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 only 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.
EV Incentives Available by Province
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.
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 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 $8,000 on the purchase or lease of a new electric vehicle. The following table outlines the current rebate amounts:
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.
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 for the purchase of 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.
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.
Alberta, Saskatchewan, Manitoba, Nunavut and the Northwest Territories
Currently, there are no EV incentive programs in these provinces and territories. Residents instead can turn to the federal iZEV program to receive rebates.