This afternoon, Transport Canada announced the expansion of the Incentives for Zero-Emission Vehicles Program (IZEV).
The new provisions start on April 25, 2022, and expand the IZEV program to include minivans, light-duty pick-up trucks and SUVs.
For a vehicle to be eligible:
- A car must have a base model Manufacturer’s Suggested Retail Price that is less than $55,000. Higher priced versions of these vehicles, up to a maximum Manufacturer’s Suggested Retail Price of $65,000, are also eligible.
- Larger zero-emission vehicles (e.g., sports utility vehicles, minivans and pick-up trucks) must have a base model Manufacturer’s Suggested Retail Price under $60,000. Higher priced versions of these vehicles, up to a maximum of $70,000, are also eligible.
Unless Tesla brings back a software locked and range limited Model 3, the entry level Rear-Wheel Drive Model 3 will still not qualify under the new rules.
The Long Range Model Y is also priced well above the minimum threshold to qualify for the federal rebate.
To accelerate the move to electrify, the Government of Canada is also putting a sales mandate on new passenger vehicles.
At least 20 per cent of all new passenger vehicles sold in Canada will be zero-emission by 2026. By 2030 this will increase to 60 per cent, and in 2035 that number will be 100 per cent.
Further to this, the government is also launching a strategy to reduce pollution from medium and heavy-duty vehicles.
The goal is to have 35 per cent of total sales of these vehicles be zero-emission by 2030, with 100 per cent of sales going zero-emission by 2040 for certain types of vehicles.
The medium and heavy-duty strategy will have additional announcements later this summer.