A Guide to Electric Vehicle Rebate in Canada

Electric Vehicle Rebate in Canada

Are you thinking about making the switch to electric vehicle? With climate change and rising gas prices dominating the news, an increasing number of Canadian drivers are considering purchasing an electric vehicle. The good news is that both the federal and provincial governments have stepped in with EV rebates and incentives. 

The Canadian government plans on shifting all vehicles to electric vehicles by 2040, and to do so, they are offering EV incentives to encourage people to move from traditional gas-powered vehicles to electric vehicles.  Today, electric vehicle rebates can significantly reduce the financial burden of purchasing EVs and also making EVs more affordabl in Canada. 

When people buy or lease electric vehicles, the electric vehicle rebates will be determined by a number of factors, including the vehicle’s eligibility and province. This article will go over the electric vehicle rebates that are currently available in Canada. We’ll go over everything you need to know about electric vehicle rebates in Canada and which vehicles are eligible.

How to Get Electric Vehicle Rebate in Canada?

At the dealership, the dealer is responsible for submitting the necessary papers for granting rebates to customers at the moment of sale. Aside from the federal rebate, the provincial rebate will also be applied. That means the dealership will apply the incentive at the point of sale and it will show on the bill of sale or lease agreement. Furthermore, the bill of sale will include the amount of the rebate obtained on the purchased vehicle. Before applying the rebate, the dealer who sells the electric vehicle must add the required taxes and fees to the purchase/lease.

Eligible Vehicles for Electric Vehicle Rebate Canada

The Incentives for Zero-Emission Vehicles, or IZEV, initiative was launched by Transport Canada. This program, also known as ZEV, provides a federal rebate on electric vehicle point-of-sale purchases, which include both online and in-person purchases.

A zero-emission vehicle (ZEV) is capable of minimal tailpipe emissions. While it may still have a traditional internal combustion engine (ICE), it must be capable of operating without it. There are three types of ZEVs on the market:

Battery electric vehicle (BEV)

A fully electric car is powered by an electric motor and charged by plugging it into an external power socket.

Hydrogen fuel cell (FCEV)

A fully electric vehicle that runs on hydrogen gas and is powered by a hydrogen fuel cell rather than a battery.

Plug-in hybrid electric (PHEV)

Plug-in hybrid uses both an electric motor and an internal combustion engine (ICE). The electric motor is powered by a battery that is charged by plugging it into an electrical socket. The ICE is powered by a fuel, such as gasoline.

The ZEV program offers two different electric vehicle incentive programs: $2,500 off the short-range plug-in hybrid electric vehicle’s MSRP (manufacturer suggested retail price) or lease fees or $5,000 off the MSRPs or leasing costs of long-range plug-in hybrid electric vehicles (PHEVs), battery-electric vehicles (BEVs), and hydrogen fuel cell vehicles. Furthermore, the cost and passenger capacity of the vehicle determine eligibility for electric vehicle rebates: A vehicle must cost $45,000 or less for base trims or $55,000 or less for higher-level trims if it has six or fewer seats, or $65,000 or less for base trims or $70,000 or less for higher-level trims if it has seven or more seats.

Lastly, the federal government provides an additional electric vehicle incentive for vehicles purchased through a business or corporation: vehicle purchases made between March 19, 2019, and March 31, 2025, are fully tax deductible up to $55,000. Vehicles that were rented as well as those that were purchased were both eligible for incentives. However, the federal incentive program only applies to new electric vehicles; used electric vehicles are not eligible. Individuals can only participate in this program once for the purchase of a single EV; however, corporations and governments can earn EV subsidies up to 10 times for fleets of vehicles.

EV buyers should first determine whether their chosen car is eligible before acquiring a zero-emission vehicle. To check the complete list of eligible automobiles, see the full list of eligible EVs on the Canadian government website.

Provincial Electric Vehicle Rebate in Canada

Ontario 

If you live in Ontario and want to take advantage of electric vehicle rebates and incentives, you may have to wait until the program is restarted by the government. In June 2018, Premier Doug Ford rescinded a $14,000 provincial tax credit for the purchase of electric vehicles, claiming that it benefited only the rich. Many more provinces followed likewise. 

It’s worth noting that Ontario provides one non-monetary incentive: access to carpool lanes even if just one person is in the vehicle. However, Plug ‘N Drive, a non-profit group, is offering a $2,000 rebate for used fully electric vehicle purchases when combined with a scrappage incentive.

British Columbia

In BC, a provincial electric vehicle rebate of up to $4,000 is available for new BEVs, FCEVs, and PHEVs with an electric range of more than 85 km, and a rebate of up to $2,000 is available for PHEVs with less than that range.

However, the amount you receive is determined by your income. To qualify for the maximum amount, you must earn less than $80,000 per year. If you earn between $80,001 and $90,000 per year, you will receive half of the electric vehicle rebate. If you earn more than $100,000, you will not be eligible for the reimbursement. For used EVs, there are no electric vehicle rebate available in BC.

Quebec

When purchasing or leasing a new PHEV or BEV, you can receive up to $7,000  electric vehicle rebate in QC, but you must keep the total cost of the EV under $65,000. If you combine this with the federal program, your purchase price could be reduced by up to $13,000. However, the rebate program in Quebec has been change in July 2022. The max rebate for all-electric vehicles now has been drop to $7,000, while plug-ins will get a max rebate of $5,000, which is also down from $8,000 previously.  

The following list will indicate electric vehicle rebates available in the province of Quebec that are still available as of November 2023:

$7,000 for a new electric vehicle

$7,000 in rebates for automobiles fueled by hydrogen

$5,000 on used electric vehicle

$5,000 off charging stations for the workplace

$5,000 in rebates on charging stations for multi-unit buildings

$600 for a home charging station

$2,000 for electric motorcycles

$500 in electric scooter rebates

New Brunswick

To complement the federal iZEV program, New Brunswick recently unveiled an electric vehicle rebate program. A new BEV or PHEV with more than 50 kilometres of electric-only range is eligible for a $5,000 electric vehicle rebate New PHEVs with less range and old BEVs receive a $2,500 EV rebate, while used PHEVs are eligible for a $1,000 incentives. 

The offer is “stackable,” which means you can combine provincial and federal rebates for a maximum savings of $10,000. By 2030, the province expects 20,000 EVs to be in use.

Nova Scotia

The Electrify Nova Scotia Rebate Program, which Nova Scotia launched in February 2021, offers a point-of-purchase rebate of up to $3,000 on new electric automobiles and $2,000 on used electric vehicles. For used BEVs and PHEVs, the electric vehicle rebate ranges from $2,000 to $1,000. 

Depending on seating capacity and trim, the car must be a BEV or PHEV and have an MSRP of around $60,000. When combined with the federal program, you could receive up to $8,000 in reimbursement for buying a new EV.

Prince Edward Island

Starting in April 2021, P.E.I. implemented the most substantial provincial EV rebate program in Canada for BEVs and PHEVs, both new and used. BEVs is $5,750 while $3,250 for PHEVs. The first $750 is for the purchase and installation of a Level 2 charger or to cover charging fees for people who are unable to install a charger at home.

Combining the provincial EV rebate with the federal EV incentives for a new model gets you up to $10,000. While the province will also include a free Level 2 charger on top of the refund, the installation fees are your own responsibility.

Newfoundland & Labrador

Newfoundland now offers an NL Hydro EV Rebate Program of $2,500 for new or used all-electric vehicles and $1,500 for new and used PHEVs, joining the ranks of the Maritime provinces that offer EV subsidies. You might receive up to $7,500 to drive an EV around Newfoundland and Labrador if you combine that refund with the federal campaign.

Yukon

The Yukon government is giving EV buyers of new zero-emission vehicles a $5,000 electric vehicle rebate to get more EVs on the road and reduce air pollution. It’s $3,000 for PHEVs with an electric range of less than 50 kilometres or more.

A Level 2 home charger incentive and a $1,500 freight rebate are also available for used zero-emission automobiles. You may be able to get up to $10,000 back on a new EV purchase when combined with the iZEV rebate.

The electric vehicle rebate in Canada will continue to benefit Canadians who buy or lease electric vehicles until March 31, 2025, or until the funding amount runs out, whichever comes first. Individuals can also contact Transport Canada if they have any questions or concerns about electric vehicle rebate. For more information about the federal and provincial electric vehicle rebates available, visiting the Canadian Government’s authorized web pages.

More from Carnex Blog:

Best Electric Vehicles of 2023 and 2024 in Canada

Future EVs: 11 New EVs and Hybrids Coming in 2024

Will Buying an Electric Vehicle Save You Money?

As always, Carnex can provide you with detailed information about buying and selling EV in Canada.

Carnex is the top online EV expert in Canada for buying and selling used EV in Canada.

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