The Government of Canada’s Incentives for Zero-Emission Vehicles (iZEV) Program is nearly out of money. There has been no official announcement that the fund will be topped up, so here’s what you need to know if you are planning on buying a qualifying electric vehicle (EV) soon.
Launched in May 2019, the iZEV Program offered Canadians financial rebates of up to $5,000 for battery electric vehicles (BEVs) and $2,500 for plug-in hybrids (PHEVs). Its impact has been significant, with over 546,000 vehicles having received incentives, helping to boost ZEV market share in Canada from 3.1% in 2019 to an impressive 14.2% by late 2024.
However, the program was designed to end on March 31, 2025, or when all allocated funding was exhausted, whichever came first. But with just under $72 million left in the fund, it will definitely end much sooner than that.
In an email update sent to industry stakeholders, a copy of which was obtained by Drive Tesla, the government says the program will soon “pause” and no more rebates will be available.
“Once all funds are depleted, the program will pause and Canadians will not be able to receive incentives when purchasing/leasing new eligible vehicles through the iZEV Program. Prior to this, requests from dealerships and authorized sellers may be submitted as per usual until further updates are communicated,” the email reads.
According to the email, there is $71.8 million left in the fund. Assuming all of that money will be claimed by buyers of BEVs, that works out to enough money for approximately 14,360 more $5,000 rebates. Taking a look at Q3 2024 EV sales figures, the most recently available figures from the federal government, an average of 25,000 EVs were sold each month, meaning there is about half a month left before funding runs out.
Transport Canada has updated their website with a message that reads, “Due to high uptake, the Incentives for Zero-Emission Vehicles (iZEV) Program will pause before March 31, 2025. They have also added a list of Frequently Asked Questions relating to the end of the program.
Given the use of the word “pause” in both the email and on Transport Canada’s website, it sounds like there is a possibility the fund will be topped up with additional money, like it has in the past. We have reached out to the government for clarification, but have not received a response by the time of publication. We will update this article when we get a response.
UPDATE 12:15pm PT: When asked if the program would be topped up, Transport Canada only reiterated that the program will pause once funds run out. Here is their response in full.
“The iZEV Program will pause once the allocated funds have been fully exhausted. This is expected to be before the March 31, 2025 Program end date. Should there be changes to the Program, including the pause, Canadians will be informed through the Program website.”
