Electric vehicles (EVs) can be expensive, especially when compared to gas-powered vehicles. However, a few factors make it more affordable to own an EV, such as no fuel costs, less servicing and maintenance, and EV incentives. The Canadian federal government has put forward two incentives to encourage purchasing or leasing all-electric and plug-in hybrid vehicles (PHEVs). Some provinces and territories also offer additional incentives. In this article, we break down the federal and provincial EV incentives.
Explore the world of electric ⚡ with our list of every EV incentive in Canada:
Federal Electric Vehicle Incentives
The Canadian federal government recognizes how expensive electric vehicles are. To combat this, the federal government has two monetary incentives and tax-write-off capabilities for businesses to help make owning an EV more economical. The incentives are a part of the Incentives for Zero-Emission Vehicles Program (iZEV). To receive the iZEV incentive, your vehicle must meet the eligibility requirements. The two eligibility requirements are purchasing or leasing an eligible vehicle and the vehicle’s eligibility date.
You can find the list of eligible vehicles or a vehicle’s eligibility date on the Government of Canada’s website. Approved vehicles can receive the incentive when purchased or leased for 12 months, on or after the vehicle’s eligibility date.
iZEV Incentives
All-electric: Battery-electric, hydrogen fuel cell, and longer-range plug-in hybrid vehicles are eligible for up to $5,000.
Plug-in hybrids: Shorter range plug-in hybrid vehicles [with a] battery capacity of less than 15 kWh” are eligible for up to $2,500.
The iZEV incentives are added at the time of sale by the dealership from which you are purchasing or leasing the car.
EV Tax Write-Offs for Businesses
Businesses that purchase eligible electric vehicles qualify for a 100% write-off. This tax write-off applies to both approved plug-in hybrids and all-electric cars purchased for use between March 19, 2019, and January 1, 2024. The 100% write-off is limited to $55,000 of the purchase price, plus the federal and provincial sales tax. Businesses can not receive the iZEV incentive and use the 100% write-off, only one or the other.
Provincial Electric Incentives and Rebates
Not every province offers EV or PHEV incentives. Alberta, Saskatchewan, and Manitoba have yet to release provincial EV incentive programs. All available provincial incentives can be stacked with the federal incentive programs.
British Columbia
The CleanBC Go Electric program offers rebates of up to $3,000 for eligible vehicles with an MRSP of no more than $55,000. The BC incentive will be applied, along with any applicable federal incentives at the point of purchase by the dealership.
CleanBC Go Electric Incentives
Purchase or lease of an all-electric vehicle: $3,000
Purchase or lease of a hydrogen fuel-cell vehicle: $3,000
Purchase or lease of a plug-in hybrid vehicle: $1,500
Home EV Charger Rebate
The Government of BC also has a rebate for purchasing and installing EV chargers for single-family homes. The rebate covers 50% of Level 2 charging equipment costs, equalling up to $350. EV charger rebates for workplaces and apartments/condos are also available.
PST Tax Exemption
The BC government has a PST tax exemption for used all-electric, plug-in hybrid, and hydrogen fuel-cell vehicles. Vehicles must have been driven at least 6,000kms and have a purchase price between $55,000-$75,000 to qualify for the exemption.
Ontario
Ontario has two electric vehicle incentives, the Used Electric Vehicle Incentive and the Scrappage Incentive Program. These incentives are a part of Ontario’s Plug ‘N Drive program.
The Used Electric Vehicle Incentive offers $1,000 to purchase a used all-electric car with a re-sale price of under $50,000. To receive the Used Electric Vehicle Incentive, you have to attend a free EV seminar, purchase a used EV, and then claim your incentive by providing the bill of sale, proof of insurance, vehicle registration, and seminar certificate.
The Scrappage Incentive Program offers you $1,000 when you recycle your old gas-powered car and purchase a used electric vehicle.
Between the two incentives, you can receive up to $2,000 towards your used EV. Ontario does not currently have incentives for the purchase of new electric vehicles or plug-in hybrids.
Quebec
Quebec offers a few different incentives for new vehicles. The vehicles have to be eligible and have an MRSP of less than $60,000.
- All-electric vehicles: $8,000
- Plug-in hybrids (amount based on the capacity of battery): $500, $4000, or $8,000
- Hydrogen-powered vehicles: $8,000
- Electric motorcycles: $2,000
- Electric scooters: $500
Newfoundland and Labrador
In New Foundland and Labrador, you can receive $2,500 for your new or used all-electric vehicle. The EV Rebate Program is applicable for eligible individuals, businesses, and non-profit organizations. The incentive only applies to purchased or leased (minimum 48 months) new all-electric vehicles and pre-owned all-electric vehicles.
If you meet the requirements for the EV rebate, you can apply online.
New Brunswick
New Brunswick has a comprehensive rebate program. The list of eligible makes and models is the same as the federal government’s iZEV program. Specific requirements include vehicles with six seats or fewer and a maximum MRSP of $55,000 or vehicles with seven seats and a maximum MRSP of $60,000.
Plug-in New Brunswick EV Rebates
New all-electric vehicle: $5,000
New long-range PHEV: $5,000
Used all-electric vehicle: $2,500
Used PHEV: $1,000
EV home charging stations: $750
48 months: $5,000
36 months: $3,750
24 months: $2,500
12 months: $1,250
48 months: $2,500
36 months: $1,875
24 months: $1,250
12 months: $625
Currently, there are no rebates for hydrogen fuel cell vehicles, electric motorcycles, or electric scooters.
Nova Scotia
Through Nova Scotia’s EV Assist Electrify Rebate Program, residents can receive up to $3,000 to purchase or lease an EV, PHEV, or e-bike.
New all-electric vehicle: $3,000
New long-range PHEV: $3,000
New short-range PHEV: $2,000
Used all-electric vehicle: $2,000
Used long-range PHEV: $1,000
Used short-range PHEV: $1,000
Eligible vehicles are the same as the federal iZEV program and can have six to seven seats with an MRSP of $45,000 – $60,000.
Prince Edward Island
Prince Edward Island’s EV incentive program offers up to $5,000 towards your new, used, or leased EV or PHEV. Residents can also receive one free Level 2 charger. Installation fees are not included.
New or used all-electric vehicle: $5,000
New or used PHEV: $2,500
48+ month Lease: $5,000
36 month lease: $3,750
24 month lease: $2,500
12 month lease: $1,250
48+ month lease: $2,500
36 month lease: $1,875
24 month lease: $1,250
12 month lease: $625
The list of eligible vehicles is the same as the federal iZEV program. Used EVs and PHEVs must have a purchase price of less than $55,000.
Yukon
The Yukon provides rebates for zero-emission vehicles through its Clean Energy program. Yukon residents can apply for rebates for electric motorcycles, zero-emission snowmobiles, electric vehicles, electric bicycles, and a shipping rebate for used electric vehicles. Additionally, you can receive a rebate for a Level 2 electric charging station.
- Electric motorcycles: 25% of the cost of a new electric motorcycle of up to $2,000.
- Zero-emission snowmobiles: $2,500 for a new zero-emission snowmobile.
- Electric vehicles: $5,000 for a new battery-electric motor vehicle, hydrogen fuel cell motor vehicle, or a plug-in hybrid vehicle.
- Electric bicycles: 25% of the cost of a new electric bicycle of up to $750 and up to $1,000 for new electric cargo bicycles.
- Shipping rebate: 100% of the shipping costs up to a maximum of $1,500 per used electric vehicle (EV, PHEV, or hydrogen fuel cell).
Level 2 chargers:
- Personal residences: rebates of up to $750.
- Multi-unit/commercial buildings: rebates of up to 75% of total costs to a maximum of $7,500 per EV charger.
- Municipal and First Nation government buildings: rebates of up to 90% of total costs to a maximum of $9,000 per charger.
Northwest Territories
Through the Arctic Energy Alliance, the Northwest Territories offers electric vehicle rebates of $5,000 to purchase new battery-electric cars or plug-in hybrid electric cars. And residents can also receive a $500 incentive for a Level 2 electric charger.
Although provincial and federal incentives won’t apply to your purchase of a Tesla Model X or Porshe Taycan, many reliable vehicles qualify. Continue your search for the perfect EV 🚙 with our top list of electric SUVs and trucks.
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