NEWS: Federal EV incentives, administered by the Canadian government, offer cash rewards to individuals who buy or lease eligible EVs. The main goal is to encourage the adoption of electric vehicles, by controlling emissions from conventional high-emission vehicles. It’s important to note that not all electric vehicles qualify for this incentive.
Understanding different motivations
The EV incentive program offers two different incentives depending on the type and range of the vehicle. The starting incentive is $5,000 for hydrogen fuel cells, long-range plug-in hybrid vehicles and battery-electric cars that can cover more than 50 kilometers on a single charge.
In contrast, the second incentive, totaling $2,500, is designed for plug-in hybrid electric vehicles, typically those with a range of less than 50 kilometers. Eligibility for these incentives requires vehicles to meet safety standards, certain requirements and maintain zero emissions. Individuals are encouraged to check Transport Canada’s approved web portal for an updated list of vehicles before making a purchase to confirm eligibility.
Types of EV incentive programs
Canada has two main EV incentive programs: iMHZEV and iZEV.
The iMHZEV initiative offers medium- and heavy-duty zero-emission vehicles that are particularly cost-effective over light models. This program operates by offering point-of-sale incentives with the aim of increasing the purchasing power of consumers considering these vehicles.
In contrast, the iZEV program extends the maximum $5,000 incentive to the purchase of qualified new zero-emission vehicles. Specifically, two-wheelers such as bicycles, scooters and motorcycles are not eligible under this program. Moreover, older vehicles do not meet the requirements to receive the iZEV incentive.
Who is eligible for the EV incentive?
Canadians who buy or lease eligible electric vehicles are eligible for EV incentives if they pay cash or choose financing. But it’s important to get the vehicle from a dealer in Canada, because those found outside the country don’t meet the incentive requirements.
An important note is that dealers selling eligible vehicles are prohibited from paying additional fees associated with the iZEV program. Transport Canada reserves the right to exclude any merchant from the program who violates this policy.
Apply for the incentive
Typically, an EV incentive is applied during the purchase or lease transaction. The specific amount of the incentive will be detailed in the bill, and any related taxes or fees must be calculated before deducting the incentive.
What’s more, starting March 28, 2023, pre-approved car sharing companies have the ability to receive up to 50 incentives per calendar year.
Canada’s EV Incentive Program provides significant financial incentives to individuals who purchase or lease eligible electric vehicles. The government’s aim is to encourage the adoption of electric vehicles, thereby reducing greenhouse gas emissions. Before finalizing a purchase, it is important to ensure that the selected vehicle meets all requirements set by Transport Canada. If you’re considering an electric vehicle, taking advantage of an EV incentive program can contribute to continued sustainability.
Questions to be asked
Q: Who is eligible for the EV Incentive Program?
A: Canadian individuals who purchase or lease eligible electric vehicles are eligible for the EV incentive.
Q: What types of vehicles are eligible for EV incentives?
A: Vehicles eligible for EV incentives include hydrogen fuel cells, long-range plug-in hybrid vehicles, battery electric vehicles and short-range plug-in hybrid vehicles.
Q: Are vehicles purchased outside of Canada eligible for EV incentives?
A: No, vehicles acquired outside of Canada are not eligible for the EV incentive. To qualify, the vehicle must be purchased or leased from a licensed dealer in Canada.