EV rebates in Canada: Which provinces have the best EV incentives?

EV rebates in Canada: Which provinces have the best EV incentives?

The popularity of electric vehicles has grown significantly in recent years, thanks to concerns regarding climate change and a trend toward sustainable transportation alternatives. In Canada, various incentives, such as EV rebates, have been implemented to encourage consumers to shift to electric vehicles. Governments offer EV subsidies as financial incentives to offset the upfront cost of adopting electric vehicles. These rebates are intended to make EVs more inexpensive and accessible to a wider range of consumers, consequently speeding up the transition to a greener transportation system.

Depending on where you live, the type of green vehicle you’re looking for, and the price, you may save up to $12,500 with the government rebates. While EV buyers in all provinces are eligible for the federal zero-emissions vehicle incentive, some provinces additionally provide their own EV incentives. Which provinces have the most appealing EV incentives? Let’s take a look.

EV rebates in Canada: Understanding EV Rebate Eligibility

What are EV rebates?

EV rebates are monetary incentives provided to consumers who buy or lease electric vehicles. These rebates are often given in the form of a direct payment or a decrease in the vehicle’s purchase price, making EVs more affordable. 

If you are thinking about buying a plug-in hybrid electric vehicle (PHEV) or a battery electric vehicle (BEV) in Canada, you may be eligible for provincial and/or federal EV incentives. 

For EV rebate eligibility, here are the general guidelines to keep in mind:

• The base model for passenger vehicles must have an MSRP below $55,000.
• Higher-priced trim levels for passenger vehicles may still be eligible for rebates, but only up to $65,000 MSRP.
• Station wagons, pickup trucks, SUVs, vans/minivans, and special-purpose vehicles must have an MSRP under $60,000. Expensive models of the vehicle must not have an MSRP greater than $70,000.
• Only new electric vehicles qualify for the iZEV program. EVs that have been test-driven are considered new vehicles if the odometer shows fewer than 10,000 km.
• While not every province offers additional rebates, all Canadian EV owners can claim the federal rebate of up to $5,000, provided they meet the criteria.
• The iZEV program is scheduled to run until March 31, 2025, or until available funds are exhausted.

For examples, popular EVs such as Tesla Model 3, Hyundai’s Ioniq 5, Chevrolet Bolt EV, Hyundai Ioniq 6, and Honda Clarity  plug-in hybrid vehicles are all eligible for rebates in Canada.

How to Get my EV rebates?

Before buying a zero-emission vehicle, EV buyers should check to see if their chosen vehicle is eligible. Consult Transport Canada’s EV rebate database to see if the vehicle in question is eligible. To get a complete list of rebate-eligible vehicles, browse Transport Canada’s EV rebate database by make and model HERE.

The iZEV program’s incentives will be applied at the point of sale by the dealership; consumers are not required to apply. New vehicle rebates are seamlessly incorporated into the purchasing process, with dealerships handling the application and deduction of rebates from the vehicle’s total price.

The total amount will be immediately shown on the bill of sale or lease agreement for qualifying electric vehicles on or after the eligibility date. The dealer will provide the documentation required for reimbursement through the iZEV program. The federal incentive will be applied in addition to any provincial or territorial incentives granted.

However, if you buy a used EV, you may need to apply for incentives separately, since used EV rebates are typically available in provinces and territories. 

Overview of EV Rebate Programs in Canada

In Canada, both the provincial and federal governments have EV rebate programs to encourage the adoption of electric vehicles. While federal incentives give a basic level of support, provincial programs frequently provide additional rebates and incentives suitable for local requirements.

Rebates in Canada are stacking, which means you can combine federal and provincial rebates (if applicable) on the same vehicle purchase. For example, a buyer in Quebec might potentially get up to $12,000 in rebates, which include a $7,000 provincial rebate and a $5,000 federal discount.

Rebates for Used Electric Vehicles in Canada

Depending on your location, rebates for used electric vehicles may be available. However, these are typically offered by provinces or territories, as the federal government currently does not provide rebates for used EV purchases. Rebate amounts for used vehicles are usually lower than those for new ones.

Which provinces have the best EV incentives?

EV buyers in all provinces are eligible for the federal zero-emissions vehicle incentive, British Columbia, Yukon, Quebec, New Brunswick, Nova Scotia, PEI, and Newfoundland additionally offer financial support to EV buyers. Alberta, Saskatchewan, Manitoba, Ontario, and Nunavut do not provide their refunds currently. Ontario once had a $14,000 provincial rebate until 2018 when it was pulled out when Doug Ford became Premier.

While all Canadian provinces offer incentives for purchasing electric vehicles, the amount and type of incentives vary significantly from one province to another. Some provinces offer more generous rebates for EV buyers compared to others. 

Here’s a summary of rebates offered by various provinces and territories across Canada in 2024:

Ontario

While Ontario historically provided substantial rebates, recent legislative changes have resulted in no provincial rebates for EV purchases. Despite this, EV purchasers can still receive a $1,000 rebate for used EVs.

• Currently do not offer provincial rebates for EV purchases.
• $1,000 rebate for used EVs, up to $2,000 rebate for used fully electric vehicle when combined with a scrappage incentive is supported by Plug ‘N Drive.

British Columbia

British Columbia is primarily regarded as a leader in electric vehicle adoption, thanks in part to its substantial incentive plan. However, the amount you receive is determined by your income. To receive the maximum amount, you must earn less than $80,000 per year.

• Rebates tied to household income.
• A provincial rebate of up to $4,000 is available for new BEVs, FCEVs, and PHEVs with an electric range of more than 85 km, as well as up to $2,000 for PHEVs with a shorter range.

Quebec

Quebec has one of the most comprehensive EV incentive programs in Canada. The province offers rebates of up to $7,000 for the purchase or lease of electric vehicles, and up to $5,000 for a new PHEV, depending on battery capacity.

• A provincial rebate of $7,000 for a new BEV or FCEV.
• A provincial rebate $5,000 for a new PHEV
• A $3,500 rebate for used BEVs.

Nova Scotia

Depending on seating capacity and trim, a rebate of up to $3,000 for a BEV or PHEV and have an MSRP of $60,000. When combined with the federal program, you could receive up to $8,000 in reimbursement for buying a new EV.

• Offers a maximum $3,000 provincial rebate for both new BEVs and PHEVs.
• Shorter-range PHEVs get a $2,000 rebate.
• A rebate ranges from $2,000 to $1,000 for used BEVs and PHEVs.

New Brunswick

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. 

• Offers a maximum $5,000 provincial rebate for both new BEVs and PHEVs.
• Shorter-range PHEVs get a $2,500 rebate.
• A rebate of $1,000 for used BEVs and PHEVs.

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.

• A provincial rebate of $5,750 for new BEVs and $3,250PHEVs.
• A rebate of $750 for  the purchase and installation of a Level 2 charger at home.

Newfoundland and 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.

• A rebate ranges from $1,500 to $2,500 for new and used BEVs and PHEVs.

Yukon

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

• Offers a $5,000 provincial rebate on new BEVs, FCEVs and PHEVs.
• Shorter-range PHEVs get a $3,000 rebate.

Northwest Territories

Only residents of communities connected to the Northwest Territories hydroelectric grid are eligible for the EV incentive. This is Canada’s highest rebate program, with a $7,500 rebate for new BEVs and PHEVs. However, this does not apply to used vehicles. The Territory additionally covers 100% of the purchase and installation costs for Level 2 home chargers up to $500.

• Offers the highest EV rebate of $7,500 in Canada
• Covers home charger purchase and installation costs up to $500.

By taking advantage of these available rebates and incentives , Canadians can not only help with environmental sustainability but also save significantly on their electric vehicle purchases.

Now that you’ve learned all about EV rebates in Canada, take a look at some of the best electric vehicles options in Canada right now. If you’re looking for a used EV, check out our used EV inventory and the guides on buying a used electric vehicle.

More from Carnex Blog:

Best Electric Vehicles of 2023 and 2024 in Canada

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Will Buying an Electric Vehicle Save You Money?

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

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