The Canadian government has announced an extension of its Incentives for Zero-Emission Vehicles (iZEV) program. THe program was originally set to expire on March 31, 2025.
The iZEV program, first launched in 2019, has been allocated an additional C$607.9 million in Budget 2024, and now has no definitive end date. The program offers rebates up to C$5,000 for the purchase or lease of new electric vehicles (EVs), including battery electric, plug-in hybrid, and hydrogen fuel cell vehicles.
This federal program is in addition to provincial rebates, effectively increasing the financial incentives available to consumers to as much as $12,000 combined for Quebec residents. The Quebec government recently announced it was phasing out its rebate program by 2027 as the province battles a huge deficit.
Despite the boost in vehicle purchase subsidies, the 2024 budget announcement notably leaves out additional funding for EV charging infrastructure, something that is crucial for the transition to electric mobility. The government recently mandated all new passenger vehicle sales must be zero-emission by 2035.
However, the government has not left the production side of the EV equation untouched. New in this budget is a ten percent tax credit for investments in facilities for assembling EVs and producing essential components like batteries and active cathode materials.
The iZEV program has played a pivotal role in the significant increase of ZEVs in the Canadian market, which rose from 3% of new vehicle sales in 2019 to 11% in 2023. This surge in adoption has been propelled by the purchase or lease of over 450,000 zero-emission vehicles since the program’s inception, according to the 2024 budget announcement. (via Driving.ca)
