If you are thinking of purchasing or leasing an electric vehicle (EV) or Plug-In Hybrid (PHEV) and want to save money, read on for all of the new information on the Canadian federal iZEV program as well as rebates and incentives by Province.
EV Rebates For All Canadians
First, a few quick stats about the program thus far. Since it’s inception in 2019, approximately 195k vehicles have purchased worth a combined rebate of 855 million. The most popular car is the Tesla with 48000 rebates and that’s even with a about a year of ineligibility due to the price increase in 2022. Second is Hyundai at 36500 and then Toyota in 3rd at 25500. The program is slated to run until March 31st 2025, however this may be dependent on current funding levels and any potential top ups of the fund.
Earlier this year eligibility requirements were changed subtly to allow for more vehicles to be eligible for the program. The federal rebate still stands as a point of sale incentives of up to $5,000 for consumers who buy or lease an EV. Currently, all pure electric and hydrogen fuel cell vehicles qualify for the full amount, as do plug-in electric hybrids. The update is now that a PHEV must be able to travel more than 50 kilometres without using their gasoline engine to qualify for the full amount. Examples of the latter include the Mitsubishi Outlander PHEV and the Toyota RAV4 Prime. Plug-In Hybrids which cannot reach that mark are granted a $2,500 rebate.
Customers only get the five grand if they buy a qualifying vehicle outright or lease it for 48 months. Sums drop to $3,750 and $2,500 for 36- and 24-month leases, respectively, while a 12-month lease will net a $1,250 rebate. Plug-In Hybrids which qualified for a maximum iZEV rebate of $2,500 see their numbers drop by the same percentages for short-term leases.
Sticker pricing (MSRP) also plays a key role in determining whether the vehicle gets any cash from Ottawa. A passenger car must offer a base model with an MSRP of less than $55,000; higher priced trims of this same vehicle, up to a maximum MSRP of $65,000, will also be eligible for purchase incentives. With recent Tesla price cuts the Model 3 is now back in contention.
A crossover, pickup truck, SUV, or minivan needs to have a base model with an MSRP of less than $60,000. While higher priced trims of these same models up to a maximum sticker of $70,000 which is another one of the changes this year. This is huge news for Tesla as for the first time the Model Y now qualifies for the $5000 rebate. This is thanks to a cheaper variant of the Model Y being offered as you guessed it $59,990. Tesla really doesn’t want to sell this model but knows it needs to exist to be able to take advantage of the rebate.
If you are thinking of purchasing a Tesla, consider using my referral code to earn credits for free Supercharging, merchandise, accessories, and software upgrades.
Provinces
A few facts about Provincial rebates before getting to each specific area. Not surprisingly Quebec leads all provinces with 46% of sales yet they only account for 23% of the Canadian population. Could it have anything to do with the huge provincial rebate? British Columbia is next at 40% and yet they only account for 13% of the population. They also have a pretty attractive rebate. We then have the most populous province of Ontario, they used to offer the highest rebate of $14,000 however the Ford government axed it when they reached power. Ontario no longer offers any rebates and the stats reflect this. Ontario represents 38% of Canadians yet only pulled in 9% of the rebates.
You can watch the video below, or continue reading for rebates for each Province/Territory. Several municipal governments and utility companies offer various degrees of incentives, mainly for home charging so be sure to do your research for your local area.
Newfoundland & Labrador
Starting out East since as a region the east coast has some of the better rebates in the country. You can save $2,500 on the purchase or lease of a qualifying EV and $1,500 for a PHEV. The rebate is an initiative of the Government of Newfoundland and Labrador and is administered by Newfoundland Hydro. Rebates are available to eligible individuals, businesses, not-for-profit organizations, or municipalities in the province. Vehicles are eligible through the purchase or lease (minimum 48 months) of a new EV or PHEV. A pre-owned EV or PHEV also qualifies under those guidelines.
Nova Scotia
Nova Scotians can garner $3,000 if they purchase a qualifying EV or long-range Plug-In Hybrid as defined by the federal iZEV program. Short-range PHEVs will net $2,000. Used cars are also included in this, with second-hand battery electric vehicles priced from $10,000 – $55,000 eligible for a $2,000 rebate. Plug-In Hybrids of any range capacity which are priced from $10,000 – $40,000 can get a $1,000 rebate.
Prince Edward Island
Even the nation’s smallest province has a sensible EV program. The Government of P.E.I. is providing $5,000 to Islanders who purchase a new or used EV. Also on offer is $2,500 to those who buy a PHEV. In addition, Islanders who utilize the incentive will receive a free Level 2 charger. However they are responsible for any installation costs associated with charging infrastructure and only one charger will be given per household.
New Brunswick
In New Brunswick, Plug-In NB administers the rebate program which is good for both new and used electric vehicles. Sums and criteria precisely mirror that of Ottawa’s iZEV which is $5,000 for a new EV or long-range plug-in hybrid on a purchase or 48-month lease, $2,500 on a short-range PHEV under the same terms, and proportioned rebates for shorter term leases on those cars. Plug-In NB also provides $2,500 for a used EV selling for between $10,000 and $60,000, or a $1000 for on a used Plug-In Hybrid which tops out at $50,000.
Quebec
Quebec is known for its rapid EV adoption, partially driven by these rebates but also supported by robust public charging infrastructure. All new electric vehicles with an MSRP less than $60,000 qualify for $7,000 from the government, while long and short range Plug-In Hybrids are good for for $5,000 and $2,500, respectively, again with a sticker price south of $60,000. The eligible list of new vehicles is similar to iZEV with a few notable differences — including a couple of Tesla models. The rebate for a qualifying used electric vehicle is $3,500.
British Columbia
Sadly after Quebec we gotta skip over half the country. In British Columbia, their rebate program which has a unique twist compared to all the others Provinces. Cars with a maximum MSRP of $55,000 and larger vehicles (wagons, minivans, SUVs, et al) priced up to $70,000 may qualify. However, BC also considers an individual’s income when determining total rebates. If applicants make less than $80,000 per year, the rebate is $4,000. Extending ones income to $90,000 halves the rebate to $2,000; making up to six figures of annual income cuts the rebate to just $1000. Anyone who makes over $100,000 per year is out of luck and cannot get a rebate.
Yukon
Despite the propensity of cold temperatures to take a bite out of battery range, the Yukon is encouraging the adoption of EVs. To qualify, pickup trucks must have an MSRP of below $70,000 for the base trim of a model, while all other vehicle types need to bear a sticker of less than $60,000 for entry level trim. Similar to the federal program, EV’s and PHEV’s with an all-electric range of over 50 kilometres qualify for $5,000 rebate. Plug-In Hybrids with a range of less than 50km can get $3,000 from the government.
