to a maximum of $750) to purchase and install a home charging station.
Yukon
The Good Energy rebate offered by the Government of Yukon is available for the following properties:
- Single detached homes, duplexes, triplexes, and mobile homes:
- 50% of the purchase and installation costs up to a maximum of $750 for a single Level 2 charging station
- Multi-unit residential buildings, commercial buildings, or institutional buildings. Includes municipal and First Nations government-owned buildings:
- 75% of the purchase and installation costs up to a maximum of $7,5000 per installed Level 2 charger
- For municipal and First Nations government buildings:
- 90% of the purchase and installation costs up to a maximum of $9,000 per station.
Alberta, Saskatchewan, Manitoba, Nunavut and the Northwest Territories
Currently, there are no dedicated EV incentive programs in these provinces and territories. However, there are other programs available in each jurisdiction that can be used toward EVs.
In Alberta, the Municipal Climate Change Action Centre (MCCAC) helps communities lower their energy costs and reduce greenhouse gas emissions. While the incentive is not specifically for EVs, it provides up to $300,000 in funding for municipalities to purchase EVs, install charging stations, and conduct feasibility studies. The Electric Vehicle Charging Program provides funds for municipalities to install chargers in public spaces, on-street locations, properties, and municipal vehicle fleets. The program offers up to $10,000 for each Level 2 charger and up to $150,000 for each Level 3 fast charger (DCFC).
The Home Energy Efficiency Loan offered by Manitoba Hydro helps residents make energy-efficient upgrades to their homes. Under the program, Manitobans can receive financing up to $3,000 per EV charger, including installation. Furthermore, the provincial government plans to offer rebates of $4,000 on new EVs and $2,500 on used EVs.
