Canada’s federal Incentives for Zero-Emission Vehicles (iZEV) Program was abruptly paused earlier this week after running out of funding, leaving many prospective electric vehicle (EV) buyers in the lurch.
To help Canadian consumers caught off guard by this sudden change, General Motors (GM) and Nissan have stepped up to offer their own incentives, matching the $5,000 federal rebate for eligible EV buyers.
GM’s $5,000 Incentive for Select EVs
In response to the abrupt end of the rebate program, GM Canada is offering a $5,000 incentive on several of its 2024 and 2025 model-year EVs to help customers and dealerships navigate the unexpected halt in government funding.
This incentive applies to these qualifying EVs, but they must be delivered by January 31, 2025 in order to receive the discount.
- Chevrolet Equinox EV
- Chevrolet Blazer EV
- Cadillac Optiq
Nissan Canada’s $5,000 Incentive
Nissan Canada also acted quickly, announcing today that it would apply an equivalent $5,000 rebate (after tax) on all ARIYA models at dealerships nationwide during January. The move is aimed at supporting customers who had factored in the iZEV rebate when budgeting for an EV purchase.
“Nissan customers are our top priority, and we believe the sudden decision to suspend the federal rebate is unfair to those in the process of purchasing an EV. To help, we will be applying an equivalent rebate on all ARIYA models at all Canadian dealerships this month,” Nissan stated.
Is Tesla Offering a Discount?
As of now Tesla has not offered a similar discount to customers who were banking on receiving the rebate. This has been difficult as many customers had placed orders months before the sudden suspension of the program, but since they had not taken delivery of their vehicle, they will now have to pay $5,000 more on their purchase.
Instead, Tesla raised prices on all Model 3 and Model Y trims by $1,000 ahead of the end of the program. Customers with an existing order are not affected by the price increase.
What Led to the iZEV Rebate Suspension?
The iZEV program had been running since May 2019 and had already faced funding shortages in the past. However, the latest depletion of funds happened much faster than anticipated.
Just days before the official pause, the federal government announced that only $71.8 million remained—enough for about 14,360 rebates of $5,000 each. With average monthly EV sales in Canada reaching 25,000 units, it was clear the money wouldn’t last long.
Following this announcement, a rush of rebate applications flooded the system, quickly exhausting the remaining funds. As a result, Transport Canada directed dealerships and manufacturers to stop applying iZEV incentives over the weekend.
While rebates already submitted before the suspension will still be processed, new applicants will no longer receive the federal incentive unless the government allocates new funds to the program.
Will the iZEV Program Return?
For now, it looks like this is the end of the iZEV program. While the government has replenished funds in the past, there has been no official commitment to do so this time.
Adding to the uncertainty is the upcoming federal election, which is likely to bring policy changes. If a Conservative government takes power, it is possible that EV incentives will not be reinstated, as the party has been less supportive of such subsidies.
Despite the federal rebate’s suspension, provincial incentives are still available in some areas. For a full rundown of applicable provincial incentives, click here.
