The Government of Canada’s Incentives for Zero-Emission Vehicles (iZEV) Program has officially been paused after exhausting its funding. This means that there are no more rebates for battery electric vehicle (BEV) and plug-in hybrid electric vehicle (PHEV) buyers in Canada. With a federal election on the horizon, questions remain about whether the program will return.
The Final Days of Funding
Launched in May 2019, the iZEV Program provided rebates of up to $5,000 for BEVs and $2,500 for PHEVs. The program was originally slated to run until March 31, 2025, or until all allocated funds were depleted, whichever came first. However, on Friday last week the government announced that only $71.8 million remained, enough for approximately 14,360 rebates of $5,000. With an average monthly EV sales rate of 25,000 vehicles, it was clear the remaining funds wouldn’t last long.
It appears as though the situation escalated rapidly after the announcement that funds were running low on. According to the government, an “unprecedented volume” of rebate requests in the following days quickly consumed the remaining funds, forcing Transport Canada to pause the program.
“Due to an unprecedented volume of requests received following the announcement on Friday, January 10th, the iZEV Program funds have now been fully committed. Consequently, the iZEV Program has now officially paused,” the government said in an email provided to Drive Tesla.
Immediate Impact
Transport Canada has instructed manufacturers, dealerships, and authorized sellers to immediately stop offering iZEV incentives. However, pending requests already submitted will be processed according to program guidelines.
The pause also coincided with Tesla raising prices on its Model 3 and Model Y vehicles, which eliminated them from eligibility for the rebate. Despite this, a surge in purchases during the final days of the program resulted in over 14,000 EVs being sold between January 10 and January 13, a number equivalent to nearly 60% of November 2024’s total EV sales (23,714).
Will The iZEV Rebate Return?
As of now, the program’s future remains unclear. While previous funding shortages led to government top-ups, no such commitment has been announced this time. With a federal election looming and speculation about policy shifts under a potential Conservative government, there are growing doubts about the program returning later this year.
Provincial Rebates
While the federal rebate has ended, there are still a number of provincial rebates still available to BEV and PHEV buyers. You can read more about the status of provincial rebates here.
