Electric Vehicle Rebates for Canadians: How to Save Money When Buying A EV in Canada
With climate change and increasing gasoline prices dominating the news, an increasing number of Canadian drivers are considering electric vehicle. The Good news is, the federal government as well as provincial governments, have stepped in with EV rebates and incentives. The Canadian government is trying to shift all vehicles to become electric vehicles by the year 2040, and to do so they offer EV incentives to make the switch from traditional gas-powered vehicles towards electric vehicles. Electric vehicle rebates are very helpful in lightening the financial burden from buying EVs. In this article, we will go over the electric vehicle rebates offered in Canada. We’ll walk you through electric vehicle rebates on what you need to know about and which vehicles are qualified.
Federal EV incentives
The Incentives for Zero-Emission Vehicles, or IZEV, initiative was launched by Transport Canada. This program, also known as ZEV, offers a federal rebate on electric vehicle point-of-sale purchases, including electric vehicles bought online or in person.
Two different electric vehicle incentive programs are offered by the ZEV program: $2,500 off the short-range plug-in hybrid electric vehicle’s MSRP (manufacturer suggested retail price) or lease fees or $5,000 off long-range plug-in hybrid electric vehicles (PHEVs), battery-electric vehicles (BEVs), and hydrogen fuel cell vehicles’ MSRPs or leasing costs.
Furthermore, other conditions for electric vehicle rebates eligibility are determined by the vehicle’s cost and passenger capacity: A vehicle must cost $45,000 or less for base trims or $55,000 for higher-level trims if it has six seats or fewer or the price of the vehicle must be $55,000 or less for base trims or $60,000 or less for higher-level trims if it has seven seats or more.
Lastly, the federal government also offers a supplementary electric vehicle incentive for vehicles purchased through a business or a corporation: vehicle purchases made between March 19, 2019, and January 1, 2024, are 100% tax deductible up to $55,000. This also includes vehicles that were leased as well as those that were purchased were eligible for incentives. However, the federal incentive program only covers brand-new EVs, used electric vehicles are not eligible. Individuals are only eligible to participate in this program for the purchase of one EV; however, organizations and governments are eligible to get EV incentives up to ten times for fleets of vehicles.
Ontario EV Rebates
If you live in Ontario and would like to benefit from electric vehicle rebates and incentives, you might have to wait until the government restarts the program. Premier Doug Ford revoked a $14,000 provincial discount on the purchase of electric vehicles in June 2018 on the grounds that it solely benefited the wealthy. Many other provinces adopted this decision. It’s important to note that Ontario offers one non-monetary incentive, which is access to carpool lanes even if there is only one person in the vehicle. However, a non-profit organization called Plug ‘N Drive is providing a rebate of up to $2,000 for used fully electric vehicle purchases when combined with a scrappage incentive.
Quebec EV Rebates
Although Quebec’s new electric vehicle rebate program is a little less generous than BC’s “SCRAP IT” program, it still exists. When purchasing or leasing a new PHEV or BEV, you can receive up to $8,000 EV rebates, but you must keep the total cost of the EV under $60,000, as opposed to BC where the cap is $55,000. 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 2022:
$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 EV Rebates
To complement the federal iZEV program, New Brunswick recently unveiled an electric vehicle rebate program. Like the federal program, you can receive up to $5,000 for new models and $2,500 for used electric vehicles. 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 EV Rebates
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. 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 EV Rebates
Starting in April 2021, P.E.I. implemented the most substantial provincial EV rebate program in Canada. On a new or used electric vehicle purchase, you can receive up to $5,000, whereas hybrids are only eligible for $2,500. Combining it with the federal EV incentives for a new model gets you up to $10,000. The province will also include a free Level 2 charger on top of the refund, but installation fees are your own responsibility.
Newfoundland & Labrador EV Rebates
Newfoundland now offers an NL Hydro EV Rebate Program of $2,500 for new or used all-electric vehicles and $1,500 for hybrids, 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 EV Rebates
The Yukon government is giving buyers of new zero-emission vehicles a $5,000 refund to get more EVs on the road (and reduce air pollution). 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.
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